sclmlw avatar
Mark Webb

@sclmlw

Associate Director of Clinical Research in oncology; also working on development research through land reform.

https://www.linkedin.com/in/mark-webb-phd-09489148/
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$0 in pending offers

About Me

My day job is in development of new cancer treatments. Our company is developing treatments to toxicities of cancer drugs that will make cancer treatment less terrible, and allow patients to stay on full treatment doses.

I'm also building a project to explore land reform through direct land purchases. I plan to redistribute land from landowners to farmers. If we can demonstrate efficacy quantitatively, this will make the case for land reform efforts much stronger. It will allow those working in the development space to quantitatively judge what kind of return they can expect on future land reform efforts.

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sclmlw avatar

Mark Webb

24 days ago

Final report

Description of subprojects and results, including major changes from the original proposal

I'm closing the project here, but not my interest in land reform. I'm still working on finding a strategy that could help drive structural change. From my interviews and research, it appears the landownership situation across the developing world is heterogeneous. There are certainly many situations like those described in the proposal. Many of those are in larger countries, like Kenya, where it would be difficult to demonstrate national-level impacts on something like GDP growth.

Many smaller countries, or communities within countries, are a mix between a landowning elite and very small farms that are divided up too small for a single family to make do on the land they own.

I encountered farmers who were very entrepreneurial, and some who owned small amounts of land. They still struggled, mostly due to uncertainty in crop yields, and had to rent additional land to make ends meet. An area might be good for growing a cash crop, but also be prone to flooding. Markets in the US might offer crop insurance, but these farmers don't have institutions that make that possible.

Farmers spent a large amount of time and money on irrigation, which was the largest improvement they were generally willing to make on the land. Some of this irrigation was recoverable, but much of it was not. I got a lot of enthusiasm about the idea of land ownership. Much of the expected benefit was that it would mean investments into irrigation could last for multiple years. The other main benefit was the ability to grow crops that require a longer investment. However some farmers are already able to get around this by renting from close friends and neighbors who will guarantee a multi-year leasing arrangement.

I'm no longer convinced that focusing on a small nation is required or desirable, though I've not ruled it out.


sclmlw avatar

Mark Webb

8 months ago

Progress update

Progress so far...

Thanks to everyone who has expressed interest in this project since its inception. I've run into some issues unrelated to the project that have stalled efforts, so I haven't seen as much progress as I'd hoped by this point. Still, here's where I'm at so far:

Contacts in the Lesser Antilles: No luck so far. Still working on this and on expanding my scope of contacts. The biggest problem I'm seeing is that a lot of the poorest farmers aren't connected very well to the internet (including the farmers discussed below, who did not have access to internet).

Backup Plan Interviews: I've developed some contacts in Honduras who allowed me to do some interviews with local farmers of varying degrees of prosperity. I'm going to try and keep some of the details vague so as to not accidentally give one of our gracious small farmers accidental fame. These interviews helped me get a better perspective about some of the local conditions and infrastructure surrounding farming. Apologies that these narratives aren't able to cover the full scope of our discussions.

Alice's story - The first lady I interviewed owns some land and rents some more land in order to make ends meet. Let's call her Alice. Alice is lucky, in that she found an older man (Bernard) whom she can do long-term land rentals from, so she has a lot of control over land-related farming questions. Bernard is getting older and can't work the land, so she pays him a reasonable rate and knows she can keep renting the same land over and over again. Apparently in Honduras this is often not the case, dramatically limiting the kind of improvements you can make on the rented land. Alice knows she has an opportunity to plant cash crops, and she has a plan. She put $4k-$5k into irrigation, rent, and planting in a gamble that the price of plantains will stay high and the yields will ("by the grace of God") return around $12,500 in sales after about a year. (Most of the overhead cost is from renting the land.) If the crop isn't successful (due to flooding, rot, or market shifts), she could be ruined - though she'd still get by from her side-gig growing sweet potatoes on the land she owns outright. By the standards of many of her neighbors Alice is doing well for herself, especially with the prospect of earning north of $8k net profit from the plantain harvest.

If Bernard dies or refuses to continue renting from her next year (he's a friend, so this is less likely) Alice will have to pull the irrigation pipes after the first plantain harvest. She'd lose all the drip infrastructure, which is a cost she'd just have to eat. So long as the situation with her friend continues, where she rents the land and he makes a profit from renting out the land he can no longer work, she will continue to be able to capitalize off of this situation.

A few observations from this case study:

  1. This doesn't look a lot like the kind of farming situation I'm trying to focus on. Indeed, Alice's access to land appears to have made her relatively well off financially, compared to her peers.

  2. One concern about land redistribution that has been raised is that a farmer will just sell their land back to the landowner and be back in the same situation as before - or that they might sublet their farm in turn, perpetuating the cycle. My hypothesis was that with smaller farms this strategy is untenable. Here, we see that farmers who own a smaller farms, like Bernard, will sublet their land. However, in this case, Bernard isn't trying to establish a vassal relationship - probably because he can't. He doesn't have enough land even for Alice to work on her own. He doesn't have enough market power to monopolize the land market. And he's a close personal friend of Alice, such that he trusts her to make her part of his 'retirement' plan.

  3. Alice was knowledgeable and animated during our discussion. She is very entrepreneurial and passionate about farming. This was a feature of many of the farmers I talked to. They often have to project market prices vs. long-run weather conditions to determine whether they'll be able to make it this year. At least for those I interviewed, these weren't lazy subsistence farmers. Desperate circumstances, were more likely to promote creative, hard-working farming strategies.

  4. Given the low cost of farm inputs from low-income countries compared to US agriculture, and how much success for these farmers depends on minor shifts in market prices, I'm less motivated by the 'buy local' campaigns than I was before I'd spoke to these farmers. I'm not trying to be controversial here, and am willing to be persuaded otherwise, but after talking to Alice and others I can see the other side of this transaction. Perhaps it's better to buy my plantains and sweet potatoes from wherever is cheapest, as opposed to a local farmer in my area (which isn't very hospitable to farming in the first place).

Carl's story - Carl is a corn/bean farmer who is involved in his local politics. He works closely with the mayor and helps identify which farmers are most in need of some of the aid they get from various charitable/development organizations. Often this comes in the form of additional fertilizer. He says the people who most often need help are the ones who don't own their own land, but who have to rent. Most people rent, and most of them rent from a large farm that used to be owned by the Chiquita company back when they were allowed to own land in Honduras. Apparently it's now mostly used to grow sugarcane, rented out to a large number of small, semi-independent farmers.

Carl is doing okay for himself. He rents about 4-5 hectares (they use a unit called "manzanas", which are 0.7 hectares or about 2.5 acres). Sometimes Carl grows watermelon, which pays a lot better per manzana than corn, but there's a huge problem with local petty theft and rot/plagues. The theft is mostly local kids (like what Merry and Pippin were doing when we first meet them in the LoTR movies), not a large percentage of the crop. The plagues can be controlled with chemicals, but if you're not consistent you can lose a whole crop.

Observations:

  1. Neither Carl nor Alice reported any restrictions on land use as renters. I think this is likely who I was talking to, or possibly a feature of Honduras' land market. A lot of the 'restrictions' seem to be self-enforcing. You're not going to plant something in an area where it couldn't grow, so if you're renting a swamp, you'll plant different crops than if you're renting a hill. Still, this is different from some of my interviews from other countries (like in Kenya or the Philippines) where farmers were heavily restricted in what they could plant by the local landowner.

  2. Both of these farmers emphasized that they live in close-knit communities. Everyone knows who is doing worst off, and people come together to help them out. There's a lot of international aid involved, and that's often already part of each farmer's calculation for how they plan to make money each season. We discussed specifics (dollar amounts, acreage, etc.) in each of our conversations. Both farmers had a plan for making money this season, had experiences they'd implemented from prior years, and understood the risks involved.

  3. Irrigation is a big deal, and a big deadweight cost for farmers in Honduras - both in terms of labor and materials. Unlike in areas where farmers use the same land for years on end, in Honduras farmers can't rely on renting the same land from one season to the next. This means they spend a lot of money on irrigation equipment, and both farmers noted that part of those systems (namely the drip system) has to be abandoned every year. This drove up costs, though for renting farmers the largest single cost was still the land rental cost (by a wide margin).

A word about the charitable organization I was working with: They were very interested in and receptive to the idea that land is an issue. They said they'd plowed through dozens of possible metrics as ways to help the farmers they're working with, but that they'd never considered land until now. When they started asking their farmers about land use and land rights, they got a LOT of positive feedback. I think this message resonates with the many good people trying to do sustainable economic development work. Even so, it's not immediately clear what they can do with the problem of land distribution other than, "land is a big deal", so there's a possibility nothing comes of simple awareness.

Next steps:

I'm working on identifying a good community for a land reform project. Although the people I talked to in Honduras were very receptive to this idea, and I think it would work well for them, I'm not convinced the improvements would be legible. Indeed, many of the features I identified in interviews across other nations were not present in Honduras.

Why did I shift to Honduras, when I was clearly focused on smaller island nations in my earlier post? Mostly this is a case of 'looking under the lamppost because that's where the light is'. I'm still working on developing contacts in the target regions.

sclmlw avatar

Mark Webb

about 1 year ago

@Mio

  1. Will capital flow out of the country? Liquid capital will almost certainly flow out of the country. Many people will likely use the capital infusion to migrate out of their home low-income country. (Based on the interviews I've done this is what I'd predict.) However this is potentially not a bad thing. One of the biggest reasons politically-driven land reform fails is because landowners have a strong incentive to reassert their interest in the land (which government forced them to relinquish). So if we observe emigration, from the island, it's a good bet the former landowners aren't going to try to undermine the project politically.

  2. I am always interested in partnering with people. If you have connections, please let me know. Or you can just suggest "you should reach out to so-and-so" because I'm not shy about a cold contact. I have some relationships in the academic realm, and have gotten great feedback from them. My sense is that there isn't enough money in academia to make something like this happen through academic funding. If you know an organization point me their way and I'll write the grant.

  3. This has, so far, been my biggest struggle working in the Lesser Antilles. There's just not a lot of people in/from those islands total, so it's hard to connect. While I'm working on that, I'm also working connections in other Central American countries. I'm working on submitting an update in the next week or two on some great boots-on-the-ground contacts I've made there, and the wealth of information we're getting from interviews. Lots of positive feedback from tenant farmers about the project.

  4. I'm digging into the history/culture at the moment, as well as following news and other developments. Haven't found anything specific, sorry.

sclmlw avatar

Mark Webb

about 1 year ago

@prudentj This is the current place to go for updates. I can't promise any news in the offing, but if you want to be more directly involved let me know.

sclmlw avatar

Mark Webb

about 1 year ago

@saulmunn This is a good concern, and one that I've been pondering for some time. Part of why I wanted to start purchases from current landowners, instead of buying land on the open market, is to specifically avoid driving up property values. However, as you suggest if people know there's someone going around buying all the land this will encourage holdouts - which could defeat the whole redistribution project.

One mitigating factor is that I don't think we need to buy 100% of the land to help propel a country down the development path. I'm not sure yet what percent of the land we'll need, but a significant percentage of the tenant farmers will likely be able to transition toward industrial or other non-farm work without us having to buy the land directly.

A concern with this is that landowners who hold out too long may actually have the opposite problem once we no longer need to use land transfers to spur economic growth: that having missed their chance to sell for land transfers, farmland values may not equal what they could have gotten from us. Hopefully, economic growth will make that land valuable for other reasons by that point, and they will not feel that the project has harmed their financial interests.

A big open question is what percent of the land would need to be part of the land transfer to drive self-sufficient economic growth. If we knew this going in, we could start by redistributing that percentage and avoiding the market distortion from the outset ... in theory. In practice, I imagine it'll be a lot more messy and we won't know how much so until we encounter these problems in the real world.

sclmlw avatar

Mark Webb

about 1 year ago

Does this project need additional funding beyond what Scott contributed? Yes and no.

To get started, no. I'm going to be using the ACX grant to work out the logistics and get a dollar amount for buying a first farm.

Once I've identified an opportunity, I will need additional funding to make the first farm purchase. I'll be seeking additional funding once I get to that point. If you're interested in getting involved at that level, please let me know. I'm considering crowdfunding efforts, along with other potential sources of funding.

Transactions

ForDateTypeAmount
Manifund Bankabout 1 year agowithdraw5000
Study land reformabout 1 year agoproject donation+5000