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Agricultural Economics II (Land Tenure and Land Reforms)

Notes

Introduction 

Land is an important factor of production. 

Without land it is impossible to practice the agricultural business. 

However the efficiency of utilization of land is influenced to a large extent by the condition of holding the land. 

Land Tenure 

Land tenure is defined as the possession of the legal rights to the use of land. 

Various kinds of rights to the use of land give rise to different tenure systems. 

Land Tenure System 

All land tenure systems fall into two major classes, namely: 

Collective Tenure Systems 

This includes: 

 Communal Tenure Systems 

This involves the possession of rights over land by the whole community. 

It works quite well under conditions of unlimited, land resources. 

 Advantages of Communal Tenure 

Landless problem does not exist. 

Land is not fragmented. 

Allows for free movement of animals in search of better pastures and water. 

Promotes community spirit among the members. 

Disadvantages of Communal Tenure 

No incentive among the users to conserve the land resources. 

Everybody strives to maximize returns from the land without the drive to invest, for example, in terms of soil conservation and maintenance of soil fertility. 

There is a tendency of overstocking and continuous cropping; which leads to soil erosion and loss of land productivity. 

As a result of communal grazing of livestock, it is impossible to improve livestock through;

- controlled breeding, 

- proper feeding, 

- disease and parasite control. 

Since there is no title deed, (certificate of ownership) it is virtually impossible to secure loans to develop the land. 

Co-operative Tenure System 

This category includes various collective arrangements under the government or other authorities. 

Farmers voluntarily group together and buy land which they subsequently operate on co-operative basis. 

Examples are co-operative ranches. 


Advantages of Co-operative Tenure 

No land disputes. 

Labour is well utilized. 

Profit is distributed according to the number of shares. 

Resource use is enhanced for high production. 


Disadvantages of co-operative tenure.

Incase of poor management everybody will loose.

No individual title deed hence cannot secure loans

State ownership

Land is owned by the whole state and is refered to as government land.

Examples in Kenya;

Areas not allocated to individuals

Land under local county councils/cities and towns

Land under forest, game reserve and parks, land for infra-structure and public utility


Advantages of state ownership

Generation of income for the state

All the citizens benefit from whatever comes out of the land.

Disadvantages

Non-competitive in terms of production

No individual motivation when working on the land.

Individual Tenure system

The various forms of individual land tenure are;

Owner operator,

Plantation and Concestion,

Land-lordism/Tenancy


Owner operator

This category includes all persons who operate on land to which they have absolute individual rights.

Examples are the majority of individual land owners in areas where demarcation and registration of land has taken place and title deeds issued.

Advantages

The owner is free to make permanent production plans.

The owner can pledge the land title deed to secure loans(credit) from lending agencies for further development

An individual is motivated to work harder than when under communal arrangement

Managerial failures usually affect small units of production and are therefore negligible.

It is easy for the owner to get agricultural advice.

Disadvantages

Cost such as machinery for processing may be too high for the individual owner

Innovation may be inadequate due to low levels of education.

Lack of capital to invest.

Plantation and concession

In this form of land tenure, the individual is usually a company or a corporation.

Most of them engage in the production of only one commodity

They are rigid in their production plans and in most cases labour is hired on wage basis.

Example are coffee, tea, sugarcane, sisal estates in Kenya.

Advantages

High production from the land hence high economic gains

Allows foreigners to use and develop land

No land disputes

Create employment for the local people

Generate government revenue through taxation.

Disadvantages

Individuals own large pieces of land while others are landless

Large areas of land may be left underdeveloped.

Foreigners may repatriate profit to their countries.

Landlordism and tenancy

The arrangement here involves the ownership of land by one individual or group of individuals (landlord) who lease it to another individual (tenant). 

A legal lease specifies the length of time during which the tenure is operative; 

        and that serves as a security of tenure to the tenant. 

The efficiency of production in this arrangement is greatly affected by the length of lease, its legal backing and rent payable. 

Advantages 

A person without land can get a chance to use land. 

A landlord who cannot operate the land, for any reason, can still earn income by leasing it to a needy tenant. 

It is a flexible arrangement; that is, it allows room for change of production plans should need arise. 

Security of tenure gives the tenant incentive to invest depending on the length of tenure. 

Disadvantages 

Poor land use and low production if the tenant does not have enough funds to improve on land. 

Tenants cannot produce long term crops, 

Landlords can exploit the tenants by overcharging. 

Lack of incentives to improve land by the tenants since it does not belong to them. 

Land Reforms 

Definition 

Land reform is any organized action designed to improve the structure of land tenure and land use. 

Forms of Land Reform

Land Consolidation 

This means bringing or putting together, into one piece; fragmented parcels or pieces of land scattered over a large area. 

The objective of land consolidation are : 

To save on time spent while moving from one piece of land to another. 

To facilitate effective and efficient farm planning. 

To create an incentive among land operators to invest on and develop land.

To facilitate mechanization and improve production through efficiency. 

To improve level of production through effective supervision of the labour force and sound farming methods, 


 Land Fragmentation and Sub-division 

This is the subdividing of a (large) piece of land into smaller portions.

Sometimes it becomes necessary to sub-divide land for the following reasons: 

- To sell part of the land. 

- The parent may wish to subdivide and distribute his land among the sons, daughters and other dependants. 

- The government may decide to subdivide large farms in order to settle landless citizens. 

Land Adjudication and Registration

Land adjudication involves;

- Establishing the legitimate ownership,

- Measurements (to make permanent boundaries) 

- Recording of land details. 

Once land has been adjudicated, and any disputes concerning the same land are settled,

It is then registered in the "Register of Land".

And the owner is issued with a land title deed or certificate of legal ownership. 

Importance of land title deed

The legal owner of the land has security of tenure and hence an incentive to invest and improve productivity. 

A farmer can mortgage the land by offering land title certificate as a security to loaning agencies to secure capital to finance development projects. 

If a farmer who cannot operate the farm, he can still earn income from it by leasing it. 

Disputes concerning land boundaries and/or land ownership no longer arise.  


Land Settlement and Resettlement

Definition 

Land settlement means the occupation of land which was previously uninhabited. 

Land resettlement, on the other hand, is the transfer of people from an already densely populated area to a sparsely populated one. 

Objectives 

To settle the landless citizens. 

To relieve population pressure in densely populated areas. 

To increase or promote agricultural productivity by farming on land that was previously unused or lying idle. 

To create self-employment thus improving the living standards. 

Land reclamation, especially by creating tsetse fly-barriers. 


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