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05-10: Impact of Land Markets Changes
Impact Of Land Rental on Smallholders’ Commercialization Evidence From Northern Ethiopia: A Panel Data Analysis
Norwegain University of Life Sciences, Norway
The purpose of this study is to examine whether participation in the land rental market from the demand side affects participation and degree of participation in the output market of smallholder farmers. We use a correlated random effects probit and tobit models to analyze the effect of area rented in on participation and degree of participation in the output market as crop seller. We apply a control function approach to control for possible endogeneity associated with access to area rented in. Results show that for a change of area rented in by one ha, the likelihood of participation in the output market as a crop seller increased by about 8 % and degree of participation increased by about Birr 602-616 per household per year. Thus, promoting land rental market appeared to have a more robust impact on smallholder commercialization in a land-scarce economy.
Grassland Rental Markets And Herder Technical Efficiency: Ability Effect or Resource Equilibration Effect?
Renmin University of China, China, People's Republic of China
To explore whether grassland rental markets improve herder technical efficiency, to what extent and how, this study applies Metafrontier-DEA approach by employing field data collected from 416 herder households to examine the impacts of herder participation in grassland rental markets on their technical efficiencies. Results show that herders involved in the grassland rental markets can increase their technical efficiency by 2.75%. Compared with the autarky group, the lessors increase their efficiency by 3.36%, and the lessees increase efficiency by 2.76%. No significant efficiency difference is found between the lessors and the lessees. We conclude that grassland rental markets improve herder technical efficiency mainly through resource equilibration effect rather than ability effect. This suggests that under the current institutional environment, more attention should be paid to normalize and guide the grassland rental markets rather than to address land transfer from the less-able to the more-able producers.
Assessing Livelihood And Environmental Impacts Of Secure Access To Land For Landless Youth Under The Ethiopia Sustainable Land Management Program
The World Bank, United States of America
An innovative land tenure intervention being piloted under the World Bank supported Sustainable Land Management Project II provides landless youth with secure access to land. Under this initiative, degraded communal land is allocated to landless youth who undertake soil and water conservation measures to halt the degradation process and return the land to a productive state. Early evidence from field reports, interviews, and anecdotal accounts have been positive, reducing youth unemployment and migration, increasing stewardship, while boosting climate resilience and carbon storage. However, sound empirical evidence is lacking and further analysis is necessary to justify scaling up. To help fill the information gap necessary before making a recommendation on the appropriateness of scaling up this activity, a more structured approach to evaluate the impact of the intervention is needed.