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Dynamics of Phosphorus Fertilization and Liming Under Land Tenure Insecurity

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  • Myyra, Sami
  • Pietola, Kyosti

Abstract

This article solves and characterizes optimal decision rules to invest in irreversible land improvements conditional on land tenure insecurity. Economic model is a normative dynamic programming model with known parameter for the one period returns and transition equations. The decision rules are solved numerically conditional on alternative scenarios on the likelihood that the lease contract and, thus, farmer access to land is either renewed or expires. The model parameters represent Finnish soil quality and production conditions. The results suggest that irreversible land improvements decrease quickly and the yields decline gradually when the farmer is confronted with land tenure insecurity caused by uncertain renewal of the lease contract.

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File URL: http://purl.umn.edu/24633
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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24633.

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Date of creation: 2005
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Handle: RePEc:ags:eaae05:24633

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Related research

Keywords: agriculture; dynamic programming; Land Economics/Use; Q15; Q21;

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  1. Holden, Stein & Yohannes, Hailu, 2001. "Land redistribution, tenure insecurity, and intensity of production: a study of farm households in southern Ethiopia," CAPRi working papers 21, International Food Policy Research Institute (IFPRI).
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