Determinants of Household Participation in Land Rental Markets
Institutional arrangements help to get access to farmland
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The descriptive result reveals that land rental markets appear to be the dominant institutional arrangement to get access to farmland next to PA allocated arrangement. Result of the Tobit model indicates, landholding size, and age of the household heads are important variables which had an inverse and significant influence on participation and intensity of participation in land renting-in market, but significantly affects renting-out market from the opposite direction. The result further explains that access to rental land is tightening to farmers with no access to credit, less oxen ownership,...
The descriptive result reveals that land rental markets appear to be the dominant institutional arrangement to get access to farmland next to PA allocated arrangement. Result of the Tobit model indicates, landholding size, and age of the household heads are important variables which had an inverse and significant influence on participation and intensity of participation in land renting-in market, but significantly affects renting-out market from the opposite direction. The result further explains that access to rental land is tightening to farmers with no access to credit, less oxen ownership, and older households. On the supply side of land rental transaction, less oxen ownership and older households are more likely in renting-out their land. The analysis figure-out that the liquidity of land renting-out market is hampered by insecurity of tenure in this informally arranged rental land market. Therefore, policy and development interventions should give emphasis to improvement ofsuch institutional support systems such as facilitating micro-finance institutions; strengthening infrastructural development; so as to enhance well functioning dynamic land rental markets in the district.
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