Land rental markets and rural poverty dynamics in Northern Ethiopia: Panel data evidence using survival models

Ghebru, Hosaena; Holden, Stein T.

doi:10.1111/rode.12548

Cited by 11 publications

(12 citation statements)

References 63 publications

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“…Renting in is usually associated with increased farm incomes (Jin and Jayne 2013;Muraoka et al 2018). Renting out has been found to contribute to increased off-farm activities (Nguyen et al 2021), and a higher chance for households to escape poverty (Ghebru and Holden 2019). However, research on the effect of rented land on households' livelihood strategies remains scarce.…”

Section: Literature Review and Backgroundmentioning

confidence: 99%

The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam

2022

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This paper investigates the role of land rental markets in livelihood choices using data from 792 farming households in rural Vietnam. First, we cluster households according to livelihood strategies and estimate the determinants of the respective decision. In a second step, we analyze the contribution of rented land in linking smallholders to output markets. Our results suggest that rented land can provide smallholders with an opportunity to increase their agricultural activities and avoid resorting to less remunerative activities such as agricultural wage labor. Moreover, rented crop area increases the probability of market participation as well as the quantity of sales. Our results point to the need for a further liberalization of land rental markets specifically targeted at households that have been excluded from more remunerative livelihood strategies previously. Supporting these households to have access to the assets required to cultivate the additional area is thus recommended.

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Section: Literature Review and Backgroundmentioning

confidence: 99%

The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam

2022

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“…However, we do not see such an association in the use of combine harvesters with the share of rented-in or sharecropped-in land in these settings. This lack of association of mechanization with land rental markets might be linked to regulations that might inhibit the development of active and efficient rental markets, as shown by other authors (for example, Ghebru and Holden 2016).…”

Section: Role Of Mechanization In Agricultural Transformationmentioning

confidence: 82%

The rapid-but from a low base-Uptake of agricultural mechanization in Ethiopia: Patterns, implications, and challenges

Berhane¹,

Dereje²,

Minten³

et al. 2020

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The uptake of agricultural mechanization in Ethiopia is low, with less than 1 percent of agricultural plots plowed with a tractor. However, in recent years the uptake of agricultural machinery has accelerated. We note an impressive increase in imports of combine harvesters and of tractors, seemingly associated with the increasing costs of agricultural labor and animal traction, for which agricultural mechanization can substitute. We estimate that a quarter of the area in Ethiopia planted with wheat-the fourth most important cereal in the country-is currently harvested by combine harvesters, and they are widely used in the major wheat-growing zones in the southeast of the country in particular. Private mechanization service providers have rapidly emerged. Smallholders in these wheat-growing zones rely heavily on agricultural machinery rental services for plowing, harrowing, and harvesting. We find that mechanization is associated with significantly lower labor use, and that the adoption of combine harvesters-but not tractors-is significantly associated with higher yields, seemingly due to lower postharvest losses. Although further expansion of mechanization in the country is desired given the environmental and financial costs of holding oxen, and the higher yields linked with some forms of mechanization, it appears to be hampered by farm structures, particularly small farm sizes and consequent limits in scale; fragmented plots; crop diversity; physical constraints, such as the presence of stones, steep fields, and certain soil types; and economic and financial constraints, including limited access to foreign exchange and credit, and the still relatively low wages in less commercialized zones.

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“…Land rental markets offer land transactions without transferring ownership and, therefore, relatively lower transaction costs and smaller flexible payments. This leads to reduced barriers to entry into land markets for the poor in Ethiopia and Kenya (Ghebru and Holden, 2019; Jin and Jayne, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Land rental markets as a poverty reduction strategy: evidence from Southeast Asia

Seewald

Baerthel

Nguyen

2023

JED

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PurposeThis study aims to investigate whether the participation in land rental markets helps to mitigate impacts by climate change on multidimensional poverty in Thailand and Vietnam.Design/methodology/approachThe authors use precipitation data from the National Aeronautics and Space Administration (NASA) and self-reported shocks from the Thailand Vietnam Socio-Economic Panel (TVSEP) project to estimate climate change. Data from the TVSEP are also used to calculate a multidimensional poverty index (MPI). Fixed-effects logit panel regressions with interaction terms are implemented to analyze the above mentioned.FindingsThe results show that land rental markets are used as mitigation strategies to climate change in Thailand and Vietnam. The participation in land rental markets also reduces multidimensional poverty. However, as a mitigation strategy, land rental markets are only successful in certain circumstances.Research limitations/implicationsThe results show that there is potential in using land rental markets as mitigation strategies to climate change. Further research is needed to better understand which adaptation strategies, besides land rental market participation, and which combinations of different adaptation strategies are successful to mitigate negative effects induced by climate change.Practical implicationsThe results show that there is potential in using land rental markets as mitigation strategies to climate change. Therefore, education in the participation in land rental markets and how to use them as a mitigation strategy can be a way to increase households' resilience to negative effects induced by climate change. Households make better decisions regarding their land when they are better informed on the functionality of land rental markets. Additionally, being better informed increases self-confidence to participate in land-rental markets.Originality/valueLand rental markets as a mitigation strategy to climate change rarely have been studied, and if so, mainly the effect of leasing land has been studied. Additionally, the authors implement new measures of poverty – a multidimensional view on poverty which provides new insights into who are the poor and how they can be lift out of poverty.

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Land rental markets and rural poverty dynamics in Northern Ethiopia: Panel data evidence using survival models

Cited by 11 publications

References 63 publications

The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam

The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam

The rapid-but from a low base-Uptake of agricultural mechanization in Ethiopia: Patterns, implications, and challenges

Land rental markets as a poverty reduction strategy: evidence from Southeast Asia

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