Determinants and Effects of Rural Households’ Participation in Land Markets on Agricultural Output and Food Security in Siaya County, Kenya

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Otieno, David Jakinda
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African Economic Research Consortium
This study seeks to understand the determinants and effects of rural households’ participation in land markets on agricultural output and food security in the rural farming community of Siaya County, Kenya. Primary survey data from a random sample of 343 respondents were analyzed using multinomial logit (MNL) and Tobit models. The results show that 88% of respondents had participated in land markets through renting in, renting out, purchasing or selling land. The amount of land that an individual had prior to the land transaction, membership of a farmer group, monthly household income, age of the household head and household size had positive effects on the decision to rent in or purchase land. Conversely, the requirement of a lump sum payment had a negative effect on the decision and the extent of renting in or purchasing land. Maize output increased in rented in and purchased land, but declined for farmers who rented out or sold part of their land. Food insecurity incidences were higher in households that did not participate in any land market. These insights should be incorporated into local land administration, management and land use planning.
Rural households, land markets, agricultural output, food security, Kenya