The impact of long-term land leases on farm investment: Evidence from the Irish dairy sector

dc.contributor.authorBradfield, Tracy
dc.contributor.authorButler, Robert
dc.contributor.authorDillon, Emma J.
dc.contributor.authorHennessy, Thia
dc.contributor.authorLoughrey, Jason
dc.contributor.funderTeagascen
dc.date.accessioned2023-02-01T16:01:06Z
dc.date.available2023-02-01T16:01:06Z
dc.date.issued2023-01-17
dc.date.updated2023-02-01T15:41:26Z
dc.description.abstractThe European Union milk quota abolition in 2015 resulted in rapid dairy farm expansion across many Member States. Continued production growth requires both capital and herd investment with secure access to land resources being important for new and expanding farmers. As land sales and rental remain low in Ireland, tax incentives to encourage long-term land rental were increased in 2015. This paper assesses the influence of the length of land leases on dairy farm investment using farm-level data from 2015 to 2018 in the context of low levels of land sales and land rental, and liberal market regulations in Ireland. We find a positive association between lease lengths and both the probability and level of capital investment which is particularly important for farmers with a high portion of land rented in. We find that herd investment is not influenced by the duration of land leases. Our findings call for an extension of policies that encourage land rental on secure leases, especially for young farmers, to increase certainty and support growth in the industry.en
dc.description.sponsorshipTeagasc (Walsh Scholarship)en
dc.description.statusPeer revieweden
dc.description.versionPublished Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.articleid106553en
dc.identifier.citationBradfield, T., Butler, R., Dillon, E. J., Hennessy, T. and Loughrey, J. (2023) 'The impact of long-term land leases on farm investment: Evidence from the Irish dairy sector', Land Use Policy, 126, 106553 (9pp). doi: 10.1016/j.landusepol.2023.106553en
dc.identifier.doi10.1016/j.landusepol.2023.106553en
dc.identifier.endpage9en
dc.identifier.issn0264-8377
dc.identifier.journaltitleLand Use Policyen
dc.identifier.startpage1en
dc.identifier.urihttps://hdl.handle.net/10468/14181
dc.identifier.volume126en
dc.language.isoenen
dc.publisherElsevier Ltd.en
dc.rights© 2023, the Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).en
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/en
dc.subjectDairyen
dc.subjectLand rentalen
dc.subjectLease lengthen
dc.subjectRental termen
dc.subjectTenure securityen
dc.titleThe impact of long-term land leases on farm investment: Evidence from the Irish dairy sectoren
dc.typeArticle (peer-reviewed)en
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