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The role of tenure security in farmers' decision-making on investment in improved seeds: Insights from mental models

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  • Murken, Lisa
  • Krähnert, Kati
  • Van den Broek, Karlijn
  • Adriko, John
  • Gornott, Christoph

Abstract

This paper applies a mental model approach to study the role of tenure security in farmers' decisionmaking on agricultural investment in Uganda. We investigate the role that both perceived tenure security and formal land rights, measured by the possession of land certificates, play. Our focus is on investment in improved seeds, a widely applied strategy in agricultural development and climate change adaptation. The study design leverages the roll-out of a large land demarcation and registration project, which creates exogenous variation in farmers' tenure security. Results show that, in contrast to expectations derived from economic theory, tenure security plays only a minor role in farmers' decision-making process to invest in improved seeds. Out of 15 potential factors determining a farmer's investment decision, both perceived tenure security and possession of a land certificate are among the least chosen factors, regardless of whether or not households participated in the land registration project. A heterogeneity analysis reveals that female-headed households value formalized land rights more than male-headed households.

Suggested Citation

  • Murken, Lisa & Krähnert, Kati & Van den Broek, Karlijn & Adriko, John & Gornott, Christoph, 2024. "The role of tenure security in farmers' decision-making on investment in improved seeds: Insights from mental models," Ruhr Economic Papers 1066, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:284401
    DOI: 10.4419/96973237
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    References listed on IDEAS

    as
    1. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.
    2. Kemper, Niels & Ha, Luu Viet & Klump, Rainer, 2015. "Property Rights and Consumption Volatility: Evidence from a Land Reform in Vietnam," World Development, Elsevier, vol. 71(C), pages 107-130.
    3. Thomson, Frances & Parada-Hernández, Monica & Acero, Camilo, 2022. "Land formalization – The new magic bullet in counternarcotics? A case study of coca cultivation and tenure (in)formality from Colombia," World Development, Elsevier, vol. 149(C).
    4. Abdulai, Awudu & Owusu, Victor & Goetz, Renan, 2011. "Land tenure differences and investment in land improvement measures: Theoretical and empirical analyses," Journal of Development Economics, Elsevier, vol. 96(1), pages 66-78, September.
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    More about this item

    Keywords

    Agricultural investment; decision-making; land titles; mental models; tenure security;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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