Hostname: page-component-78c5997874-t5tsf Total loading time: 0 Render date: 2024-11-08T11:30:53.346Z Has data issue: false hasContentIssue false

Effects of Socio-Institutional and Emotional Factors on Japanese Farmland Rental Transactions

Published online by Cambridge University Press:  28 April 2015

Yoji Kunimitsu*
Affiliation:
Department of Rural Planning, National Institute for Rural Engineering, Tsukuba, Japan

Abstract

Farmland reallocation between farmers through rental transactions is critical for improving Japanese rice productivity. This study examined effects of socio-institutional and emotional factors as well as economic factors on rental transactions. A stochastic choice model was applied to contingent valuation data by considering regional heteroscedasticity. Empirical results showed (1) existence of economic inefficiencies, 3% loss of economic surplus due to socio-institutional restriction, which is probably reflected in transaction costs; (2) a 15% reduction in surplus due to emotional reluctance of farmers; and (3) strong influences of rice price, wages, and geographical location on the rental rate and agreement level.

Type
Articles
Copyright
Copyright © Southern Agricultural Economics Association 2006

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Boisvert, R.N., Schmit, T.M., and Regmi, A.. “Spatial, Productivity, and Environmental Determinants of Farmland Values.American Journal of Agricultural Economics 79(1997): 1657-64.CrossRefGoogle Scholar
Brown, N.J., and Rosen, H.S.. “On the Estimation of Structural Hedonic Price Models.Econometrica 50(1982):765-69.CrossRefGoogle Scholar
Chambers, R.G., and Quiggin, J.. “The State-contingent Properties of Stochastic Production Functions.American Journal of Agricultural Economics 84(2002):513-26.CrossRefGoogle Scholar
Demir, N., and Mahmud, S.F.. “Agro-climatic Conditions and Regional Technical Inefficiencies in Agriculture.Canadian Journal of Agricultural Economics 50(2002):269-80.CrossRefGoogle Scholar
Elad, R.L., Clifton, I.D., and Epperson, J.E.. “Hedonic Estimation Applied to the Farmland Market in Georgia.Journal of Agricultural and Applied Economics 26(1994):351-66.CrossRefGoogle Scholar
Godo, Y.The policy mix of rice price policy and mandatory set aside policy.Economic Research 44(1993):3240. [In Japanese]Google Scholar
Hidano, N.How to Conduct the Contingent Valuation Method.” Kankyo to Gyosei no Keizaih-yoka. Hidano, N., ed., pp. 41114. Tokyo: Keiso Shobo, 1999. [In Japanese]Google Scholar
Ito, J.The Rice Production Income and Rental Demand of Farmland under Mandatory Set Aside Policy.Journal of Rural Economics 65(1993): 137-47. [In Japanese]Google Scholar
Japan Institute of Irrigation and Drainage (JIID). “Report on Economic Evaluations and Follow-Ups of Land Consolidation Projects.” (Government report) JIID, ed., 2000. [In Japanese]Google Scholar
Japan Institute of Irrigation and Drainage (JIID). “Report on Economic Evaluations and Follow-ups of Land Consolidation Projects II.” (Government report) JIID, ed., 2001. [In Japanese]Google Scholar
Kumbhakar, S.C.Efficiency Estimation in a Profit Maximizing Model Using Flexible Production Function.Agricultural Economics 10(1994): 143-52.CrossRefGoogle Scholar
Kunimitsu, Y.Impacts of Paddy-field Consolidation Projects on Farmland Rental Transactions: Application of Discrete Choice Model.Japanese Journal of Rural Economics 7(2005):4960.Google Scholar
Kuroda, Y.Research and Extension Expenditures and Productivity in Japanese Agriculture: 19601990.Agricultural Economics 16(1997): 111-24.CrossRefGoogle Scholar
Ministry of Agriculture, Fishery and Forestry (MAFF), “Report of Agricultural Census 2000,” Association of Agriculture and Forestry Statistics, 2001 (In Japanese).Google Scholar
Plantinga, A.J., and Miller, D.J.. “Agricultural Land Values and the Value of Rights to Future Land Development.Land Economics 77(2001):5667.CrossRefGoogle Scholar
Rustichini, A., Satterthwaite, M.A., and Williams, S.R.. “Convergence to Efficiency in a Simple Market with Incomplete Information.Econometrica 62(1994): 1041-63.CrossRefGoogle Scholar
Shogenji, S.The Structure of Farmland Market and Intensive Use of Farmland.” Gendai Nausei no Keizai Bunnseki. Shogenji, S., ed., pp. 1924. Tokyo: University of Tokyo Press, 1998. [In Japanese]Google Scholar
Xu, F., Mittelhammer, R.C., and Barkley, P.W.. “Measuring the Contribution of Site Characteristics to the Value of Agricultural Land.Land Economics 69(1993):356-69.CrossRefGoogle Scholar