Economic Assessment of Agricultural Land Market in Rural Nigeria

Abstract

This study examined the pattern and drivers of agricultural land market in the rural part of Oyo state, Nigeria. The demand and supply models with cross-sectional survey were used to collect data from rural farm house-heads in order to examine the pattern and drivers of agricultural land market. Descriptive statistics and ordinary least square technique were used for the analysis. The pattern of agricultural land market includes leasehold, pledge, outright or direct sale and communal farmland. In the pattern, land demanded was higher than the land supplied except for the outright sale. Land price, family size, farm income and remittances explained the elasticity of land demand, while land supply was elastic whenever there is increase in land price, nativity status, off-farm work and land size owned. Therefore, farm-family planning, gender-unbiased social organisation and effective agricultural land zoning programmes should be strengthened to encourage sustainable farm operation, and improve living standards.