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Dynamics of Land Rent Transactions and Agricultural Production: A Case Study of Asayita Woreda, Afar Region

2025/07/04 by Ali, Abdurhman Kedir
#FOS: Economics and business

paper · doi:10.20372/dijbar67896.v6i2.2024

Abstract

This study investigates dynamics of land rent transactions and agricultural production in Asyaita Woreda, Afar region. The study employed cross-sectional data from 271 randomly selected households. Data were collected using a semi-structured questionnaire and checklist. Logistic and Tobit regression were used to determine characteristics influencing land market transactions and household participation levels in the research area. In the logistic regression model, marital status shows a p-value of less than 0.05, family size and distance from the market center have p-values of less than 0.001, and land size has a p-value of less than 0.1, indicating their respective significance levels in determining participation in the land rental market. The Tobit regression model indicates that land size and land certification have a pvalue of <0.01, tenure security and agricultural extension services have a p-value of <0.05, and land ownership and tropical livestock units have a p-value of <0.1. All these factors significantly influence the intensity of participation in the land rental market. Finally, this study has important policy implications, indicating that programs, projects, and/or interventions designed to engage people in rental market activities should be designed in collaboration with stakeholders to capacitate and improve land rental market participation and levels.

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