Summary Eduardo Baumeister Land concentration and food security in Central America
In Central America lands means power: land tenure and land use remain pivotal for the region s social, economic and political development. Agriculture is the main economic activity and the rural population accounts for almost half the population, which is higher figure than in the rest of Latin America. In recent history, agrarian reform and land distribution initiatives have generally failed to achieve a long-lasting effect, and export-oriented agricultural models have led to further land concentration. The current agri-export model, which centres on the production of raw materials for biofuels, has led to a significant increase in the size of agricultural land while reducing access to land and food supplies. Moreover, the mass modification of land use leads to strong disputes, which are particularly violent in Guatemala and Honduras. Small-scale farmers are the largest producers of staple grains. Therefore, excluding this sector of the population from investment and agricultural innovation processes has serious implications for large part of the population. Given the growing dependency on foreign markets and their price volatility, along with the limited available land and water resources, governments are paying more and more attention to food sovereignty. This paper provides a study of the rural landscape and agrarian dynamics of the last decades in Guatemala, Honduras, El Salvador and Nicaragua, based on key elements such as agrarian structure, the use of land, the expansion of the agricultural frontier, and population trends. All four countries are witnessing the impact of the changes in the agrarian model, but the pace varies from country to country.
Land ownership and food security in Central America: continuity and change Decrease in food self sufficiency Until 1970, about 90% of staple grain locally consumed was produced in Central America. Since the neoliberal adjunstment policies came into force between 1990 and 2010, there has been a rapid decline in the region s ability to produce its own food. Until the late 1970s, rural areas in Central America produced almost all the necessary food for the population and generated foreign exchange through exports. Over half the population lived in rural areas and most were employed as workforce. The main dominant centres of political power were also to be found in the rural agricultural areas. In the agrarian structures of the countries studied in this paper, land has traditionally been concentrated in a relatively small group of large farms. This historical model still prevails today. In the 1990s, while the neoliberal economic and political model gained ground, land was intensively re-concentrated in different forms, especially in those areas used for sugarcane, African oil palm and extensive livestock farming. In the agricultural sector, employment remains high; in Guatemala, Honduras and Nicaragua, it accounts for 30% of the working population. Most peasants still rely on production techniques based on growing staple grains and manual labour, supplemented by inputs, seeds and purchased goods. Moreover, most people in rural areas are persistently poor. Some of the most significant changes in the rural areas today are linked to areas far away from the communities and the subsequent urbanization cycles and international emigration. Expansion of sugar cane and African oil palm The area used for sugarcane and African oil palm increased by 128% between 1990 and 2010. The rapid growth and spatial distribution of these products are strongly linked to the intensity of agrarian conflicts. Palm oil is used to produce different types of oils, margarine, soap, industrial inputs and biofuels, but growing palm requires considerable additional irrigation. Oil palms yield for about ten years, after which the soil is generally very deteriorated. Sugarcane is used to produce sugar, molasses, electricity and ethanol. The use of ripeners affects the soil and water. Agricultural burning affects the health of people living nearby Table 1. Surface of sugarcane and African oil palm between 1990 and 2010 (hectares) 1990 2000 2010 Change in % 1990-2010 El Salvador 31,920 68,600 63,031 97.5% Guatemala 117,000 201,040 289,560 147.5% Honduras 65,342 80,936 175,947 169.3% Nicaragua 41,900 53,018 57,428 37.0% TOTAL 256,162 403,594 586,056 128.8% Source: FAOSTAT and own calculations
Forests in Nicaragua Table 2. Proportion of domestic production from the total cereal consumed between 1970 and 2009 ( hectares) % from national consumption 1970 1990 2009 El Salvador 93.3 85 58 Guatemala 88.9 80.6 60 Honduras 90.4 80.4 49 Nicaragua 97.1 74.2 75 Source: FAOSTAT and own calculations Decrease in forests The expansion of areas for grazing, the advance of the agricultural frontier and the boom in biofuels is leading to constant deforestation. Between 1990 and 2010, forests decreased by about 55,000 hectares per year in Guatemala, 145,000 in Honduras, 70,000 in Nicaragua and 4500 in El Salvador.
Guatemala Enormous pressures on land. Guatemala is the second largest export of sugar, the third largest exporter in palm oil and the fourth largest in bananas in Latin America. Meanwhile, it also ranks first in chronic child malnutrition in the region and sixth in the world. Due to population growth and peasant migration towards the agricultural frontier, the traditional agri-export model, which allowed peasants to produce staple grains for their own consumption, has gradually changed. The historical-structural influence together with the increase in crops, such as sugarcane and African oil palm, along with mining and hydroelectric projects put an enormous pressure on land. The rise in food prices since 2007 along with increased climate variability - a succession of droughts and excessive rainfall - has led to severe food shortages. Despite the constraints, peasants still grow staple grains and the small-scale production of coffee, cardamom and vegetables shows some signs of improvement. Most farms focus on these activities and generate a significant share of the production value as well as employment in agriculture. Access to land There were no major processes of land deconcentration and the only chance for significant land redistribution during the Agrarian Reform of 1952 was swiftly reversed. However, the expansion of the agricultural frontier allowed peasants to access land. Indigenous Peoples Indigenous people represent 65% of all agricultural producers in the country and account for 53% of arable land used mainly to grow staple grains and vegetables, yet they only control 27% of farms. As they mostly grow staple grains and vegetables, there is a strong link between small-scale indigenous farmers and food production. Table 3. Distribution of agricultural productive resources according to ethnic group in 2006 % Non-indigenous % Indigenous % Farms 34.6 65.4 % Total land 73.2 26.8 % Annual crops 47.3 52.7 % Permanent crops 85.8 14.2 % Grazing land 93.4 6.6 Average size in mz (0,7 hectares) 21.4 4.1 Source: ENA (National Agricultural Survey), INE, Guatemala, 2006 Small-scale Agricultural Production Small-scale family farming is hugely important: it accounts for 97% of farms as well as just over a third of agricultural land, and it provides 52% of rural employment.
Honduras Between 1970 and 1980 a process of agrarian reform took place, favouring access to land for many segments of the peasant population. Some groups became part of capitalised selforganised cooperatives that introduced the cultivation of oil palm into the country. However, they started losing their land to larger investors who re-launched the expansion of oil palm and of sugarcane thereafter. This type of transfer, which then led to land concentration, was the result of land acquisition, much of which is still questioned today by farmers organisations and by the National Agrarian Institute itself. From 1990 onwards, the state s agenda changed substantially and the private business sector directly or indirectly took over the control of the best parcels of land belonging to groups of peasants. There was a decline in domestic capacity to produce staples while poverty remained very high - Honduras has the largest rural population in Latin America. The area used for growing staple grains per capita fell by 18% between 1990 and 2010. Food producers could not keep up with the growing population, thus leading to tensions in terms of food security. Traditional export crops (coffee, sugarcane and palm oil) increased, whereas there were cuts in non-traditional crops (vegetables and fruit), which accounted for 35,5 % of agricultural land in 1990 and 45,6% in 2010. Trade liberalisation and increase in food imports In 1990, 80% of cereals consumed in the country were nationally produced. Today s situation is very different: following the momentum gained by trade liberalisation policies and the general opening up to imported goods, less than half of all grains consumed in the country are actually produced in Honduras. The emerging business sectors, such as sugarcane and African oil palm, do not create enough employment to offset the continued population growth. There was a decline in domestic capacity to produce staples while poverty remained very high. Table 4. Agricultural land for staple grains, other crops and areas of staple grains per capita between 1990 and 2010 (hectares) 1990 2000 2010 % of increase 1990-2010 Agricultural Area 862,514 971,440 1,238,957 43.6% Stapel grains 556,563 562,083 674,576 21.2% % 64.5 57.9 54.4 Staple grains per capita 0.11 0.09 0.09-18.2% Other crops 305,951 409,357 564,381 84.5% % 35.5 42.1 45.6 Source: FAOSTAT and own calculations Agrarian Conflicts In 2009, following a powerful peasant initiative, 23 properties in an area of over 20,000 hectares in the Aguan Valley were taken over. Clashes between the landowners private guards and self-organised peasants claimed over 50 lives between 2009 and 2012.
El Salvador The country has a historical profile of high pressure on land and it is the most densely populated on the continent. Land distribution changed following the agrarian reform process that took place in the 1980s and there is currently a legal ceiling of 245 hectares (ha) on the size of property. Nonetheless, in certain sectors such as sugarcane, land concentration remained present via long-term contracts that did not necessarily entail the transfer of property. The county registers The country has a historical profile of high pressure on land and it is the most densely populated on the continent. Farmland has remained stable for some decades now; instead of growing, it has dipped due to growing urbanisation. As the agricultural frontier cannot be expanded, the goal to increase productivity per unit of land is more prevalent than in neighbouring countries. Agriculture makes up 13% of GDP, while employment in agriculture represents 17% of total national employment. Sugarcane has been the fastest growing crop over the last twenty years: while the area used for growing staple grains in 2010 was very close to that of 1990, the area used for sugarcane practically doubled during the same period. Certain procedures in the sugar industry, such as burning the cane, applying herbicides and using large dredges to transport the cane to the sugar mills, are put into practice near the homes of rural and semi-urban dwellers, leading to negative impacts on their health and on the environment. Decrease in rural population It is estimated that in 1990 approximately 2,7 million people lived in the rural areas of El Salvador, while in 2013 it is estimated to have dropped to 2.1 million. The civil war led to intense depopulation, while urbanisation and international migration resulted in less availability of farm labour. Decrease in the production of staple grains There was an increase in staple grains between 1970 and 1990, and national production covered 85% of consumption. Production dwindled thereafter, leading to a strong dependency on imports. Table 5. Percentage of national consumption of cereals 1970-2009 % of Production / Consumption 1970 1980 1990 2000 2009 El Salvador 93.3 85.5 85.0 54.4 57.9 Source: FAOSTAT and own calculations
Nicaragua There were substantial changes in land distribution during the three decades before, during and after the intense agrarian reform that took place between 1979 and 1990. Compared to other countries in the region, where, historically, foreign investors acquired large extensions of land, this was less so in Nicaragua. Notwithstanding, Central American investors were the driving force behind processes of land concentration that focused on livestock rearing as well as on producing African oil palm and sugarcane. National and foreign capital aimed at augmenting tourism, mining and forest plantations also put additional strains on land. The possibility of increasing available farmland remains, thanks to the significant existing agricultural frontier, which had allowed for a surge in farms over the last decades. This has resulted in less pressure on land among the peasant, medium-scale and large-scale sectors, especially in terms of extensive livestock rearing. Unlike neighbouring countries, Nicaragua did not experience a substantial expansion in non-traditional intensive crop farming. Central American investors were the driving force behind processes of land concentration that focused on livestock rearing as well as on producing African oil palm and sugarcane. Keys to land ownership in rural areas Non-registered land Only 17% of land in Nicaragua is registered on the cadastre and demarcation of property depends on the titles the owners of the parcels claim to have. Thus, fragmentation of farms following inheritance or sale generates additional conflicts. Processes of concentration The sectors of African oil palm, sugarcane, forestation, livestock and beach tourism have witnessed several processes of land acquisition by foreign investors, especially between 2000 and 2010. Importance of Indigenous Peoples There were two historical processes relating to Indigenous peoples: the Spanish Crown, and later the Nicaraguan State in 1917, granted land to Indigenous peoples in the Pacific region. This land today is claimed by the Subtiava, Sébaco, Matagalpa, Muy Muy, Mozonte y Jinotega communities, among others, whereby demarcation and titling of land in the Indigenous communal areas on the Atlantic Coast accounts for a quarter of national territory. Advance of the agricultural frontier Over the last decade, the area taken up by farms grew following an expansion of land for staple grains, rural population growth and the consolidation of the Central American regional market. The advance of the agricultural frontier translates into a significant reduction of forest areas.
The struggle for land in the Polochic Valley Mass land acquisition and the signing of lengthy lease agreements soon aggravated tensions between peasants and the project. The Polochic River is born in Alta Verapaz, spans 194 km and flows into Izabal Lake, the largest in Guatemala. This is an area that can support the growth of its population and can even attract migrants, especially from the q eqchi ethnic group. In 2005, the Chabil Utzaj sugar mill was set up in the valley. The owner was the Widmann Lagarde family (close to the former president Oscar Berger). Mass land acquisition and the signing of lengthy lease agreements soon aggravated tensions between peasants and the project. The sugar company changed the river s course, and since then, large areas are flooded every year, thus affecting crops, populated areas and even the ecosystem of Izabal Lake. In early 2011, the conflict became widely known: following the sugarcane crop failure and the peasants demands having fallen on deaf ears, several groups took over the land around the sugar mill to sow staple grains. The deployment of over a thousand police men, soldiers and the company s private security guards unleashed a ferocious repression, the burning down of homes and crops, and the eviction of about 800 families. In June 2011 the Inter-American Commission on Human Rights ordered the Government of Guatemala to ensure the physical integrity of the fourteen communities living in the valley and the implementation of humanitarian measures to be agreed upon with the beneficiaries and their representatives. That same month, the managers of Chabil Utzaj formalised the sale of an 88% stake in the company s shares to the Nicaraguan group Grupo Pellas. In June 2012 the Government pledged to hand over parcels of land to some of the plaintiffs, but the problematic situation remains unsolved. Agrarian structure of a landmark rural conflict According to the Agricultural Census of 2003, the farms in the municipalities of Panzos (known as the granary of Guatemala ) and El Estor were on average 4 mz in size (mainly used for growing staple grains and vegetables), while the average in Guatemala was 2,4 mz. That explains why the annual production of maize reaches 5 quintals per capital, while the average in Guatemala is a mere 1,9 quintals. The areas used for growing staple grains in Panzos and El Estor make up approximately 24,000 ha. Following the initiatives that radically changed the way land in the valley is used, thousands of hectares are now covered in sugarcane and African palm oil, which has jeopardised family farming for personal consumption and the generation of monetary income from the sale of surplus. Meanwhile, the international price of sugar soared from US$10 per quintal in 2000 to US$28 in 2011. Table 6. Population, production of maize and quintal per capital, Polochic Valley and Guatemala Variables Panzós El Estor Valle Polochic Guatemala Population (2000) 44,770 42,984 155,887 12,405,000 Total Maize (Q) (2003) 230,982 207,211 575,106 23,276,480 Maiz per capital (Q per year) 5.2 4.8 3.7 1.9 Polochic Valley: municipalities of Panzos, El Estor, La Tinta, Tucuru and Senahu. Source: Agricultural Census 2004 and Population Census 2002
Comments Eduardo Baumeister s book revisits the problematic issue of land in Latin America and sparks a renewed interest in a subject that had been sidelined in several countries: the concentration of agricultural land ownership, now explicitly referred to as land grabbing. This concept pushed politicians, academics and social movements in the Latin America region to assess their own internal processes of change in control over land. 1 In many cases, they rediscovered that there had indeed been a land rush over the last two decades, particularly evident from the concentration of national and foreign land ownership. This process is complex and differs from country to country, but there seem to be two common features: the influence of the foreign market (most concentrated land is used for export crops) and the significant presence of investment corporations. It is worth noting that although processes of agrarian reform did take place in three of the four countries analysed in this study - El Salvador, Nicaragua and Honduras (not in Guatemala) - irrespective of how partial they were, today they still face the problems of land ownership concentration. This book is a must not only for those interested in agrarian issues, but also those concerned by the main processes of social and economic change in the region. Fernando Eguren Chairman of Centro Peruano de Estudios Sociales (CEPES) Agrarian structures and power relations in the world are changing at an ever-increasing pace and Central America is no exception to these global trends. Eduardo Baumeister s study allows us to become aware of the extent to which there have been changes in the four countries of the Mesoamerican isthmus. The study explores two major avenues of reflection: on the one hand, the new forms of agrarian and mining capitalism that are taking shape in the region, as epitomised by the world of finance, which leads to increased land concentration as well as dispossession and primitive accumulation at the expense of the commons and of indigenous peoples; and on the other hand, the peasants consolidation or lack of consolidation of power in the face of large-scale production. These two avenues imply that the agrarian reform processes need to be revisited, while evaluating how to regulate changes in the peasant agrarian structures in the long-term, together with generational changes, processes of inheritance and the establishment of young farmers. The challenges are huge: peasant family farming, which has so far always provided food for the people, is now at stake. Michel Merlet Director Association pour l Amélioration de la Gouvernance de la Terre, de l Eau et des Ressources Naturelles (AGTER) 1 See for example Sergio Gómez and Fernando Soto Baquero (editors), Dinámicas del mercado de la tierra en América Latina y el Caribe. Concentración y extranjerización. FAO. Santiago de Chile, 2012.
Agrofuels in Central America (sugar cane) With this publication, Eduardo Baumeister puts on the table the link between equitable access to and control over land, food security and the future of family farming. Backed by solid arguments, he shows that, against the backdrop of growing capitalism through large national and foreign investment, land policies and land distribution are highly relevant for the economic interests of Central American countries, where companies operating in rural areas compete with indigenous and peasant populations for natural resources. Hence, in light of the processes in all four countries included in this study, it is clear that the transformations are ongoing: staple foods are being gradually replaced by export goods, the agricultural frontiers are expanding and taking over forests, multinationals are displacing local populations, emigration is on the rise, remittances from abroad are replacing income from family farming, soils are degraded, land is more expensive but less available, and so on and so forth. However, these changes go beyond the rural sector, as the socio-environmental impact and underlying conflicts affect the country s economy, governance and social peace, and jeopardise the availability of resources and food for future generations. This book invites us to reflect on the sustainability of a development model that excludes small-scale farming, and on the need to act not only at national level, but also at a regional and global level. Zulema Burneo Regional Coordinator of International Land Coalition - Latin America and the Caribbean
About this report This report was prepared by the expert in agrarian issues, Eduardo Baumeister, following a collaboration between the Norwegian Development Fund and the International Land Coalition that aims to complement the efforts made towards actions and debates to promote social justice and the eradication of rural poverty in Latin America and the Caribbean. The full version of this report is available at http://www.landcoalition.org/es/publications The International Land Coalition Mission: The International Land Coalition is a global alliance of civil society and intergovernmental organizations working together to promote secure and equitable access to and control over land for poor women and men through advocacy, dialogue and capacity building. Vision: Secure and equitable access to and control over land reduces poverty and contributes to identity, dignity and inclusion. The Development Fund Norway The Development Fund Norway (Utviklingsfondet) is a non-governmental organisation that supports small-scale farmers in their fight against hunger and poverty. In partnership with local organisations in Central America, Africa and Asia, we support small-scale farmers through sustainable agricultural and climate change adaptation projects, access to markets, sustainable resource management and advocacy. Our vision is a fair world free from hunger. The International Land Coalition Secretariat Via Paolo di Dono 44 00142-Rome, Italy tel. +39 06 5459 2445 fax +39 06 5459 3445 info@landcoalition.org americalatina@landcoalition.info www.landcoalition.org americalatina.landcoalition.org The Development Fund Norway Mariboes gate 8, 0183 Oslo, Norway tel. +47 23 10 96 00 post@utviklingsfondet.no www.utviklingsfondet.no