Understanding agricultural land leasing in Ireland: a transaction cost approach
Abstract Formal written land leasing contracts offer an alternative to land purchase for those farmers wishing to expand their land area and provide greater security relative to informal short-term rental agreements and are particularly important for beginning farmers with resources insufficient to...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2023-06-01
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| Series: | Agricultural and Food Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40100-023-00254-x |
| _version_ | 1827923120486350848 |
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| author | Laura Onofri Samuele Trestini Fateh Mamine Jason Loughrey |
| author_facet | Laura Onofri Samuele Trestini Fateh Mamine Jason Loughrey |
| author_sort | Laura Onofri |
| collection | DOAJ |
| description | Abstract Formal written land leasing contracts offer an alternative to land purchase for those farmers wishing to expand their land area and provide greater security relative to informal short-term rental agreements and are particularly important for beginning farmers with resources insufficient to purchase land. Formal land leasing contracts vary in terms of their duration, but there is limited understanding about the determinants of contract duration in developed countries. In this research, we use econometric techniques and transaction level data to explore the determinants of duration for agricultural land lease contracts for two regions in Ireland. Under the transaction cost economics approach, the research explores the role of legal status, price and non-price conditions in influencing the contract duration. Results indicate that the legal status of the tenant is a significant factor in influencing the duration. Provisions such as break clauses appear positively related to duration and confirm the theoretical expectation that long-term contracts create a demand for processes that enable adaptation over the course of long-term exchange. |
| first_indexed | 2024-03-13T04:53:09Z |
| format | Article |
| id | doaj.art-06a8f10afdea4d0da2b2dd90993d9bb9 |
| institution | Directory Open Access Journal |
| issn | 2193-7532 |
| language | English |
| last_indexed | 2024-03-13T04:53:09Z |
| publishDate | 2023-06-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Agricultural and Food Economics |
| spelling | doaj.art-06a8f10afdea4d0da2b2dd90993d9bb92023-06-18T11:03:59ZengSpringerOpenAgricultural and Food Economics2193-75322023-06-0111112010.1186/s40100-023-00254-xUnderstanding agricultural land leasing in Ireland: a transaction cost approachLaura Onofri0Samuele Trestini1Fateh Mamine2Jason Loughrey3Department of Land, Environment, Agriculture and Forests, University of PadovaDepartment of Land, Environment, Agriculture and Forests, University of PadovaFrench National Institute for Agriculture, Food, and Environment (INRAE)Ireland Agricultural and Food Development AuthorityAbstract Formal written land leasing contracts offer an alternative to land purchase for those farmers wishing to expand their land area and provide greater security relative to informal short-term rental agreements and are particularly important for beginning farmers with resources insufficient to purchase land. Formal land leasing contracts vary in terms of their duration, but there is limited understanding about the determinants of contract duration in developed countries. In this research, we use econometric techniques and transaction level data to explore the determinants of duration for agricultural land lease contracts for two regions in Ireland. Under the transaction cost economics approach, the research explores the role of legal status, price and non-price conditions in influencing the contract duration. Results indicate that the legal status of the tenant is a significant factor in influencing the duration. Provisions such as break clauses appear positively related to duration and confirm the theoretical expectation that long-term contracts create a demand for processes that enable adaptation over the course of long-term exchange.https://doi.org/10.1186/s40100-023-00254-xLand lease contractTransaction cost economicsTwo-stage least squaresContract duration |
| spellingShingle | Laura Onofri Samuele Trestini Fateh Mamine Jason Loughrey Understanding agricultural land leasing in Ireland: a transaction cost approach Agricultural and Food Economics Land lease contract Transaction cost economics Two-stage least squares Contract duration |
| title | Understanding agricultural land leasing in Ireland: a transaction cost approach |
| title_full | Understanding agricultural land leasing in Ireland: a transaction cost approach |
| title_fullStr | Understanding agricultural land leasing in Ireland: a transaction cost approach |
| title_full_unstemmed | Understanding agricultural land leasing in Ireland: a transaction cost approach |
| title_short | Understanding agricultural land leasing in Ireland: a transaction cost approach |
| title_sort | understanding agricultural land leasing in ireland a transaction cost approach |
| topic | Land lease contract Transaction cost economics Two-stage least squares Contract duration |
| url | https://doi.org/10.1186/s40100-023-00254-x |
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