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I have to admit that an interesting issue arises here. If a small group took control of a piece of land for a permanent agricultural settlement, how would THEY justify their GROUP ownership?

Maybe this is where something like a limited right of first occupancy could be invoked. I agree. But I do NOT agree that first occupancy could generate an exclusive, extensive, permanent right of ownership.

I agree with John that some sort of obligations to the common good would qualify the rights of the group. If there was no land for other groups, or no water for other groups, then they would have to share necessary natural resources. That probably wouldn't arise, but some sort of qualification like that would always be attached to their property rights. And eventually, as population grew, some new system would probably have to be created to ensure the welfare of all.