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

Muhammad Waqar Akram, Nida Akram, Wang Hongshu, Shahla Andleeb, Khalil ur Rehman, Umair Kashif and Ayesha Mehmood
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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

Sustainability, 2019, vol. 11, issue 24, 1-18

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.

Keywords: land use policy; land tenure system; organic farming; investment; productivity; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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