Dispossession and Imperialism Repackaged as “Feeding the World”

The world is fast losing farms and farmers through the concentration of land into the hands of rich and powerful land speculators and agribusiness corporations. Smallholder farmers are being criminalised and even made to disappear when it comes to the struggle for land. They are constantly exposed to systematic expulsion.

In 2014, the Oakland Institute found that institutional investors, including hedge funds, private equity and pension funds, are eager to capitalise on global farmland as a new and highly desirable asset class. Financial returns are what matter to these entities, not food security.

Consider Ukraine. The organisation Grain found that in 2014 small farmers operated 16% of agricultural land in that country, but provided 55% of agricultural output, including: 97% of potatoes, 97% of honey, 88% of vegetables, 83% of fruits and berries and 80% of milk. It is clear that Ukraine’s small farms were delivering impressive outputs.

Following the toppling of Ukraine’s government in early 2014, the way was paved for foreign investors and Western agribusiness to take a firm hold over the agri-food sector. Reforms mandated by the EU-backed loan to Ukraine in 2014 included agricultural deregulation intended to benefit foreign agribusiness. Natural resource and land policy shifts were being designed to facilitate the foreign corporate takeover of enormous tracts of land.

Frederic Mousseau, policy director at the Oakland Institute, stated at the time that the World Bank and IMF were intent on opening up foreign markets to Western corporations and that the high stakes around the control of Ukraine’s vast agricultural sector, the world’s third largest exporter of corn and fifth largest exporter of wheat, constitute an overlooked critical factor. He added that in recent years, foreign corporations had acquired more than 1.6 million hectares of Ukrainian land.

Western agribusiness has been coveting Ukraine’s agriculture sector for quite some time, long before the coup. That country contains one third of all arable land in Europe. An article by Oriental Review in 2015 noted that since the mid-90s the Ukrainian-Americans at the helm of the US-Ukraine Business Council had been instrumental in encouraging the foreign control of Ukrainian agriculture.

In November 2013, the Ukrainian Agrarian Confederation drafted a legal amendment that would benefit global agribusiness producers by allowing the widespread use of genetically modified seeds. When GMO crops were legally introduced into the Ukrainian market in 2013, they were planted in up to 70% of all soybean fields, 10-20% of cornfields and over 10% of all sunflower fields, according to various estimates (or 3% of the country’s total farmland).

Interestingly, the investment fund Siguler Guff & Co acquired a 50% stake in the Ukrainian Port of Illichivsk in 2015, which specialises in agricultural exports.

In June 2020, the IMF approved an 18-month $5 billion loan programme with Ukraine. According to the Brettons Wood Project website, the government committed to lifting the 19-year moratorium on the sale of state-owned agricultural lands after sustained pressure from international finance. The World Bank incorporated further measures relating to the sale of public agricultural land as conditions in a $350 million Development Policy Loan (COVID ‘relief package’) to Ukraine approved in late June. This included a required ‘prior action’ to “enable the sale of agricultural land and the use of land as collateral.”

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https://www.counterpunch.org/2020/12/01/dispossession-and-imperialism-repackaged-as-feeding-the-world/

December 3, 2020 | Categories: environment, small tips, starting a garden | Tags: capitalism, capitalist regimes, food security, grow your own, small farms, SOS | Leave a comment