Open Access

Soil Investments on Rented versus Owned Plots: Evidence from a Matched Tenant-Landlord Sample in Malawi

Jacob Ricker-Gilbert, Jordan Chamberlin and Joseph Kanyamuka

Article Figures & Data

  • Table 1 Descriptive Comparisons between Tenant and Landlord
     TenantLandlordDifference: Tenant-Landlord
    MeanStd. Dev.MeanStd. Dev.
    Education of household head in years of schooling7.754.364.653.683.10***
    Prerental landholding in ha0.831.071.881.56−1.05***
    Number of household members5.472.385.002.180.47*
    =1 if household head is female0.11***0.310.260.44−0.15***
    Age of household head in years40.50***12.1847.5516.17−7.05***
    Savings in USD80***265103270***
    Value of assets in USD737**3,149117274620**
    Number of plots cultivated by the household3.60***2.042.141.201.46***
    Average walking distance to plots (minutes)31.3524.5923.2221.318.13***
    =1 if member of household is member of village savings and loan association0.510.500.440.500.07
    Walking distance to nearest extension officer (minutes)32.05145.6645.51122.15−13.46
    • Note: The number of household-level observations is 169 tenants and 169 landlords.

    • ***, **, * Significance at the 1%, 5%, and 10% levels, respectively.

  • Table 2 Input Use and Investment by Plot Ownership and Cultivation Status
     (1)(2)(3) 
    Tenant’s Rented-In PlotTenant’s Owner-Cultivated PlotsLandlord’s Owner-Cultivated PlotsDifference
    MeanStd. Dev.MeanStd. Dev.MeanStd. Dev.(1)-(2)(1)-(3)(2)-(3)
    Input Use
    Number of times the plot was weeded1.54(0.79)1.49(0.83)1.56(0.83)
    1=applied herbicide0.21(0.41)0.24(0.43)0.09(0.28)******
    kg of inorganic fertilizer applied /ha221(227)225(227)152(203)******
    1=hybrid maize was main crop0.34(0.47)0.43(0.50)0.34(0.47)****
    Investment
    1=intercropped maize and legume0.21(0.41)0.21(0.41)0.26(0.44)
    1=applied animal manure0.14(0.34)0.26(0.44)0.21(0.41)*****
    1=applied green compost0.07(0.25)0.11(0.31)0.15(0.35)***
    1=used minimum tillage0.05(0.22)0.13(0.34)0.13(0.33)******
    • Note: N = 347 in column (1), N = 266 in column (2), N = 335 in column (3). The Bonferroni multiple comparison test was used to test means among groups.

  • Table 3 Differences between Landlord’s Owner-Cultivated and Rented-Out Plots
     (1)(2)
    Landlord’s Owner-Cultivated PlotsLandlord’s Rented-Out Plots
    MeanStd. Dev.MeanStd. Dev.
    =1 if landlord views the soil as good or very good0.450.500.470.50
    =1 if landlord perceives someone likely or very likely to challenge tenure status of plot0.100.300.140.35
    =1 if topsoil is acidic (<5.2 pH) in top soil0.190.390.160.37
    Soil organic matter (%) in top soil2.421.352.221.19
    Phosphorus (ppm) in top soil37.1923.3538.2722.76
    =1 if fruit trees on plot0.42***0.500.25***0.44
    • Note: N = 137 in column (1), N = 108 in column (2).

    • *** The investment on plot is statistically different from each other at the 1% level.

  • Table 4 Factors Affecting Plot-Level Input Use
    Variable(1)(2)(3)(4)
    No. Times Plot Was Weeded1=Applied HerbicideInorganic Fertilizer Applied (kg/ha)1=Hybrid Maize as Main Crop
    = 1 if plot rented in and cultivated by tenant Embedded Image−0.04
    (0.131)
    0.07
    (0.047)
    61.01**
    (29.107)
    −0.03
    (0.059)
    =1 if plot owned and cultivated by tenant Embedded Image−0.03
    (0.116)
    0.08*
    (0.047)
    78.07***
    (27.846)
    0.08
    (0.061)
    Education of household head in years of schooling−0.00
    (0.010)
    −0.01**
    (0.005)
    3.04
    (2.624)
    0.01*
    (0.006)
    Area owned by household pre-land-renting, in ha0.01
    (0.032)
    0.02
    (0.016)
    −1.81
    (11.136)
    0.01
    (0.021)
    Number of members in household−0.01
    (0.022)
    0.01
    (0.009)
    −14.91***
    (5.402)
    −0.01
    (0.013)
    =1 if HH is female0.15
    (0.154)
    −0.06
    (0.045)
    16.89
    (28.820)
    −0.05
    (0.077)
    Age of household head in years−0.00
    (0.004)
    −0.01***
    (0.002)
    0.33
    (0.760)
    0.00
    (0.002)
    Savings in USD*1,0000.00
    (0.000)
    −0.00
    (0.000)
    0.01
    (0.030)
    −0.00
    (0.000)
    Value of assets in USD*100−0.00
    (0.000)
    −0.00
    (0.000)
    0.00
    (0.002)
    −0.00*
    (0.000)
    Number of plots cultivated by household−0.02
    (0.025)
    0.03**
    (0.014)
    2.31
    (6.455)
    0.01
    (0.014)
    Plot distance from house (walking minutes)0.003*
    (0.001)
    −0.00
    (0.001)
    0.02
    (0.517)
    −0.00
    (0.001)
    =1 if member of household is in a village savings and loan association0.00
    (0.106)
    −0.06
    (0.044)
    9.95
    (22.386)
    0.07
    (0.060)
    Distance to the nearest ag. extension officer from residence (walking minutes)−0.00
    (0.000)
    0.00
    (0.000)
    0.05
    (0.099)
    0.0002**
    (0.000)
    Embedded Image−0.01
    (0.074)
    −0.02
    (0.026)
    −17.05
    (0.371)
    −0.11**
    (0.040)
    Rental-pair fixed effectsYesYesYesYes
    R-squared0.0170.1030.0470.021
    Observations948948948948
    • Note: The base category for comparing Embedded Image estimates is a landlord’s owner-operated plot(s). Standard errors are in parentheses. Models include a constant and district-level FEs. Districts are not completely collinear with the rental-pair location because we found four cases of tenants and landlord pairs residing in different districts. The number of observations = 948, with 169 matched tenant-landlord pairs; Embedded Image and Embedded Image are compared with the landlord’s owner-cultivated plot.

    • ***, **, * Significance at the 1%, 5%, and 10% levels, respectively.

  • Table 5 Factors Affecting Plot-Level Soil Fertility Investments
    Variable(1)(2)(3)(4)
    1=Intercropped Maize and Legume1=Applied Animal Manure1=Applied Green Compost1=Used Minimum Tillage
    = 1 if plot rented in and cultivated by tenant Embedded Image0.04
    (0.048)
    −0.05
    (0.049)
    −0.07**
    (0.034)
    −0.02
    (0.051)
    = 1 if plot owned and cultivated by tenant Embedded Image0.08
    (0.047)
    0.06
    (0.054)
    −0.02
    (0.038)
    0.03
    (0.051)
    Education of household head in years of schooling−0.00
    (0.005)
    −0.01
    (0.006)
    0.00
    (0.004)
    −0.00
    (0.006)
    Area owned by household pre land-renting, in hectares−0.02
    (0.020)
    0.01
    (0.021)
    −0.02
    (0.012)
    0.03
    (0.024)
    Number of members in household0.02**
    (0.009)
    −0.02***
    (0.009)
    −0.01
    (0.007)
    0.01
    (0.010)
    =1 if household head is female0.06
    (0.063)
    −0.10*
    (0.059)
    −0.00
    (0.034)
    0.01
    (0.046)
    Age of household head in years0.00
    (0.001)
    0.00
    (0.002)
    0.00*
    (0.001)
    0.00
    (0.001)
    Savings in USD*1,0000.00*
    (0.000)
    0.0002*
    (0.000)
    0.00
    (0.000)
    0.00
    (0.000)
    Value of assets in USD*1,000−0.00
    (0.000)
    −0.00
    (0.000)
    −0.008***
    (0.000)
    −0.01***
    (0.000)
    Number of plots cultivated by household−0.05***
    (0.013)
    −0.01
    (0.018)
    0.00
    (0.009)
    −0.01
    (0.013)
    Plot distance from house
    (walking minutes)
    0.00
    (0.001)
    −0.00
    (0.001)
    −0.00
    (0.001)
    −0.00
    (0.001)
    =1 if member of household is in a village savings and loan association0.07*
    (0.042)
    0.01
    (0.057)
    0.03
    (0.042)
    0.03
    (0.036)
    Distance to the nearest ag. extension officer from residence
    (walking minutes)
    0.0002*
    (0.000)
    0.00
    (0.000)
    0.00
    (0.000)
    −0.00
    (0.000)
    Embedded Image−0.04
    (0.028)
    −0.11***
    (0.034)
    −0.05**
    (0.022)
    −0.05*
    (0.026)
    Rental-pair fixed effectsYesYesYesYes
    R-squared0.0460.0410.0380.046
    Observations948948948948
    • Note: The base category for comparing Embedded Image estimates is a landlord’s owner-operated plot(s). Standard errors are in parentheses. Models include a constant and district-level FEs. Districts are not completely collinear with the rental-pair location because we found four cases of tenants and landlord pairs residing in different districts. The number of observations = 948, with 169 matched tenant-landlord pairs; Embedded Image and Embedded Image are compared with the landlord’s owner-cultivated plot.

    • ***, **, * Significance at the 1%, 5%, and 10% levels, respectively.

  • Table 6 Factors Affecting the Plot the Landlord Decides to Rent Out
    Dependent Variable (=1 if plot rented out, =0 if owner cultivated)(1)(2)(3)(4)(5)
    =1 if landlord views soil as good or very good0.11
    (0.167)
    0.02
    (0.160)
    =1 if topsoil is acidic
    (<5.2 pH) in topsoil
    −0.05
    (0.156)
    −0.04
    (0.145)
    Organic matter
    (%) in topsoil
    −0.07
    (0.042)
    −0.06
    (0.043)
    Phosphorus
    (ppm) in topsoil
    0.00
    (0.003)
    0.00
    (0.003)
    Fruit trees on the plot−0.49***
    (0.121)
    −0.51***
    (0.120)
    =1 if landlord perceives someone likely to challenge tenure status of plot0.29
    (0.197)
    0.33*
    (0.182)
    Landlord fixed effectsYesYesYesYesYes
    R-squared0.0040.0180.0970.0160.137
    Observations245245245245245
    • Note: Standard errors are in parentheses. Models include a constant and district-level FEs. Districts are not completely collinear with the rental-pair location because we found four cases of tenants and landlord pairs residing in different districts. The number of observations = 245, with 137 owner-operated plots and 108 rented-out plots.

    • ***, **, * Significance at the 1%, 5%, and 10% levels, respectively.