Effect of large-scale land acquisition by domestic and international entities on farm investment in northern Ghana

Abstract

Rural households remained the access-marginalized demographic in Africa despite massive land rushes by both domestic and foreign enterprises. As a result, investment decisions made by agricultural households are affected. To resolve this issue, a study that examines how exposure to large-scale land acquisition (LSLA) impacts people's agricultural investment decisions is required. Using data from 664 households selected using a multistage sampling technique, we examined the nexus between LSLA under local and foreign organizations and short-term investment (STI) and long-term investments (LTI) in land-improving measures. The results revealed that although LSLA under domestic and foreign entities tends to have a negative and statistically significant impact on the probability of LTI, it has a positive and significant impact on the probability of doing so for STI. The results also showed a simultaneity between LSLA and farm investment. Thus, giving farmers legal ownership safeguards them as they undertake LTI. To encourage household investment and reduce further exposure to LSLA, improvements in legal land ownership can be made.