Land Ownership in Developing Regions

Land ownership is a determining factor as it relates to both individual and national economic development. The way in which land is owned, or not, plays a role as to how it will be exploited, developed, and passed on to future generations. In many developing countries, most of the small and medium-sized agricultural workers and producers are not the legal owners of the land that they exploit. Rather, these farmers tend to be renters or short-term occupants of the land. Nevertheless, agricultural development is probably one of the most preferable uses for unoccupied lands given that the alternatives tend to be much more harmful to the environment. For instance, irregular occupants of a rural terrain could exploit its natural resources through unregulated mining, could engage in irreparable deforestation, or could harvest illicit crops.

Land Ownership in Developing Regions

The issue of legal ownership and long-term land grants is one that national governments should regulate in order to maximize the output of their agricultural industries. Furthermore, land ownership and land security is demonstrated to have a positive impact on the lives of those who live close to it and work it. Studies demonstrate that nutrition, gender parity, and even education levels are better amongst families of landowners, when compared against communities where there is proprietary insecurity over the land. Furthermore, in zones of conflicts and rural areas with weak state institutions, farmers and workers of the land have no incentive to preserve the environment or invest in long-term infrastructure for agricultural production. Conversely, families that legally own the land that they work have a higher level of agricultural productivity, have long-term plans and goals, practice agroforestry, and invest much more in their property. Likewise, the children, including girls, of landowning families are much more likely to be educated than their other rural peers. Moreover, land ownership affords families in developing regions an unequaled level of financial security. Nevertheless, one of the major obstacles to implementing a transparent and efficient land rights regime, in any country, is that such a system requires a large bureaucratic structure as well as an effective state presence in rural and remote areas. Similarly, corruption is another major obstacle to the maintenance of a clear and useful property record, particularly in marginal and peripheral regions of the developing world. In fact, in many developing regions, particularly Africa, the vast majority of landownership and usage is not formally or properly documented.

Land is a valuable asset and a safe investment, which is why Farmfolio has created a new asset class backed by productive agricultural land. Simultaneously, Farmfolio allows small farmers and mid-sized family operations to receive capital injections and to optimize their output by collaborating with a team of industry experts.

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