Land use behavior under different institutional settings

There are different farm inheritance and succession traditions in Austria. In most regions, impartible inheritance (Anerbenrecht), in which the majority of the farm is passed on to a single heir (traditionally the oldest or youngest son), is common. In some regions of western Austria and eastern Austria partible inheritance (Realteilung), i.e. equal distribution of property among all heirs, is/was traditionally practiced. In a first step, the project examines the influence of these different traditions of inheritance and succession on agricultural land fragmentation, land ownership fragmentation and absentee landownership. In a second step, the influence of these variables (land fragmentation, land ownership fragmentation and absentee landownership) on the economic and environmental performance of farms is examined. For example, greater land fragmentation (smaller, spatially distributed fields) can lead to higher labor costs, higher production costs and lower incomes for farmers. However, greater land fragmentation could also lead to a higher diversity of land use (many different plants instead of monocultures) and thus to more biodiversity and higher soil fertility. The distribution of land ownership, in turn, has an impact on the ability of farms to grow. Currently in Austria and other European countries the rental share of farms is increasing. In Austria, the average farm rents around 1/3 of its utilized agricultural area. This can lead to a dependency of farms on landowners and to high transaction costs (many leases with different landowners). In addition, there are indications that the relationship between the landowner and the renting farmer influences land use behavior. In order to answer our research questions, we use extensive geospatial datasets: 1) the Integrated Accounting and Control System (IACS), which includes land use information at the plot-level such as crop choice and participation in agri-environmental schemes; and 2) Austrian cadaster data, containing information on legal property items and their owners, including owners place of residence. Moreover, we utilize farm-level data from the Farm Accountancy Data Network (FADN) and conduct qualitative interviews with farmers and landowners. The following research is conducted: 1.) We calculate fragmentation/concentration measures at the farm and regional level and relate them to different inheritance and succession traditions. 2.) We combine data from IACS, cadaster and bookkeeping and use efficiency analysis to investigate: i) the effect of land fragmentation and land ownership fragmentation on the efficiency of farms; and ii) if economic efficiency and environmental efficiency (e.g., crop diversity), are substitutes or complements. 3.) We investigate: i) the relationship between landlords and tenants placing a particular focus on proximity/distance; and ii) the effect of proximate vs. distant landlord- tenant relationships (e.g., residential vs. absentee landlords) on farmers soil conservation behavior.

Formal (e.g. inheritance laws, land market regulations) and informal (e.g., personal and relations between landlords and tenants, norms) institutional settings have an impact on farmers' land use and, hence, affect future land productivity and the environment. We studied how different institutional settings affect the economic and environmental outcomes of farming in Austria. To do so, we combined detailed plot-level data on land use from the Integrated Administration and Control System (IACS) with several other sources: the Farm Accountancy Data Network (FADN), weather data from the Central Institute for Meteorology and Geodynamics, landownership records from the Austrian cadaster, and historical information from the Austrian Atlas of Folk Life. We also conducted interviews with landlords. Inheritance traditions matter. In parts of Eastern Austria, both "partible" inheritance (splitting land among heirs) and "impartible" inheritance (passing land to one heir) have been practiced. Where partible inheritance prevails, farms tend to own less land overall, manage smaller and more scattered plots, and deal with more landowners. Further, women own slightly more land in partible inheritance regions than elsewhere. Farmland fragmentation has mixed effects. Farms with larger plots tend to operate more efficiently and benefit from economies of scale. The scattering of plots does not significantly reduce efficiency, but it can lower the variability of agricultural output by spreading weather and pest risks across locations. Crop diversity involves trade-offs. Farms with more diverse crops generally show lower productivity on average. However, they are more resilient in dry growing seasons. When rainfall is sufficient, the productivity cost of diversification becomes more apparent. Looking ahead, rising temperatures due to climate change are linked to notable productivity declines that crop diversification alone cannot offset. Landlord-tenant relationships shape land use. Different kinds of proximity between landowners and tenants-geographical, social, institutional, organizational, and shared understanding-affect leasing outcomes. Local, engaged landlords tend to choose tenants who care for the land and monitor their practices, while more distant landlords often offer longer-term contracts and greater autonomy. The project created a cross-disciplinary research network around the use of IACS data, laying the groundwork for more efficient and insightful research in the future.