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05-11: Land Rental Markets and Structural Transformation
Land rental markets participation and its impact on fixed investment and household Welfare: Evidence from China Apple Production Sites
1Northwest Agriculture & Forestry University, People's Republic of China; 2Michigan State University,United States of American
To identify the determinants of affecting farmers’ land rental decision and quantify the effect from renting in land on households’ investment and economy welfare, original data from two specialized apple production sits of China are applied. By analyzing the access of land, labor, credit and insurance markets together, results indicate that economy of scale, efficient credit and insurance supply, laborsaving cultivation technology adoption and the motivation of reducing land fragmentation are the main forces to encourage households renting in land. Fixed investment improves with farm scales expanding and more access to credit and insurance. Renting in land from market will produce obvious welfare gains, including household agricultural income, total income and family expenditure.
How do land rental markets affect household income? Evidence from Rural Jiangsu, P.R. China
1Wageningen University, Netherlands, The; 2Nanjing Agricultural University, P.R. China
The development of land rental markets in developing countries attracts much attention, but little is known about its impact on household incomes. This study empirically examines the effects of land rental decisions of farm households on their income and income components, i.e. farm, off-farm and transfer income, taking into account potential endogeneity of land rental decisions. Rural household survey data for 1,080 households in 128 villages in Jiangsu Province, China are used to estimate these effects. Quantile regressions are used to examine to what extent effects differ between income groups. Results indicate that lessee households generate higher total income as compared to autarkic households, in particular in the lower income groups, although they earn higher farm income throughout the entire farm income distribution. No significant differences in off-farm income between transacting households (i.e. lessee households or lessor households) and autarkic households are found. Transfer income of lessor households is significantly lower than those of autarkic households, especially those in the low-income quantiles.
Inheritance System, Tenure Security And The Functioning Of Land Rental Markets in Rural Pakistan
1University of Guelph, Canada; 2International Food Policy Research Institute (IFPRI)
This paper provides empirical insights into the manner by which rural farmers in Pakistan access farmland. Our results suggest that approximately 86% of owned land is inherited, 13% is purchased and the remaining 1% is acquired through other means (e.g., gifts, illegal settlements). Moreover, we review the different ways ownership is documented. We find that variation in formal documentation is not associated with variation in perceptions of tenure security in the case of inherited land. An important component of our paper is an exploration of rental arrangements. We use the Pakistan Rural Household Panel Survey round 3.5 conducted during 2014-2015. Forty percent of the survey respondents rent-in farmland. Of these households, forty-eight percent are landless Hence, rental arrangements are an important pathway by which land is redistributed to enable agricultural production. Using regression analysis, we examine the influence of key endowments – e.g., land ownership – on the redistribution of land for production purposes. Our findings generate a better understanding of the relationships between formalization and perceptions of land tenure security as well as land ownership and participation in rental arrangements. Our findings are relevant to ongoing efforts to improve land governance and agricultural production in rural areas of Pakistan.
Effects of Land Rights Certification on Rural Credit Market and the Market for Land Transfers ---- Evidence from China
1Nanjing Agricultural University, China; 2Monash University, Australia; 3Research Center for Rural Economy, Ministry of Agriculture, China
This paper investigates empirically the effects of land rights certification reforms on the rural market for credit and the market for rural land transfer in China. We isolate the effect on land rights certification by comparing rural households from land rights certification pilot villages and non-pilot villages. A Difference-in-differnces approach using yearly panel surveys data from Ministry of Agriculture’s Fixed Rural Observation Point System suggest that land rights certification significantly improved rural households’ access to formal credit and reduced their reliance on informal loans. At the same time, land rights certification substantially increased households’ demand for credit. However, our DID approach seems to suggest that the increased land rental market activities in rural China were not attributable to the land rights certification reforming.