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Impacts of Land Rental Markets on Rural Poverty in Kenya

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  • Jin, Songqing
  • Jayne, Thomas S.

Abstract

This study uses panel data from 1,142 Kenya smallholder households over four survey periods to examine the determinants of participation in land rental markets and to quantify the impact of renting land on households’ crop income and total income. We find that land rental markets in Kenya enhance productivity and are equitable. The results are consistent across different estimation methods and model specifications. Dynamic panel models were used to assess the impact of rental participation on households’ crop income and total income. After controlling for the endogeneity of rental market participation and the persistent effects of lagged income, we find that the decision to rent land increased tenant households’ net crop (net total) income by 25.1 (6.6) percent. These percentage gains are inversely related to household landholding size. Hence, land rental markets in Kenya appear to play an important role in raising incomes and reducing poverty for land-constrained smallholder farmers.

Suggested Citation

  • Jin, Songqing & Jayne, Thomas S., 2011. "Impacts of Land Rental Markets on Rural Poverty in Kenya," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103907, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103907
    DOI: 10.22004/ag.econ.103907
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    Cited by:

    1. Cao, Yueming & Bai, Yunli & Zhang, Linxiu, 2021. "Plot Size, Adjacency, and Farmland Rental Contract Choice," 2021 Conference, August 17-31, 2021, Virtual 315378, International Association of Agricultural Economists.
    2. Mbudyza, J. J & Ayuya, O. I & Mshenga, P. M, 2017. "Drivers of small scale farmers participation in agricultural land rental markets in Kenya," African Journal of Rural Development (AFJRD), AFrican Journal of Rural Development (AFJRD), vol. 2(4), December.
    3. Gamel Abdul-Nasser Salifu, 2019. "The Political Economy Dynamics of Rural Household Income Diversification: A Review of the International Literature," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 273-290, December.
    4. Puddu,Marco & Bartolini, Fabio & Viaggi,Davide, 2012. "Simulation of Land Use and Investment Behaviour under Different Policy Scenarios: Results of the extended farm/household model," Factor Markets Working Papers 132, Centre for European Policy Studies.
    5. Viaggi, Davide & Raggi, Meri & Puddu, Marco & Bartolini, Fabio, 2013. "Farm/Household-level Simulation Results of Testing Policy and Other Scenarios," Working papers 157113, Factor Markets, Centre for European Policy Studies.
    6. Mbudzya, Joseph Jabu, 2017. "Effect Of Agricultural Land Rental Market Participation On Agricultural Income Of Small Scale Farmers In Kwale County, Kenya," Research Theses 276436, Collaborative Masters Program in Agricultural and Applied Economics.
    7. Viaggi, D. & Bartolini, Fabio & Puddu, M. & Raggi, M., 2013. "Impact of post-2013 CAP reform on land markets: evidence from farm surveys and farm-level modelling," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152376, International Agricultural Trade Research Consortium.
    8. Yueming Cao & Yunli Bai & Linxiu Zhang, 2022. "Plot Size, Adjacency, and Farmland Rental Contract Choice," Land, MDPI, vol. 11(4), pages 1-21, April.
    9. Rudzani Mudzielwana & Paramu Mafongoya & Maxwell Mudhara, 2022. "An Analysis of the Determinants of Irrigation Farmworkers’ Food Security Status: A Case of Tshiombo Irrigation Scheme, South Africa," Agriculture, MDPI, vol. 12(7), pages 1-14, July.
    10. Milu Muyanga & T. S. Jayne & William J. Burke, 2013. "Pathways into and out of Poverty: A Study of Rural Household Wealth Dynamics in Kenya," Journal of Development Studies, Taylor & Francis Journals, vol. 49(10), pages 1358-1374, October.

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    Keywords

    Agricultural and Food Policy; International Development; Land Economics/Use;
    All these keywords.

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