Wow...this sounds suspiciously like 'nationalization' of property (actually, thats precisely what it is.) I think we all know what that leads to...
First, the socialists will confiscate foreign-owned land and large estates.
Next, the small farmers will be 'encouraged' to join government-owned cooperatives and to sell their foodstuffs only to government-owned warehouses.
Finally, the small farmers who fail to become government serfs will be called 'CIA agents, counterrevolutionaries, and petit bourgeois' and persecuted.
See Soviet Union, Cuba, etc.