The Case for Long-Term Land Leasing: A Review of the Empirical Literature

Abstract

Land, as a factor of production, has a vital role within the agricultural sector compared with other sectors. However, in recent years, land mobility has become a significant issue around the world with increased concentration and competition for land ownership, limiting the overall competitiveness of the agri-food sector and constraining the potential opportunities for new entrant farmers to access land. While land leasing is increasingly being embraced as a common form of land tenure serving as an alternative to the purchase of land for agriculture, the length of lease has been shown to have a significant impact on land productivity and sustainability. In this study, we provide a comprehensive and systematic review exploring the benefits of longer-term land leasing with a particular focus on developed countries and some selected developing countries in the context of commercial farming with more formal arrangements. Specifically, we highlight the barriers to longterm land leasing and identify potential incentives that might be adopted to encourage long-term land leasing for both landowners and farmers who seek to rent land.