From Short to Longer Term Contracts: Factors Affecting Participation in Farmland Longer Rentals in Razan County, Iran

Document Type : Original Research

Authors
H. Varmazyari 1
F. Ansari 1
A. Asadi 1
S. E. Tione 2
1 Faculty of Agricultural Economics and Development, University Of Tehran, P. O. BOX: 4111, Karaj, Islamic Republic of Iran.
2 School of Economics and Business, Norwegian University of Life Sciences, P. O. Box: 5003, 1432, Ås, Norway.
10.52547/jast.24.6.1267
Abstract
Although it has some benefits, short-term farmland rental transactions have had negative consequences such as excessive use of water, overuse of chemical fertilizers and pesticides, and farmland degradation. Why are landowners more engaged in short-term land rental contracts and less involved in longer rental contracts, that are more associated with incentives to invest and sustainably use farmland? Based on a post positivist worldview, the present study has chosen a quantitative approach and used a survey strategy to explore factors affecting the participation of landholders in longer farmland rental markets. Using multi-stage sampling, 250 landholders in Razan County who had rented their land, at least once in the past five years, were selected. The study indicated that the landholders' motivations to rent out their farmlands changed by their place of residence (rural/urban). The identified barriers and drivers that require policy attention broadly focus on the security of farmland property rights, competence of tenants and kinship contracts, high risk and profitability of farming activities, and capital constraints in rural areas.

Keywords

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Journal of Agricultural Science and Technology
Volume 24, Issue 6
November and December 2022
Pages 1267-1280