The economics of land fragmentation in the north of Vietnam*

Land fragmentation, where a single farm has a number of parcels of land, is a common feature of agriculture in many countries, especially in developing countries. In Vietnam, land fragmentation is common, especially in the north. For the whole country, there are about 75 million parcels of land, an average of seven to eight plots per farm household. Such fragmentation can be seen to have negative and positive benefits for farm households and the community generally. Comparative statics analysis and analysis of survey data have led to the conclusion that small‐sized farms are likely to be more fragmented, and that fragmentation had a negative impact on crop productivity and increased family labour use and other money expenses. Policies which allow the appropriate opportunity cost of labour to be reflected at the farm level may provide appropriate incentives to trigger farm size change and land consolidation. Policies which tip the benefits in favour of fewer and larger plots, such as strong and effective research and development, an active extension system and strong administrative management, may also lead to land consolidation.     

Land consolidation,customary lands,and Ghana's Northern Savannah Ecological Zone: An evaluation of the possibilities and pitfalls

Land fragmentation has been identified to greatly undermine crop production in many countries. In the case of Ghana’s customary tenure system, household farmlands are relatively small and are highly fragmented. Recent agricultural drives, however, have focused on farm level interventions that are ad hoc with short-term benefits. A sustainable long-term application of land consolidation which reorganises farmlands may improve yields, reduce the cost of production and improve the incomes of farmers. The successful implementation of land consolidation depends greatly on the suitability of local conditions with respect to land tenure and land use. However, in Ghana’s customary lands, the alignment between the requirements for land consolidation and existing conditions remains unexplored. This study investigated the feasibility of land consolidation within the customary tenure by juxtaposing the local conditions of the study areas with the baseline conditions for land consolidation outlined in literature. Using both qualitative and spatial data, the study revealed some traits of convergence and divergence with respect to the baseline conditions in the study areas. For example, conditions such as the existence of land fragmentation, suitable topography and soil distribution were fully met. Conditions such as the existence of a land bank, technical expertise, and infrastructure and supportive legal frameworks were partially met. The remaining conditions such as the willingness to participate, availability of a land information system and favorable land ownership structure were non-existent. The circumstances surrounding these unmet conditions are deeply embedded in customs and traditions that hardly yield to change. Since these conditions are fundamental for land consolidation, their absence negates the feasibility of land consolidation under the current tenure system of the study areas.     

How does land fragmentation affect off‐farm labor supply: panel data evidence from China

This article provides a deeper theoretical understanding of the linkages between land fragmentation and off‐farm labor supply in China, and investigates this relationship empirically in a more direct way than does the existing literature. Drawing upon a rural household panel data set collected in Zhejiang, Hubei, and Yunnan Provinces from 1995 to 2002, we estimate the effects in two steps. First, we estimate the effect of land fragmentation on labor productivity. Second, we estimate the effect of land fragmentation on off‐farm labor supply. The production function results show that land fragmentation indeed leads to lower agricultural labor productivity, implying that land consolidation will make on‐farm work more attractive and thus decrease off‐farm labor supply. However, the effect of land consolidation on off‐farm labor supply is not significant. One likely explanation for this result may be the potentially imperfect labor markets.     

Land consolidation – A great need to improve effectiveness. A case study from Poland

Among the different factors which have an influence on the profitability of small and medium-size farms, a very significant and sometimes even crucial role is played by the unfavourable parameters of land fragmentation (LF). However, this adverse limiting factor can be improved in a relatively short time through land consolidation (LC) treatment. The financial support of these kinds of activities is one of the main aspects of the Common Agricultural Policy (CAP), which aims to equalise the conditions for farming production. Since accession to the EU in 2004, Poland is one of the biggest beneficiaries of various financially-supported projects oriented to the development of rural area, where LC work takes a special position.This paper sums up the outcomes of the LC work that was undertaken in Poland over the period 2007–2013. The results of the investigation delivered the information about the effectiveness of LC work at the farm level. Also, the efficiency of the existing funding strategy of LC work was evaluated. Additionally, the findings revealed poor effects of land swapping and re-parcelling activities, which is disturbing bearing in mind the financial scale and the amount of time spent conducting these actions. As a remedy, several solutions for improvement of the inefficient LC proceedings were proposed.     

Impact of land fragmentation and resource ownership on productivity and efficiency: The case of rice producers in Bangladesh

The paper analyzes the impact of land fragmentation and ownership of resources on productivity and technical efficiency in rice production in Bangladesh using farm level survey data. Results reveal that land fragmentation has a significant detrimental effect on productivity and efficiency as expected. The elasticity estimates of land fragmentation reveal that a 1% increase in land fragmentation reduces rice output by 0.05% and efficiency by 0.03%. On the other hand, ownership of key resources (land, family labour, and draft animals) significantly increases efficiency. The mean elasticity estimates reveal that a 1% increase in family labour and owned draft animal improve technical efficiency by 0.04% and 0.03%, respectively. Also, a 1% increase in the adoption of modern technology improves efficiency by 0.04%. The mean technical efficiency in rice production is estimated at 0.91 indicating little scope to improve rice production per se using existing varieties. Policy implications include addressing structural causes of land fragmentation (e.g., law of inheritance and political economy of agrarian structure), building of physical capital (e.g., land and livestock resources), improvements in extension services and adoption of modern rice technology.     

The role of legal protection in forest conservation in an urban matrix

Establishing forest protection standards is essential for biodiversity conservation and for ensuring the public water supply. This study evaluated whether compliance with environmental legislation aimed at protecting the Atlantic Forest is sufficient to minimize the negative effects of urban pressure on the conservation of biodiversity in the water source area of the Billings reservoir in the municipality of Diadema. To assess the effectiveness of environmental legislation, we created a current land use and land cover map as well as maps for an expected legal scenario and evaluated both using landscape metrics. Our findings indicate that forest resource availability in the area is critical but can be improved by compliance with legal obligations, which have complementary effects and the potential to promote less fragmented landscapes. On the other hand, they do not prevent the tendency of fragmentation caused by the surrounding urban matrix, which can reduce the positive effect of the legal compliance on forest conservation in cases of consolidated urban areas.     

Land reform and land fragmentation in Central and Eastern Europe

It has often been stated that land fragmentation and farm structures characterized by small agricultural holdings and farms divided in a large number of parcels have been the side-effect of land reform in Central and Eastern Europe. This article reports the findings of a study of land reform in 25 countries in the region from 1989 and onwards and provides an overview of applied land reform approaches. With a basis in theory on land fragmentation, the linkage between land reform approaches and land fragmentation is explored. It is discussed in which situations land fragmentation is a barrier for the development of the agricultural and rural sector. The main finding is that land fragmentation is often hampering agricultural and rural development when both land ownership and land use is highly fragmented.     

Changes in land use, land tenure, and landscape fragmentation in the Tijuana River Watershed following reform of the ejido sector

Changes in land use and land tenure can influence both physical fragmentation and ownership fragmentation of landscapes, with implications for biodiversity. In this study, we evaluated changes in land use and land tenure in the Tijuana River Watershed, a region of high biodiversity and endemism, following the implementation of a new Agrarian Law which allowed for privatization and sales of communal land (ejidos) beginning in 1992. In order to understand changes in land use and cover, we constructed maps from aerial photographs and Aster images and measured changes between 1994 and 2005. In order to understand changes in land tenure, we collected data from Mexican government sources on ejido land size, ownership, and sales, and we conducted 55 structured interviews with ejidatarios in the watershed. Our results demonstrate that land-use/cover change between 1994 and 2005 was dominated by an increase in urban area and grasslands, and a decrease in coastal sage scrub, chaparral, and, to a lesser degree, agriculture. In particular, the conversion of coastal sage scrub has left a far more fragmented landscape than existed in 1994. In addition, most of the ejidos in the watershed, as well as individuals interviewed, had participated in some stage of the land certification and titling process allowed by the new Agrarian Law, resulting in substantial changes in land tenure. However, land tenure security appeared to play a larger role than a desire to sell land and, contrary to studies from other regions, full title to the land was obtained in a range of urban and rural settings, rather than primarily on land closest to urban zones. Our results suggest that past predictions regarding future urban growth and fragmentation of native vegetation in the region have proven accurate and highlights regions of change that merit further study.     

The land sparing – land sharing controversy: Tracing the politics of knowledge

Feeding 9 billion people by 2050 on one hand, and preserving biodiversity on the other hand, are two shared policy goals at the global level. Yet while these goals are clear, they are to some extent in conflict, because agriculture is a major cause of biodiversity loss, and the path to achieve both of them is at the heart of a public controversy around ‘productive’ land use and biodiversity conservation. Over the years, the scientific, policy, civil society and agri-business communities have been engaged in producing evidence that can support a land sparing policy (separating intensive agricultural production from biodiversity conservation) or a land sharing policy (integrating the two in larger and more extensive landscapes). This paper contributes to this debate by analyzing land sparing and land sharing (LSS) as a socio-technical controversy. Through the analysis of large and small corpora of scientific, policy, corporate social responsibility and sustainability standards documents we explore the ethical underpinnings and social networks that support the opposing sides of this controversy. We explore these linkages in order to explain how the concept of land sparing achieved dominance in the scientific literature and how the concept has been taken up in international policy, business and civil society circles. We examine the convergences and divergences in alliances between actors in this controversy in order to map how specific actors have promoted the concept of land sparing as the best way to used land for biodiversity and food production.     

Evaluating the impact of land fragmentation on the cost of agricultural operation in the southwest mountainous areas of China

Given the background of the increasing opportunity cost of farming and the popularization of labour-saving technology, increased fragmentation has gradually become a key factor in the devaluation and abandonment of land assets. To systematically identify the costs of fragmentation, we use a series of indicators such as the number of plots, the Simpson index, the plot-homestead distance and the total minimum commuting time from the homestead to all plots to measure the extent of fragmentation. A translogcost function is developed and estimated using survey data from three periods, 2011, 2014 and 2017; the data include an effective sample of 1064 household-year observations involving 6599 plot-year observations in Chongqing, China. The extent of fragmentation in the mountains of southwest China is quite serious compared with that in other countries and regions. The Simpson index is 0.63, and on average, 6.06 mu (1 mu = 666.67 m² or 1 mu = 1/15 ha) of cultivated land is distributed in 6.16 plots, while the total minimum commuting time from the homestead to all plots is approximately 45 min. An increase of one standard deviation in the number of plots, the Simpson index or total minimum commuting time would lead to cost increases of 7.1 %, 15.1 % and 12.2 %, respectively, if other conditions remain unchanged. The channel for the above result involves the changes in the cost share of inputs caused by fragmentation, which increase the labour cost share and reduce the machinery cost share. There is an inverted U-shaped relationship between farm scale and production cost with an inflection point at 47 mu; that is, costs begin to decrease when the scale exceeds 47 mu. However, the average farm scale is currently only 6.06 mu. In addition, production costs can be significantly reduced by renting-in land and implementing land consolidation. To reduce land system-induced costs in mountainous areas, the government should rationally consolidate land to achieve moderate-scale management, reduce the transaction costs of land transfers and popularize machinery suitable for complex terrain.     

Agricultural impacts and profitability of land consolidations

The study evaluates agricultural impacts and profitability of land consolidations. The study analyses how land consolidations improve the property structure and how much it reduces the farming costs. The study also calculates whether the ensuing benefits exceed the costs incurred. The study material included 12 land consolidation projects that were implemented in Finland. Standard statistical methods, production cost calculations and feasibility analyses were used to analyze the material. Overall the study showed that land consolidation is an effective and feasible land management tool for the improvement of property structure. The average production costs were discovered to decrease 15% due to the significant improvement of property structure.     

Land consolidation in Cyprus: Why is an Integrated Planning and Decision Support System required?

This paper explores issues of land fragmentation, consolidation and reallocation and argues that a new planning support system for land consolidation is needed in Cyprus because of the long duration of projects, the high operational costs and the conflicts between the stakeholders involved. An Integrated Planning and Decision Support System is proposed that integrates artificial intelligence technologies and multi-criteria decision methods with a geographical information system for use in routine land consolidation planning as well as for undertaking ex ante evaluations of land consolidation projects, as required by the European Union. A framework is provided which shows how the system will contribute to reducing the problems associated with the land consolidation process.     

Towards sustainable rural development in Central and Eastern Europe: Applying land consolidation

Over the past twenty years, social and economic decline in rural areas has intensified in the Central and Eastern European countries. A precondition for the reversal of this decline is the implementation of new policies in relation to the fundamentals of land ownership and management. In addition to addressing the problems of land ownership fragmentation, these should include measures to improve agricultural production and employment, taxation policy, and legislation to protect land ownership rights, within the context of acknowledging environmental and sustainability considerations. In Europe, the requirement for readjusting unfavourable land fragmentation and promoting the appropriate use of land combining with positive environmental solutions is expected to create new sustainable land management systems. The consolidation of land ownerships may be an effective and active land management instrument which not only addresses the problems of land fragmentation, but also, if applied sensitively, may be an instrument for delivering sustainable rural development in a wider context. The aim of this research is to investigate land consolidation as an essential tool to create sustainable rural areas in Lithuania.     

Fragmentation of land ownership in Slovakia: Evolution,context, analysis and possible solutions

Land ownership fragmentation is currently a very topical issue in Slovakia. In particular, small farmers complain that even 30 years after the end of the previous (“real socialist”) regime, there has been no significant change in the structure of agricultural land use. The subject of the article is not the land fragmentation in terms of use. In Slovakia, the problem is rather the opposite. This contribution deals with fragmentation of ownership that is mostly invisible in the landscape. Usage still dominates over the ownership and the real landowner cannot get his or her own property in a simple way. The reason for this is huge fragmentation of land ownership, which makes it virtually impossible to actually claim it. Well known solution is the land consolidation that does not advance at a rate that would guarantee the rights (and obligations) of all owners in the foreseeable future in Slovakia. Neglecting the land fragmentation by authorities leads to tense situations between landowners and land tenants and also co-causes a stagnation of rural development and issues with landscape protection. The paper describes the specific state of land ownership in Slovakia and attempts to explain this complicated situation on a sample of 50 historical and modern ownership documents. This contribution has the ambition to specify the largely yet unresolved problems that arise from the current state of massive fragmentation of land ownership. The aim of the paper is also to fill in the information gap on the topic, not only in the national context.     

Impacts and causes of land fragmentation, and lessons learned from land consolidation in South Asia

Landholdings and land parcels in South Asia are undergoing fragmentation, thereby accelerating the pace of their degradation and constraining agricultural development. Based on experiences gained in the region and elsewhere, this paper finds the fragmentation of small landholdings and tiny land parcels detrimental to land conservation and economic gain, thereby discouraging farmers from adoption of agricultural innovations. Primarily induced by the dependency of the major proportion of ever growing population on agriculture, the process of land fragmentation has been reinforced by the law of inheritance of paternal property, lack of progressive tax on inherited land, heterogeneous land quality and an underdeveloped land market. South Asian countries have had adopted policies and legal measures for facilitating land consolidation. However, desirable results were not achieved, as such interventions could not address structural causes of the problem. Broad policy and legal measures have been outlined for facilitating land consolidation in a sustainable way.     

Profit efficiency and habitat biodiversity: The case of upland livestock farmers in Ireland

This study evaluates the private economic value of biodiversity using original farm habitat data and farm household survey data from livestock farms in the hills and uplands of Ireland. Profit efficiency and biodiversity efficiency are estimated using a stochastic translog production frontier model. Results indicate that biodiversity plays a beneficial role in farm profitability but the effect is non-linear. Stocking rate and the perimeter to area ratio are found to have a negative effect on biodiversity while the number of plots per farm has a positive effect. Biodiversity efficiency is influenced by the number of livestock, habitat quality, spatial habitat patterns and arrangement, perimeter to area ratio, the number of plots, profit efficiency and farmer's education and age.     

Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies

The European Union reformed farm policy in June 2003 towards the decoupling of farm income support instruments. Available impact studies find that this reform reduces production incentives substantially for beef and to a lesser extent for arable crops. However, these studies assume that the previous reform, under Agenda 2000, already decoupled arable crop direct payments to a considerable extent, while beef premiums were linked more closely to production. Our main objective in this paper is to test the sensitivity of these results to this questionable modelling of Agenda 2000 direct payments, which neglects eligibility rules and land market imperfections. Our analysis reveals that the effects of the reform on both arable crop and beef production are always negative, however the Agenda 2000 direct payments are modelled. On the other hand, we show that, when the eligibility rules and land market imperfections are acknowledged, the production reducing effects may be much larger for arable crops than for beef. Policy implications of these results are noted.     

Differential livelihood impacts of oil palm expansion in Indonesia

In this article, the impacts of oil palm adoption on livelihoods of smallholder farm households are analyzed. The study builds on survey data from Sumatra, Indonesia. Treatment‐effects and endogenous switching regression models suggest that smallholder households benefit from oil palm adoption on average. Part of the benefit stems from the fact that oil palm requires less labor than rubber, the main alternative crop. This allows oil palm adopters to allocate more labor to off‐farm activities and/or to expand their farmland. For households with a low land‐to‐labor ratio, rubber is typically a more lucrative crop than oil palm. Depending on various social and institutional factors, households’ access to land, labor, and capital varies, contributing to impact heterogeneity. Welfare gains associated with oil palm are more pronounced among households that have formal land titles and access to additional land to expand their farm size during the process of adoption.     

A quantitative assessment of policy options for no net loss of biodiversity and ecosystem services in the European Union

The Biodiversity Strategy of the European Union includes a target to “ensure no-net-loss of biodiversity and ecosystem services by 2020”. Many policy options can be envisioned to achieve such a no-net-loss target, mainly acting on land use and land management. To assess the effectiveness of such policies at a European Union (EU) scale, we simulated land use changes and their impacts on biodiversity and ecosystem services indicators. We analysed a Business–as-Usual scenario, and three no-net-loss scenarios. The no-net-loss scenarios included measures that aim to reduce negative impacts of land use change on biodiversity and ecosystem services, by better implementation of existing biodiversity conservation measures (Scenario 1); and enhancement of existing measures (Scenario 2); and offsetting residual impacts on areas of high biodiversity and ecosystem service value (Scenario 3).Results show that none of the scenarios achieved overall no-net-loss. Compared to a Business-as-Usual scenario, the no-net-loss scenarios reduced the overall degree of land cover change at EU level, hence reducing impacts on biodiversity and ecosystem services in large parts of the EU. The more comprehensive no-net-loss scenarios resulted in a gain of natural land cover. Moreover, natural areas became better connected, especially in peri-urban areas as a result of impact avoidance and offsetting. Richness of farmland bird species was projected to increase. Measures included in the no-net-loss scenarios had net positive effects on pollination and carbon sequestration, neutral effects on crop production, erosion prevention and flood regulation, and negative effects on nature-based recreation, compared to Business-as-Usual. In particular circumstances policy measures invoked displacement effects in land use allocation, reducing the effectiveness of the measures. This was primarily the case for flood regulation services throughout the EU.This study differentiates the potential effectiveness of a no-net-loss policy framework in three manners: (i) considering biodiversity and ecosystem services simultaneously; (ii) in the light of existing policies and land use pressures; and (iii) in different land use contexts across the EU. Taken together, we conclude that achieving no-net-loss for biodiversity and ecosystem services throughout the EU remains challenging given high land use demands. Nevertheless, in large parts of Europe there appears room for improvement for certain kinds of biodiversity and ecosystem services compared to Business-as-Usual, while still meeting other land use demands.     

Greenhouse gas and groundwater recharge abatement benefits of tree crops in south-western Australian farming systems

The indirect benefits of a commercial tree crop for greenhouse gas and groundwater recharge abatement are analysed. Oil mallees are introduced into a whole-farm linear programming model as a source of income, an offset to greenhouse gas emissions from the mixed sheep and cropping enterprises and as a source of groundwater recharge abatement. The profitability of oil mallees is found to be very sensitive to the discount rate, yield and price assumptions and the relative profitability of other farm enterprises (especially the wool enterprise). Under standard assumptions where oil mallees are profitable, the trees significantly reduced greenhouse gas emissions and groundwater recharge and the farm remains profitable. If farm-level policies are introduced for greenhouse gas abatement, without tree crops or some other technological change, the current farming systems would fail and be replaced by alternative land uses.