Competition for water induced by transnational land acquisitions for agriculture.

Abstract

The ongoing agrarian transition from smallholder farming to large-scale commercial agriculture promoted by transnational large-scale land acquisitions (LSLAs) often aims to increase crop yields through the expansion of irrigation. LSLAs are playing an increasingly prominent role in this transition. Yet it remains unknown whether foreign LSLAs by agribusinesses target areas based on specific hydrological conditions and whether these investments compete with the water needs of existing local users. Here we combine process-based crop and hydrological modelling, agricultural statistics, and georeferenced information on individual transnational LSLAs to evaluate emergence of water scarcity associated with LSLAs. While conditions of blue water scarcity already existed prior to land acquisitions, these deals substantially exacerbate blue water scarcity through both the adoption of water-intensive crops and the expansion of irrigated cultivation. These effects lead to new rival water uses in 105 of the 160 studied LSLAs (67% of the acquired land). Combined with our findings that investors target land with preferential access to surface and groundwater resources to support irrigation, this suggests that LSLAs often appropriate water resources to the detriment of local users.