From Short to Longer Term Contracts: Factors Affecting Participation in Farmland Longer Rentals in Razan County, Iran

Although it has some benefits, short-term farmland rental transactions have had negative consequences such as excessive use of water, overuse of chemical fertilizers and pesticides, and farmland degradation. Why are landowners more engaged in short-term land rental contracts and less involved in longer rental contracts, that are more associated with incentives to invest and sustainably use farmland? Based on a post positivist worldview, the present study has chosen a quantitative approach and used a survey strategy to explore factors affecting the participation of landholders in longer farmland rental markets. Using multi-stage sampling, 250 landholders in Razan County who had rented their land, at least once in the past five years, were selected. The study indicated that the landholders’ motivations to rent out their farmlands changed by their place of residence (rural/urban). The identified barriers and drivers that require policy attention broadly focus on the security of farmland property rights, competence of tenants and kinship contracts, high risk and profitability of farming activities, and capital constraints in rural areas.