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Causes behind Tenancy Contract among the Marginal Farmers of West Bengal, India and Its’ Impact on their Livelihood

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  • Kundu, Amit
  • Goswami, Pubali

Abstract

The basic objective of this paper is to identify the possible factors which influence the marginal farmer households of West Bengal to go for tenancy contracts. In our study area, the target group is marginal farmer households where the only fixed-rent contract is observed, and all the contracts are verbal. Comparatively big landowners among the marginal farmer households where lack of motivation is observed among the younger generations to pursue agricultural activities for their livelihood and have higher earnings from different non-farm activities influence them to lease out the land. On the contrary, landless or the marginal farmer households owned very small size of land are more eager to take land in a lease for cultivation. The availability of family labour force among these types of households and earnings from alternative sources play an important role during the time of taking such a decision. After applying Heckman’s two-step treatment effect models, it is observed that marginal farmer households who lease out land are economically better off than the marginal farmer households who are not interested in any such tenancy contract. Besides that, it is also observed that farm households even after taking land in the lease are economically worse-off than the farm households who are not interested in any tenancy contract. But most of the marginal farmer households whichever type are living below the poverty line.

Suggested Citation

  • Kundu, Amit & Goswami, Pubali, 2021. "Causes behind Tenancy Contract among the Marginal Farmers of West Bengal, India and Its’ Impact on their Livelihood," MPRA Paper 112873, University Library of Munich, Germany, revised 02 Jan 2022.
    • Handle: RePEc:pra:mprapa:112873
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    References listed on IDEAS

    as
    1. Taslim, M A & Ahmed, F U, 1992. "An Analysis of Land Leasing in Bangladesh Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 615-628, April.
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    3. Amit Kundu & Sangita Das, 2019. "Push and (or) Pull? Drivers of Labour Force Participation in Indian Agriculture," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(3), pages 413-430, September.
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    6. Sharma, H.R., 2000. "Tenancy Relations in Rural India: A Temporal and Cross-Sectional Analysis," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 55(3), September.
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    More about this item

    Keywords

    Agriculture; Tenancy Contract; Marginal farmers; Impact Evaluation; Poverty;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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