Factors influencing farmers' preference for farmland consolidation in Nepal: Evidence from randomized conjoint experiment

Abstract

CONTEXTIncreasing fragmentation of farmland remains a critical agriculture development challenge around the world, specifically in developing countries. Farmland consolidation is one of the most efficient policy instruments, extensively implemented across the world, to deal with the critical issues in agriculture sector associated with farmland fragmentation. Despite this prospect there is a vast gap in literature exploring factors influencing farmers' preference for farmland consolidation in developing countries like Nepal. OBJECTIVEThis research aims to identify the factors influencing farmers' preference for farmland consolidation through a randomized conjoint experiment. METHODSFor a randomized conjoint experiment, five attributes related to farmland consolidation, i.e., methods of consolidation, development of roads and irrigation, the expected increase in agricultural income, minimum area of farmland for consolidation, and provision of service, with 3–4 levels were identified through literature review, expert consultation, and pretesting. The average marginal component effects of each randomly assigned attribute's levels are estimated. Respondents' willingness to accept farmland consolidation is also assessed based on the choice led by the expected increase in agricultural income. RESULTS AND CONCLUSIONSSixty-five percent of respondent farmers preferred the alternative policy to consolidate farmland over the status quo. The expected increase in income and the development of roads and irrigation through a joint effort of the government and farmers influence farmers' preference for farmland consolidation positively. In contrast, farmers' preference for farmland consolidation is negatively affected by a bigger area of farmland consolidation. The method of farmland consolidation and provision of service does not have a significant impact on farmers' preference for farmland consolidation. Respondent farmers are willing to accept a yearly increase of USD 362 per hectare to consolidate their farmland. SIGNIFICANCEThis paper suggests any policy targeted for farmland consolidation to focus on ensuring the increased income for the participant farmers mainly through shared effort to develop a connection road and irrigation infrastructure contributing to efficient production practices in the consolidated farmland. The farmers would consolidate their land if their yearly farm income increased by USD 362. Since majority of Nepali farmers are smallholding farmers, they would not prefer the larger size for farmland consolidation as it involves many farmers or require high capital to procure land through buying/selling of land. These policy implications could be extended to other developing countries which are experiencing increasing farmland fragmentation and having the similar socioeconomic context.