Smallholders, by contrast, produce at a higher cost. They are often very productive by hectare, since they maximize the use of the soil, and achieve the best complementary use of plants and animals. But the form of agriculture that they practice, which relies less on external inputs and mechanization, is highly labour-intensive. If smallholders compete in the same markets as the large farms, they lose. Yet they render invaluable services, in terms of preservation of agro- and biodiversity, local communities' resilience to price shocks or weather-related events, and environmental conservation. The arrival of large-scale investment in agriculture will alter the relationship between these worlds of farming. It will exacerbate highly unequal competition. And it could cause massive social disruptions in the world's rural areas.
