FOOD PRODUCTION AND FOOD SECURITY IMPLICATIONS OF LARGE-SCALE LAND DEALS: EVIDENCE FROM AGRICULTURAL HOUSEHOLDS IN NORTHERN GHANA

Abstract

Following the 2007-08 multiple crises, most land-rich nations witnessed an upsurge in large-scale land acquisition (LSLA). This generated debate among development practitioners who raised mixed concerns about the implications of LSLA on local occupants. Whereas some view such practice as development opportunity, others highlight its threats to the environment, food sovereignty, food production, food security and other livelihoods. In line with these views, several empirical studies investigated the effects of LSLA on local occupants. However, the literature is unclear about how LSLA (i.e., acquisitions in ranges of 20.23ha or more) by different actors affect food production and food security of agricultural households. Using information gained directly from a survey of 664 agricultural households selected through multistage sampling, and six (6) focus group discussions, this study classified households into non-exposure to LSLA, direct exposure to LSLA (i.e., losing farmland, labour or forest resources to LSLA), indirect exposure to LSLA (i.e., living in affected community, losing uncultivated or having limited land due to LSLA) by domestic and foreign entities. Based on these classifications, this study analysed the food production and food security effects of LSLA by domestic and foreign entities in northern Ghana. Specifically, the study examined relationship between direct exposure and indirect exposure to LSLA by domestic and foreign entities and farmland access using descriptive statistics. Further, the study examined the effect of direct and indirect exposure to LSLA by domestic and foreign entities on labour supply using descriptive statistics and multinomial endogenous treatment effect model. Also, the effects of direct and indirect exposure to LSLA by domestic and foreign entities on farm investment were analysed using two-stage conditional maximum likelihood while the effects on farm income and food security were analysed using multinomial endogenous switching regression. Using descriptive statistics, the qualitative responses were analysed to explain the survey findings. The results revealed that households directly and indirectly exposed to LSLA by domestic and foreign entities are more likely to lose control over land use and transfer rights, redistribute farm labour to urban off-farm employment instead of unemployment or local rural off-farm employment where investment farms are established with the acquired land. Further, the results revealed that the direct and indirect exposure to LSLA by domestic and foreign entities reduces farm income despite increasing investment in short-term land improvements in a form of mineral fertilisers. Consequently, these factors also decrease household food security. Based on the effects of LSLA on land access and rights of control, labour allocation, long-term investment and higher expenditure on soil amendments, and farm income, both LSLA by domestic and foreign entities tend to undermine food security of affected households. Thus, traditional authorities or the state should enhance transparency in land markets for farmers to acquire land for production. Government through the ministry of food and agriculture can also expose farmers to land use intensification to counter the reduced access to land or labour-saving technologies on farms to counter the loss of labour. Skills development programs may also be introduced to enhance the benefits of labour supply to urban areas.