• A new land reform law passed in April lets small farmers reclassify their land so that it can be used as collateral.
• But it also means they would lose protection from land seizure, which could allow big businesses to more easily buy up the land, some critics of the law say.
• The legislation could also help large landowners divide and sell their properties more easily, potentially leading to development and forest clearing in an area with one of the highest deforestation rates in the region.
• Last month, Indigenous groups started a march from the department of Pando to the capital, La Paz, to pressure the government to revoke the law.

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A new land reform push in Bolivia meant to expand small farmers’ economic opportunities has sparked protests, with critics warning the law could put rural and Indigenous families at risk of eviction and accelerate the expansion of large-scale agribusiness.

The law, passed in April, lets farmers reclassify their land so that it can be used as collateral, allowing them to access bank loans and establish businesses. But doing so means they would forfeit their right to regulations meant to protect them from seizure, which could allow big businesses to more easily buy up land, some advocacy groups say.

Backlash has been especially strong in the departments of Santa Cruz and Beni, where large-scale soy and cattle operators have contributed to some of the highest deforestation rates on the continent.

“Bolivia needs policies that strengthen rural development with equity, not rules that weaken rights, erode agrarian institutions, and put at risk the territorial basis of life,” a coalition of 11 environmental and land development groups said a March statement after the law was approved by the Chamber of Deputies, the lower house of the national legislature.

Bolivian law establishes different categories for different kinds of properties and their uses. “Small” properties aren’t considered an economic asset but rather a source of subsistence for the owner and family — a “patrimony” that’s exempt from being divided up or seized by the government.

“Medium” properties involve the production of goods with hired workers, and can be transferred, sold and mortgaged. Owners have to demonstrate the land’s socioeconomic function with production records, contracts with salaried personnel, and livestock registration, among other things.

Failing to meet the requirements can lead to partial or complete seizure by the state.

The new law makes it easier to reclassify properties from small to medium, requiring only a written request and a sworn declaration of interest in changing the land use. The National Institute of Agrarian Reform is supposed to complete the request for free within 10 days, according to the law.

The change has been billed as way to provide small landowners with access to credit, leveraging their properties for loans and mortgages that can be used to buy farming equipment or other essential business assets.

Indigenous people and farmers arrive in La Paz, Bolivia after days of marching. (AP Photo/Juan Karita)

“The law grants freedom of decision,” Óscar Mario Justiniano, the minister for rural development, said at an event in Santa Cruz last month. “It’s voluntary, and allows producers to evolve and access the financing needed to modernize and improve their production.”

But critics say it actually strips the landowners of protections against eviction and will eventually lead to even more deforestation by agribusiness.

“These policies run contrary to the sovereignty and dignity of the Bolivian people, with the main objective of modifying the current land ownership regime, which is the result of our struggles and mobilizations, in order to reconcentrate it into a few hands,” said several Indigenous and rural organizations in a statement this month.

Last year, Bolivia had the second-highest level of tropical primary forest loss in the world, approximately 620,630 hectares (1.53 million acres). Much of it occurred in eastern departments like Santa Cruz, where the Chiquitano dry forest and Gran Chaco experienced fires and aggressive land buying by industrial cattle ranchers and soy farmers.

Other critics of the law argued that most small property owners live on unproductive land and probably won’t see the need to convert it to the medium classification.

Instead, the law could benefit owners of large properties who have registered sections of their land as “small” to avoid state oversight and taxes. The law allows them to more easily change the classification should they decide to divide or sell it. That could allow large-scale agribusiness to purchase land more quickly, resulting in deforestation to create space for cropland, critics said.

Police work to put out a fire in the Chiquitania forest on the outskirts of Robore, Bolivia, (AP Photo/Juan Karita)

“Effectively, there’s a risk that the land market will become more dynamic and new ways of land grabbing, of consolidating, will arise,” Juan Pablo Chumacero, director of the TIERRA Foundation, a rural development NGO in Bolivia, told Mongabay.

Last month, several Indigenous communities began marching from the northern Pando department, where agribusiness has also been a primary driver of deforestation, to the capital, La Paz, to pressure the government to revoke the law. Around 100 people were reportedly marching, with more joining every day.

They said the law is unconstitutional because it was passed without free, prior and informed consent (FPIC), a process in which Indigenous communities must approve development that would impact their land.

Last month, several lawmakers formally challenged its constitutionality via lawsuit, citing the lack of FPIC.

The Confederation of Indigenous Peoples of Eastern Bolivia (CIDOB) also signed an agreement to amend the law to “balance the protection of Indigenous territories with the rights of agricultural producers,” according to the rural development ministry.

A third effort is underway to get rid of the law entirely, with the left-wing populist Alianza Popular caucus introducing a bill to repeal the legislation altogether, citing the demands of Indigenous groups.

None of these efforts have been approved yet, and the law currently remains in force. After the agreement between the government and CIDOB, the march reportedly began to dissipate. But others said they weren’t happy with the agreement and are holding a vigil in the capital until the law is officially repealed.

“We’re not asking for favors,” said Faifer Cuajera, a leader of farmers from Pando. “They have to do their job. They have to repeal [the law]. We won’t give up the fight.”

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