Why do farmers care about rented land? Investigating the context of farmland tenure

Leonhardt, Heidi; Braito, Michael; Penker, Marianne

doi:10.2489/jswc.2021.00191

Cited by 13 publications

(3 citation statements)

References 51 publications

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“…These trends make it harder for farmers to own and access farmland, reducing their control over its dispensation. Decreased land access, tenure, and control by farmers is expected to exacerbate food insecurity and disincentivize sustainable farm practices (Trauger, 2014;Borras et al, 2015), although targeted policies may mitigate this tenure effect in some cases (Leonhardt et al, 2021). Furthermore, land access and tenure are consistently cited as the greatest barriers to the establishment of new-entrant farmers who would otherwise bring the skills, aspirations, and labor necessary for agricultural diversification (Beckett and Galt, 2014;Carlisle et al, 2019b).…”

Section: Enhancing Land Access and Tenurementioning

confidence: 99%

Narrow and Brittle or Broad and Nimble? Comparing Adaptive Capacity in Simplifying and Diversifying Farming Systems

Petersen-Rockney

Baur

Guzman

et al. 2021

Front. Sustain. Food Syst.

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Humanity faces a triple threat of climate change, biodiversity loss, and global food insecurity. In response, increasing the general adaptive capacity of farming systems is essential. We identify two divergent strategies for building adaptive capacity. Simplifying processes seek to narrowly maximize production by shifting the basis of agricultural production toward centralized control of socially and ecologically homogenized systems. Diversifying processes cultivate social-ecological complexity in order to provide multiple ecosystem services, maintain management flexibility, and promote coordinated adaptation across levels. Through five primarily United States focused cases of distinct agricultural challenges—foodborne pathogens, drought, marginal lands, labor availability, and land access and tenure—we compare simplifying and diversifying responses to assess how these pathways differentially enhance or degrade the adaptive capacity of farming systems in the context of the triple threat. These cases show that diversifying processes can weave a form of broad and nimble adaptive capacity that is fundamentally distinct from the narrow and brittle adaptive capacity produced through simplification. We find that while there are structural limitations and tradeoffs to diversifying processes, adaptive capacity can be facilitated by empowering people and enhancing ecosystem functionality to proactively distribute resources and knowledge where needed and to nimbly respond to changing circumstances. Our cases suggest that, in order to garner the most adaptive benefits from diversification, farming systems should balance the pursuit of multiple goals, which in turn requires an inclusive process for active dialogue and negotiation among diverse perspectives. Instead of locking farming systems into pernicious cycles that reproduce social and ecological externalities, diversification processes can enable nimble responses to a broad spectrum of possible stressors and shocks, while also promoting social equity and ecological sustainability.

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Section: Enhancing Land Access and Tenurementioning

confidence: 99%

Narrow and Brittle or Broad and Nimble? Comparing Adaptive Capacity in Simplifying and Diversifying Farming Systems

Petersen-Rockney

Baur

Guzman

et al. 2021

Front. Sustain. Food Syst.

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show abstract

“…(2008) find a notable price markdown for leased land, however only for semi-urban and urban areas, not for rural areas. Recent studies for Austria report contradictory results (Leonhardt et al. , 2021; Eder et al.…”

Section: Introductionmentioning

confidence: 99%

“…Cotteleer et al (2008) find a notable price markdown for leased land, however only for semi-urban and urban areas, not for rural areas. Recent studies for Austria report contradictory results (Leonhardt et al, 2021;Eder et al, 2021). Some evidence exists in the residential housing market, where Clauretie and Wolverton (2006) and Turnbull and Zahirovic-Herbert (2012) note lower prices for houses under tenant occupancy.…”

Section: Introductionmentioning

confidence: 99%

How does tenancy affect farmland prices? Effects of lease status, lease term and buyer type

Humpesch¹,

Seifert

Balmann

et al. 2022

AFR

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PurposeLease contracts at the time of sale influence buyers' expectations about future returns of farmland ownership and may thus contribute to price dispersion. This paper investigates the conjecture that existing land lease contracts influence buyers' and sellers' costs of being information deficient and thus their bargaining position, their expectation formation about future returns, and thus ultimately the farmland price.Design/methodology/approachThe authors link different levels of information, search, and bargaining costs to three buyer types and their land use intentions. Relying on a rich dataset of farmland transactions in the German Federal State of Saxony-Anhalt from 2014 to 2019, the authors use a hedonic pricing model to investigate five hypotheses applying multivariate one-sided tests.FindingsThe authors find buyer-specific effects related to lease status and lease term of a lot. Tenant buyers pay less than non-farmer buyers for leased lots, whereas non-tenant farmers pay a markup. While prices decrease for all buyer groups with an increasing lease term, this effect is the strongest for non-tenant farmer buyers. This study’s results suggest that an existing lease contract impacts buyers' costs of being information deficient, their bargaining positions and expectation formation, and ultimately the price discovery process.Originality/valueTo the authors’ knowledge, this is the first study that decomposes the effects of tenancy on farmland prices by buyer type and lease term. The study provides insights into price dispersion for identical characteristics of farmland and explains why empirical studies have found mixed or no empirical evidence that lease contracts influence the price discovery process.

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Exploring the Role of ‘Intermediaries’ between Non-Operating Landowners and Tenant Farmers in Promoting Conservation on Rented Farmland

Ranjan,

Johnson,

Bernard

et al. 2024

Environmental Management

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Why do farmers care about rented land? Investigating the context of farmland tenure

Cited by 13 publications

References 51 publications

Narrow and Brittle or Broad and Nimble? Comparing Adaptive Capacity in Simplifying and Diversifying Farming Systems

Narrow and Brittle or Broad and Nimble? Comparing Adaptive Capacity in Simplifying and Diversifying Farming Systems

How does tenancy affect farmland prices? Effects of lease status, lease term and buyer type

Exploring the Role of ‘Intermediaries’ between Non-Operating Landowners and Tenant Farmers in Promoting Conservation on Rented Farmland

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