Ireland suffers from very low levels of farmland mobility by European standards. This paper examines the role of attitudes in farmers’ openness toward land transactions using a nationally representative survey of Irish farmers across the major farm systems. The results show that attitudinal factors are a significant predictor of openness to land mobility, both on the supply and demand side of the market. Additionally, there appears to be a greater demand amongst farmers for temporary land transactions such as land leasing arrangements than is currently seen in at market level.
Purpose
The purpose of this paper is to examine the role of institutional factors in agricultural structural change in the European Union (EU) using the case study of land mobility in Ireland. A range of agricultural land use options are compared in order to examine the effect of domestic and EU policy instruments on land mobility.
Design/methodology/approach
Using socio-economic data from the Teagasc National Farm Survey, three hypothetical farms are created using a microsimulation approach to compare incomes across farm systems and land use options. Tax and subsidy policies are applied to derive returns for the hypothetical farms under a variety of land use scenarios.
Findings
The analysis finds that in comparing four hypothetical scenarios, leasing out agricultural land on a long-term basis can prove more profitable for cattle and tillage farmers than farming the land. Only dairy farmers derive consistently higher disposable incomes from farming their land as opposed to leasing it out. Changes in CAP rules can also negatively affect farmers taking advantage of Ireland’s tax-based leasing incentives.
Originality/value
A gap in the literature exists in terms of how institutional factors may act to prevent either land supply or demand channels from functioning properly. This paper addresses that gap, using Ireland as a case study.
We estimate a spatially explicit model of the forest clearance process among smallholder farmers in an agricultural frontier of southern Mexico. Our analysis takes as its point of departure a simple utility-maximising model that suggests many possible determinants of deforestation in an economic environment characterised by missing or thin markets. Hypotheses from the model are tested on a data set that combines a time series of satellite imagery with data collected from a survey of farm households whose agricultural plots were geo-referenced using a global positioning system (GPS). We implement a survival analysis to identify the effect of household level explanatory variables on the probability of deforestation. This approach allows us to introduce a measure of the time until clearance as a covariate, thereby affording a control for the effect of potentially important explanatory variables that vary through time but are not directly observable. In addition to identifying several variables relevant for policy analysis, including household demographics, proximity to roads, and government provision of agricultural support, model results suggest that the deforestation process is characterised by non-linear duration dependence, with the probability of forest clearance first decreasing and then increasing with the passage of time. Published by Elsevier Science B.V.JEL classification: Q15; R14; C41
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.