NGOs Target Financial Investment in Farmland

Jennifer Clapp

Banks, pension funds, hedge funds and other financial institutions have stepped up their investment in farmland in recent years, including financing for controversial large-scale land deals in developing countries. NGOs are now calling specifically on financial institutions to ensure that their investments are environmentally and socially sound, or consider divestment.

Last month, Friends of the Earth released a report that linked a number of European banks and investment firms to large-scale land acquisitions in Uganda. In this case, the financial institutions provided financing to Wilmar, a major agricultural trading firm with extensive interests in palm oil production and refining. FOE’s research showed that Wilmar’s subsidiary in Uganda had violated environmental and land tenure legislation in connection with recent land purchases in the country.