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

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  • Muhammad Waqar Akram

    (College of Economics & Management, North East Forestry University, Harbin 150040, China)

  • Nida Akram

    (College of Economics & Management, North East Forestry University, Harbin 150040, China)

  • Wang Hongshu

    (College of Economics & Management, North East Forestry University, Harbin 150040, China)

  • Shahla Andleeb

    (Department of Environmental Sciences, Government College and Women University, Sailkot 513310, Pakistan)

  • Khalil ur Rehman

    (Department of Environmental Sciences, Government College and Women University, Sailkot 513310, Pakistan)

  • Umair Kashif

    (College of Economics & Management, North East Forestry University, Harbin 150040, China)

  • Ayesha Mehmood

    (Institute of Knowledge and Leadership University of Management and Technology Lahore, 54770 Punjab, Pakistan)

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.

Suggested Citation

  • Muhammad Waqar Akram & Nida Akram & Wang Hongshu & Shahla Andleeb & Khalil ur Rehman & Umair Kashif & Ayesha Mehmood, 2019. "Impact of Land Use Rights on the Investment and Efficiency of Organic Farming," Sustainability, MDPI, vol. 11(24), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:24:p:7148-:d:297634
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    References listed on IDEAS

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    Cited by:

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    2. Xiao Lu & Yi Qu & Piling Sun & Wei Yu & Wenlong Peng, 2020. "Green Transition of Cultivated Land Use in the Yellow River Basin: A Perspective of Green Utilization Efficiency Evaluation," Land, MDPI, vol. 9(12), pages 1-22, November.
    3. Choi, Jiseon & Jodlowski, Margaret C., 2022. "Tenure Status and Land Investment in South Korea," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322476, Agricultural and Applied Economics Association.
    4. Roestamy, Martin & Martin, Abraham Yazdi & Rusli, Radif Khotamir & Fulazzaky, Mohamad Ali, 2022. "A review of the reliability of land bank institution in Indonesia for effective land management of public interest," Land Use Policy, Elsevier, vol. 120(C).
    5. Rabia Mazhar & Hossein Azadi & Steven Van Passel & Rando Värnik & Marcin Pietrzykowski & Rytis Skominas & Zou Wei & Bi Xuehao, 2023. "Does Contract Length Matter? The Impact of Various Contract-Farming Regimes on Land-Improvement Investment and the Efficiency of Contract Farmers in Pakistan," Agriculture, MDPI, vol. 13(9), pages 1-16, August.
    6. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2021. "The Case for Long-Term Land Leasing: A Review of the Empirical Literature," Land, MDPI, vol. 10(3), pages 1-21, March.

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