Impact of land acquisition for large-scale agricultural investments on food security status of displaced households: The case of Ethiopia

Abstract

Food insecurity has been high on the agenda since the worldwide food crisis around the mid-2000 s. Since then, Large-scale Agricultural Investments (LSAIs) have been introduced to respond to this crisis and contribute to national food security. However, under several circumstances, the LSAIs undermined local food security by displacing smallholders from their farmlands. Available researches exploring the impact of LSAIs on the food security status of displaced households are scanty. Therefore, this study aimed to empirically investigate the impact of LSAIs on household food security using survey data collected from 521 sample households from September to November 2019 in two districts in Ethiopia. The sample comprises 49% displaced households and 51% non-displaced households. The propensity score matching method (PSM) was applied to analyze the impact of LSAIs on the food security status of displaced households. The result indicated a significant deterioration of food security among the affected households. The daily food energy intake of displaced households declined by 23% (793 kilocalories per adult equivalent) compared to that of the non-displaced households, which is significant at 1%. Similarly, the annual food consumption expenditure of affected households declined by 40% compared to the non-affected households with a 1% significance level. The finding implies displacement due to the LSAIs has contributed to worsening the food security situation of the displaced smallholders in Ethiopia. Policymakers should reconsider the conventional approach to LSAIs that emphasizes land transfer and compensation and encourage inclusive and empowering methods to reverse the situation. This subject is often neglected and, therefore, can be considered a key value addition of this study.