Investment in agriculture is essential for sustainable development, in particular for achieving food security, adequate nutrition, decent employment, poverty reduction and environmental protection. In seeking to attract agricultural investment, many governments and local communities have entered into Agricultural Land Investment Contracts (ALIC). Mindful of the contractual challenges involved and considering the importance of enhancing knowledge of the legal regime applicable to agricultural land investment operations, the International Institute for the Unification of Private Law (UNIDROIT) in collaboration with the International Fund for Agricultural Development (IFAD) have prepared this UNIDROIT/IFAD Legal Guide on Agricultural Land Investment Contracts (ALIC Legal Guide).

This guide provides guidance for producers, governments, legal advisors and civil society on contract farming arrangements, from negotiation to conclusion, including performance and possible breach or termination of the contract. It gives a description of common contract terms and a discussion of legal issues and critical problems that may arise under various practical situations, illustrating how they may be treated under different legal systems.

This guide is primarily intended for private equity and real asset investors seeking to improve the risk profile of their portfolios and maximise their returns by investing in companies that manage their supply chains effectively. It provides information on what to look for and on how to engage with companies on E&S risks in supply chains.

This guide provides a practical framework for identifying and managing risks with regard to stakeholder engagement activities to ensure companies play a role in avoiding and addressing adverse impacts as defined in the OECD Guidelines for Multinational Enterprises. The guidance also includes an assessment framework for industry to evaluate their stakeholder engagement performance and targeted guidance for specific stakeholder groups such as indigenous peoples, women, workers and artisanal and small scale miners.

This guide discusses USAID’s recommendations for best practices related to the due diligence and structuring of land-based investments, with the goal of reducing risks and facilitating responsible projects that benefit both the private sector and local communities. It is designed to help companies identify practical steps to align their policies and actions with international policy consensus on land governance and land rights.

These principles provide guidance on ways to align business objectives with the safeguard of human rights. The principles aim to integrate the management of human rights risks into contract negotiations on investment projects between host State entities and foreign business investors, building on the UN’s Guiding Principles on Business and Human Rights.

This technical guide sets out practical actions for government agencies, civil society organizations, land users and private investors globally to respect and comply with their responsibilities in relation to FPIC. It

• translates principles of responsible land governance and tenure (see the VGGT) into practical mechanisms, processes and actions,

• gives examples of good practice – what has worked, where, why and how, and

• provides useful tools for activities such as the design of policy and reform processes, for the design of investment projects and for guiding interventions.

This Guide provides an entry point to understanding and implementing the principles of responsible governance of land tenure set out in the VGGT for companies involved in land-based investment. It provides a more manageable presentation of the VGGT, along with steps to ensure that a company acts consistently with them and includes thorough due diligence on the tenure rights of project-affected communities.

This Guide is complementary to the Interlaken Group's 'Respecting Land and Forest Rights: a Guide for Companies'. It provides guidance on what companies can do to reduce risk through improve tenure governance in land-based investment, reflecting the principles of responsible governance of land tenure set out in the VGGT. It provides a more manageable presentation of the VGGT, along with steps to ensure that a company acts consistently with them and includes thorough due diligence on the tenure rights of project-affected communities.