Impact of Land Use Rights on the Investment and Efficiency of Organic Farming

Muhammad Waqar Akram,Shahla Andleeb,Umair Kashif,Khalil Ur Rehman,Wang Hongshu,Ayesha Mehmood,Nida Akram

doi:10.3390/su11247148

Muhammad Waqar Akram, Shahla Andleeb + Show 5 more

Open Access

https://doi.org/10.3390/su11247148

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Abstract

This study investigated the impact of three land tenure arrangements on organic farming (OF) in terms of increment of efficiency, yield, and investment in soil-improving activities by using farm-level data gathered from three districts located at Punjab, Pakistan. A multivariate tobit model that captured the probable substitute and investment choices, as well as the endogenous nature of land tenure arrangements, has been employed in this analysis. The empirical outcomes displayed that rights of land use affected the decisions made by farmers to invest in land and to improve efficiency. In detail, owner-farmers with secure rental arrangements invested more in improving their land and productivity compared to those with unsecured lease agreements. The yield per hectare was the highest for owner cultivation farm, while sharecropper output seemed the lowest, which are in agreement with the hypothesis of Marshallian inefficiency.

Highlights

Improving land rights across developing countries has emphasised that agricultural land is more productive under secure land use rights, when compared to those that are insecure [1]
The importance of secure land tenure arrangements in social and economic growth of developing countries has garnered the interest of both legislators and researchers
Reforms of agriculture land are often considered as an efficiency enhancement by taking measures to secure land tenure arrangements

Summary

Introduction

Improving land rights across developing countries has emphasised that agricultural land is more productive under secure land use rights, when compared to those that are insecure [1]. Secure leasing arrangements embolden farmers to invest in soil and productivity improvement due to the assurance that they can hold the land for a longer time to gain investment returns. Reforms of agriculture land, which offer assurance (secure rights) of farmland, may enhance productivity [6]. Both contention for adequacy and the general conviction that neediness is linked to uncertainty have led many stakeholders to help agrarian land reform activities in many countries [7]

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