Land, development and contract farming on the Guatemalan oil palm frontier

Abstract

Integration of smallholder agriculture into oil palm production schemes has been advocated as a strategy for rural poverty reduction in the global South, including Guatemala, where the crop had been promoted through a contentious government programme. This study, set in Guatemala’s northern lowlands, challenges the official narrative that smallholder oil palm cultivation catalyses rural development and deters peasant land sales. Results indicate that oil palm expansion is accelerating land sales and provides minimal benefits, namely non-inclusive and precarious jobs. The host community is becoming increasingly susceptible to global market volatility, as oil palm puts pressure on subsistence farming and eliminates other livelihood options.