Discover how soaring global land prices and land grabs threaten food production and farmers. Can we halt this alarming trend and ensure a sustainable future?
Soaring land prices, land grabs, and carbon schemes are creating an unprecedented ‘land squeeze’, threatening farmers and food production, according to a new report released today (Monday, May 13). The publication, by the International Panel of Experts on Sustainable Food Systems (IPES-Food), highlights the urgent need to address these critical issues to ensure global food security and sustainable farming practices.
Land Issues Rise on Global Agenda
The report comes as land issues rise up the global agenda. A recent World Bank report on net zero in food systems calls for measures to reduce the conversion of forests to croplands. Additionally, Brazil has launched an agrarian reform policy to allocate land for 295,000 families by 2026.
The IPES-Food states that the study exposes the “alarming escalation of land grabbing” in various forms, including through ‘green grabs’, opaque financial instruments and speculation, rapid resource extraction, and intensive export crop production.
Global Land Prices on the Rise
Since 2022, global land prices have been increasing significantly. According to the report, land around twice the size of Germany has been snatched up in transnational deals worldwide since 2000.
Major new pressures are emerging from ‘green grabs’ for carbon and biodiversity offset projects, conservation initiatives, and clean fuels.
Huge swathes of farmland are being acquired by governments and corporations for these ‘green grabs’ – which now account for 20% of large-scale land deals. Governments’ pledges for land-based carbon removals alone add up to almost 1.2 billion hectares, equivalent to total global cropland. Carbon offset markets are expected to quadruple in the next seven years.
Land Prices and Inequality
This global trend of land grabs and green grabs is particularly affecting Sub-Saharan Africa and Latin America, while land inequality is growing fastest in Central-Eastern Europe, North and Latin America, and South Asia, the report indicated.
70% of the world’s farmland is now controlled by just 1% of the world’s largest farms. In Latin America, the smallest 55% of farms occupy just 3% of land. The report outlined that between 2008 and 2022, land prices nearly doubled globally – and tripled in Central-Eastern Europe.
In the UK, an influx of investment from pension funds and private wealth contributed to a doubling of farmland prices from 2010-2015, according to the expert panel. Nearly 45% of all farmland investments in 2018, worth roughly $15 billion, came from pension funds and insurance companies.
The Consequences of Unchecked Land Demand
As demand for land continues unchecked, the panel of experts said the ‘land squeeze’ is inflaming land inequality and making small and medium-scale food production increasingly unviable – leading to farmer revolts, rural exodus, rural poverty, and food insecurity. Farmers, peasants, and indigenous peoples are losing their land (or forced to downsize), while young farmers face significant barriers in accessing land to farm, the report has claimed.
IPES-Food Expert Panel Calls for Action
The IPES-Food expert panel calls for action to:
- Halt green grabs and remove speculative investment from land markets;
- Establish integrated governance for land, environment, and food systems to ensure a just transition;
- Support collective ownership and innovative financing for farmers to access land;
- Forge a new deal for farmers and rural areas, and a new generation of land and agrarian reforms.
Expert Opinions
Susan Chomba, IPES-Food expert from Kenya, said:
“Land isn’t just dirt beneath our feet, it’s the bedrock of our food systems keeping us all fed. Yet we’re seeing soaring land prices and grabs driving an unprecedented ‘land squeeze’, accelerating inequality and threatening food production. The rush for dubious carbon projects, tree planting schemes, clean fuels, and speculative buying is displacing small-scale farmers and Indigenous Peoples.”
Nettie Wiebe, IPES-Food expert from Canada, added:
“Imagine trying to start a farm when 70% of farmland is already controlled by just 1% of the largest farms – and when land prices have risen for 20 years in a row, like in North America. That’s the stark reality young farmers face today. Farmland is increasingly owned not by farmers but by speculators, pension funds, and big agri-businesses looking to cash in. Land prices have skyrocketed so high it’s becoming impossible to make a living from farming. This is reaching a tipping point – small- and medium-scale farming are simply being squeezed out.”
Key Takeaways:
- A striking disparity exists, with 70% of farmland controlled by only 1% of the largest farms, causing severe challenges for new farmers.
- Land prices have been rising consistently for the past 20 years, making it nearly impossible for small and medium-scale farmers to sustain their livelihoods.
- The majority of farmland is now owned by speculators, pension funds, and large agri-businesses rather than individual farmers.
- A critical tipping point is being reached where small- and medium-scale farming operations are on the verge of being entirely squeezed out.
