Land Rental Transactions in Ethiopian Peri-Urban Areas: Sex and Other Factors for Land Rent Transactions

Abstract

The continuous reduction in peri-urban agricultural land due to spatial urban expansion forces subsistence farmers to seek arable land through different land access strategies. Among these, land rental transactions are crucial for accessing arable land across different regions. This study aimed to examine factors affecting land rental transactions in the peri-urban areas of the East Gojjam Administrative Zone in Ethiopia. Data were collected from 353 household heads of peri-urban areas, who were affected by expropriation. A total of 350 valid responses were analyzed using descriptive and inferential statistics and an econometrics model. The results indicated that 58% of the respondents participated in both renting and renting out land, which underlines the importance of land rental transactions in the peri-urban areas. Specifically, 60% of female-headed households were engaged in land rental transactions, with 14% renting in and 46% renting out land. In contrast, 38% of the male-headed respondents rented land, while only 19% rented out land. The model result identified sex, landholding size, number of oxen, participation in off-farm activities, and extension service as significant determinant variables for renting land. Households made land rental agreements both orally and in written documents, with oral agreements being more prevalent. Transaction dues were conducted through sharecropping and fixed rents, with sharecropping being the most common method. Thus, land rental transactions play pivotal roles to support the livelihoods of peri-urban subsistence farmers.