Speaker
Description
This study explores the interactions between land policy and the social network of farmland markets and inform the design of future land policies in Scotland and Japan where dynamic land pattern changes can be observed (Hashiguchi, 2014; Combe et al., 2020). Specifically, it aims to understand how social networks and government institutions work in the market, based on the theoretical framework drawn from New Economic Sociology (NES) (Granovetter, 2017) and New Institutional Economics (NIE) (Williamson, 2013). For this, Qualitative Social Network Analysis (Hollstein, 2011; Scott, 2017) is conducted as following steps in one local community selected in each country, in order to examine the function of trust which represents the NES position and the government support which reflects the NIE position as the market channels. Moreover, the contribution of brokers among actors (Burt, 2005) as well as their impacts on Transaction Costs (TCs) (Ciaian et al., 2012) are described.
Step1) Mapping the entire social network of a farmland market through structured interviews (e.g. Who are the landowners/tenants?, Where do the landowners/tenants live?, Are there intermediary agents?)
Step2) Tracing the connections between actors using Multiple Choice Questions (e.g. Relationship: Relative, Neighbour, Friend or acquaintance, Business associate, Land advertised., How to make contact: In person, Local events, Government support., Reason why transact the land: Price or rent, Obligation, Trust, Reputation, Government support.)
Step3) Understanding the role of brokers and their contribution to TCs, with in-depth interviews (e.g. What are the advantages you offer compared to direct transactions? etc.)
The main results are as follows: 1) Despite of a large difference in the numbers of actors involved due to the different size of the land parcels, with approximately 10 actors in the Scottish case and more than 40 actors in the Japanese case, there are similarities in the nature of farmland markets where land is transacted mainly among relatives, neighbours and friends in and around the local community through direct personal contacts. Also, “Trust” is chosen as one of the main reasons underlying the transactions in both countries, although it is selected more often in Japan than in Scotland, where “Price” is also important.
2) Regarding brokers, there are similarities in the function of public institutions but also notable differences in the types of private broker operating in each country. In spite of the considerable differences that large private agents work in Scotland whereas individual landowners function as private brokers in Japan, both work in tightly knit communities and build close relationships with farmers and landowners to obtain information about the land.
3) When it comes to the impacts on TCs, farmers and landowners find that direct transactions can reduce implementation costs in both countries, whereas transactions intermediated by private brokers can reduce search costs especially in Scotland. In addition, transactions intermediated by governmental institutions could reduce negotiation costs by functioning as an independent intermediary between parties.
To conclude, it is clear that farmland markets are embedded in the social networks that exist within and around a local community and trust among network helps to ensure that the personal connections between actors in local markets become the channels for many land transactions in both countries. Especially, trusted brokers play a key role in the market to reduce the TCs. Policy makers need to understand the importance of human relationships in farmland markets and engage with stakeholders. Government involvement in, and interaction with, existing social networks in farmland markets could make an important contribution to deliver the land policy goals.
References
Burt, RS. (2005) Brokerage and closure: an introduction to social capital. Oxford, New
York: Oxford University Press.
Ciaian, P., Kancs, dA., Swinnen, J., et al. (2012) Institutional Factors Affecting
Agricultural Land Markets. [Online] available at: https://www.ceps.eu/ceps-publications/institutional-factors-affecting-agricultural-land-markets/
Combe, M., Glass, J. and Tindley, A. (2020) Land Reform in Scotland: History, Law and Policy. Edinburgh: Edinburgh University Press.
Granovetter, MS. (2017) Society and economy: framework and principles. Cambridge, Massachusetts: The Belknap Press of Harvard University Press.
Hashiguchi, T. (2014) Japan’s Agricultural Policies After World War II: Agricultural Land Use Policies and Problems. In Usio, N. and Miyashita, T. (eds.) Social-Ecological Restoration in Paddy-Dominated Landscapes. Springer.
Hollstein, B. (2011) Qalitative Approaches. In Scott, J. and Carrington, PJ. (eds) The SAGE Handbook of Social Network Analysis. London: SAGE Publications.
Scott, J. (2017) Social Network Analysis. London: SAGE Publications.
Williamson, OE. (2013) The transaction cost economics project: the theory and practice of the governance of contractual relations. Cheltenham, Northampton: Edward Elgar.
| Keywords | Social Network; Farmland Market; Trust; Transaction Costs |
|---|---|
| Best Congress Paper Award | Yes |
