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Barriers and Enablers of Long‐term Land Leasing: a Case Study of Northern Ireland

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  • Adewale Henry Adenuga
  • Claire Jack
  • Ronan McCarry
  • Paul Caskie

Abstract

Long‐term land leasing offers a viable alternative to land ownership in relation to increasing efficiency of agricultural production, economies of scale, and delivering environmental improvements in terms of land management. However, with no significant tenanted sector in Northern Ireland, access to land via long‐term land leasing is limited. This study analysed the barriers and enablers of long‐term land leasing. To achieve our objective, we employed a mixed methods approach. The results show that the main barriers to long‐term land leasing were environmental concern (around how the land will be managed), inheritance tax implications and the potential effect of long‐term land leasing on future succession plans of the farm business. We also found that as much as 70 per cent of the farmers surveyed believe the inclusion of a ‘break clause’ and the introduction of income tax incentives will encourage the adoption of long‐term land leasing, while 61 per cent of the farmers stated that the environmental management of the land will encourage long‐term land leasing. The study concluded that any model designed to encourage long‐term land leasing in Northern Ireland should include clauses which cover the environmental management of the land and break clauses. Income tax incentives for landowners could also be considered. La location foncière à long terme offre une alternative viable à la propriété foncière en ce qui concerne l'augmentation de l'efficacité de la production agricole, les économies d'échelle et l'amélioration de l'environnement en termes de gestion des terres. Cependant, en l'absence d'un secteur locatif notable en Irlande du Nord, l'accès au foncier via la location à long terme est limité. Cette étude a analysé les obstacles et les catalyseurs de la location foncière à long terme. Pour atteindre notre objectif, nous avons utilisé une approche mixte en termes de méthode. Les résultats montrent que les principaux obstacles à la location de terres à long terme étaient les préoccupations environnementales (concernant la manière dont la terre sera gérée), les implications en matière de droits de succession et l'effet potentiel de la location de terres à long terme sur les futurs plans de succession de l'entreprise agricole. Nous avons également constaté que pas moins de 70 pour cent des agriculteurs interrogés pensent que l'inclusion d'une « clause de rupture » et l'introduction d'avantages fiscaux encourageront l'adoption de la location à long terme, tandis que 61 pour cent des agriculteurs ont déclaré que la gestion environnementale du foncier favorisera la location foncière à long terme. L'étude a conclu que tout modèle conçu pour encourager la location foncière à long terme en Irlande du Nord devrait inclure des clauses couvrant la gestion environnementale des terres et des clauses de rupture. Des incitations fiscales pour les propriétaires fonciers pourraient également être envisagées. Langfristige Pacht bietet eine praktikable Alternative zum Landeigentum, wenn es darum geht, die Effizienz der landwirtschaftlichen Produktion zu steigern, Größenvorteile zu erzielen und ökologische Verbesserungen bei der Landbewirtschaftung zu erreichen. Da es in Nordirland jedoch keinen bedeutenden Pachtsektor gibt, ist der Zugang zu Land über eine langfristige Landpacht begrenzt. In dieser Studie wurden die Hindernisse und Voraussetzungen für die langfristige Verpachtung von Land analysiert. Um unser Ziel zu erreichen, haben wir unterschiedliche Methoden verwendet. Die Ergebnisse zeigen, dass die Hindernisse für die langfristige Verpachtung von Land hauptsächlich aus Umweltaspekten (in Bezug auf die Bewirtschaftung des Landes), Auswirkungen der Erbschaftssteuer und potenziellen Auswirkungen der langfristigen Verpachtung auf die Nachfolgeplanung des landwirtschaftlichen Betriebs waren. Wir fanden auch heraus, dass 70 Prozent der befragten Landwirtinnen und Landwirte glauben, dass die Aufnahme einer Ausstiegsklausel und die Einführung von Einkommenssteueranreizen die Einführung von langfristiger Landpacht fördern wird, während 61 Prozent der Landwirtinnen und Landwirte angaben, dass das Umweltmanagement langfristige Landpachten fördern wird. Die Studie kam zu dem Schluss, dass jedes Modell, das die langfristige Verpachtung von Land in Nordirland fördern soll, Klauseln enthalten sollte, die das Umweltmanagement des Landes sowie Ausstiegsklauseln umfassen. Einkommenssteueranreize für Landbesitzerinnen und Landbesitzer könnten ebenfalls in Betracht gezogen werden.

Suggested Citation

  • Adewale Henry Adenuga & Claire Jack & Ronan McCarry & Paul Caskie, 2023. "Barriers and Enablers of Long‐term Land Leasing: a Case Study of Northern Ireland," EuroChoices, The Agricultural Economics Society, vol. 22(2), pages 20-27, August.
  • Handle: RePEc:bla:eurcho:v:22:y:2023:i:2:p:20-27
    DOI: 10.1111/1746-692X.12404
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    References listed on IDEAS

    as
    1. Georgina Milne & Andrew William Byrne & Emma Campbell & Jordon Graham & John McGrath & Raymond Kirke & Wilma McMaster & Jesko Zimmermann & Adewale Henry Adenuga, 2022. "Quantifying Land Fragmentation in Northern Irish Cattle Enterprises," Land, MDPI, vol. 11(3), pages 1-16, March.
    2. Davis, John & Caskie, Paul & Wallace, Michael, 2013. "Promoting structural adjustment in agriculture: The economics of New Entrant Schemes for farmers," Food Policy, Elsevier, vol. 40(C), pages 90-96.
    3. Johan Swinnen & Pavel Ciaian & d’Artis Kancs, 2008. "Functioning of Land Markets in the EU Member States," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 51(2), pages 48-62.
    4. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2021. "The Case for Long-Term Land Leasing: A Review of the Empirical Literature," Land, MDPI, vol. 10(3), pages 1-21, March.
    5. Jason Loughrey & Trevor Donnellan & Kevin Hanrahan, 2020. "The Agricultural Land Market in the EU and the Case for Better Data Provision," EuroChoices, The Agricultural Economics Society, vol. 19(1), pages 41-47, April.
    6. Johan Swinnen & Kristine Van Herck & Liesbet Vranken, 2016. "The Diversity of Land Markets and Regulations in Europe, and (some of) its Causes," Journal of Development Studies, Taylor & Francis Journals, vol. 52(2), pages 186-205, February.
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