scholarly journals Determinants of Informal Land Renting Decisions by A1 and A2 Farmers in Mashonaland East Province of Zimbabwe

2018 ◽  
Vol 10 (6) ◽  
pp. 70 ◽  
Author(s):  
Simbarashe Tatsvarei ◽  
Abbyssinia Mushunje ◽  
Saul Ngarava ◽  
Clifton Makate

Land rental markets are critical in developing economies as they contribute to efficiency, equity and welfare gains to farmers involved under conditions of low transaction costs. Despite lack of policy consistency in Zimbabwe, A1 and A2 farmers have been involved in these land rental markets, albeit in an informal manner. This study sought to establish the determinants of farmers’ decision to take part in these informal markets. A survey was carried out in Mashonaland East province with a sample of 339 households selected through multi-stage sampling methods and data analysed using a bi-variate Tobit model. Results showed that combined together, the proportion of farmers involved in informal land rental markets are as much as those not participating. Determinants of renting-in were identified as gender, household income, permanent labour, cultivated area, tenure certainty, irrigable land size and crop diversification. Factors affecting renting-out decisions were age, permanent labour, irrigable land size and crop diversification and these results are not in any way different from findings from previous studies. The conclusion was that household characteristics and land endowments factors were strong in decisions to rent-in land while land endowments factors were dominant in decisions to rent-out land. Any future considerations for formalising land rental markets should consider these important factors having a bearing on land rental decisions.

2018 ◽  
Vol 10 (6(J)) ◽  
pp. 70-78
Author(s):  
Simbarashe Tatsvarei ◽  
Abbyssinia Mushunje ◽  
Saul Ngarava ◽  
Clifton Makate

Land rental markets are critical in developing economies as they contribute to efficiency, equity and welfare gains to farmers involved under conditions of low transaction costs. Despite lack of policy consistency in Zimbabwe, A1 and A2 farmers have been involved in these land rental markets, albeit in an informal manner. This study sought to establish the determinants of farmers’ decision to take part in these informal markets. A survey was carried out in Mashonaland East province with a sample of 339 households selected through multi-stage sampling methods and data analysed using a bi-variate Tobit model. Results showed that combined together, the proportion of farmers involved in informal land rental markets are as much as those not participating. Determinants of renting-in were identified as gender, household income, permanent labour, cultivated area, tenure certainty, irrigable land size and crop diversification. Factors affecting renting-out decisions were age, permanent labour, irrigable land size and crop diversification and these results are not in any way different from findings from previous studies. The conclusion was that household characteristics and land endowments factors were strong in decisions to rent-in land while land endowments factors were dominant in decisions to rent-out land. Any future considerations for formalising land rental markets should consider these important factors having a bearing on land rental decisions.


2021 ◽  
Author(s):  
Kwabena Krah ◽  
Annemie Maertens ◽  
Wezi Mhango ◽  
H.C. Michelson ◽  
Vesall Nourani

Author(s):  
Elisabetii Sadoulet ◽  
Rinku Murgai ◽  
Alian De Janvry

2015 ◽  
Vol 7 (3) ◽  
pp. 484-509 ◽  
Author(s):  
Jianying Wang ◽  
Kevin Z. Chen ◽  
Sunipa Das Gupta ◽  
Zuhui Huang

Purpose – The farm size-productivity relationship has long been the subject of debate among development economists. Few studies address this issue for China, and those that do only with outdated data sets poorly representing the current situation after the past decade of rapid change, which includes the rapid development of land rental markets, village labor out-migration and use of farm machines. Meanwhile, many studies have researched this relationship for Indian, which is undergoing similar changes except for the development of active land rental markets. The purpose of this paper is to measure the farm size-productivity relationship under the situations of rapid transformation in China and India. Design/methodology/approach – Based on the data of 325 Jiangxi and 400 Allahabad rice farmers in 2011, the survey covered multiple plots of each household in one/multiple growing season(s). The authors use the production function approach and the yield approach, and control for farmland quality, imperfect factor markets, and farm size measurement error, to identify the farm size-productivity relationship. Findings – The regressions show that land yields increase with plot size both by season and over the year in China. This may be one of the reasons that farm sizes are growing in some areas. In India, however, the inverse farm size-productivity relationship is observed by the study, despite recent changes. Moreover, land yields increase with farm machine use in both China and India. This result contributes to the debate over whether mechanization improves yields or just expands the land frontier. Originality/value – The paper empirically estimates the farm size-productivity relationship under rapid agrarian transformation in both China and India based on a unique data set collected by the authors in a detailed primary survey. The paper considers measurement error in the analysis, which adds values to this type of analysis.


2020 ◽  
Vol 30 (1-2) ◽  
pp. 226-243
Author(s):  
Krishna Sharma ◽  
Binoy Goswami

Using data collected from the central and western parts of Nepal plains, we examine the extent of rental market of pump-sets therein, and identify the factors affecting the decision of farm households to purchase the service of pump-sets. Further, the article investigates whether cropping intensity and extent of crop diversification for non-users, owner users and rental users of pump-sets are significantly different. Our analysis suggests that there exist rental markets of considerable sizes in the field study locations. Access to extension service, proportion of high yielding varieties in total cropped land, availability of pump-sets, caste and locational characteristics have been identified as the determinants of the decision to purchase the service of pump-sets. Cropping intensity and extent of crop diversification for the rental users have been found to be higher than those of the non-users and the owner users, and this finding establishes the positive impact of the rental market.


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