The current study aims to investigate the agricultural investment differences among three kinds of land lease agreements and their effect on farmers’ decisions regarding sustainable growth in terms of soil conservation and wheat productivity, using cross-sectional data from rural households in Punjab, Pakistan. The “multivariate Tobit model” was used for the empirical analysis because it considers the possible substitution of investment choices and the tenancy status’ endogeneity. Compared to agricultural lands on lease contracts, landowners involved in agribusiness are more likely to invest in measures to improve soil and increase productivity. Moreover, the present study has also identified that the yield per hectare is much higher for landowners than sharecroppers, and thus, the Marshall’s assumption of low efficiency of tenants under sharecroppers is supported.

Urbanization and low productivity are real threats to the sustainability of organic farming. The adoption of farm machinery plays a vital role in overcoming these threats to ensure a sustainable and more profitable organic farming model. Farm machinery can also increase farmland yield and reduce the need for labor, although the requirement of significant capital investment often prevents small farmers from buying machinery. There is an increased need to comprehend all relevant elements associated with farming machinery procurement and service delivery. In this article, we provide insight into the impact of different variables of farmers on the adoption of agricultural equipment. A total of 301 organic farmers were surveyed in three districts of Punjab, Pakistan. It was found that the most common machinery concerned herein are tube-well/pumps, tractors, tillage machinery, and thrashers/harvesters. Results from a multinomial probit estimation showed that farm machinery ownership is positively correlated with capital assets, civil infrastructure, alternative sources of power, and credit facility. The findings indicated that policymakers and stakeholders should not concentrate merely on short term planning, such as improving agricultural machinery’s adoption rate. Still, they should also strive to upgrade physical infrastructure and facilities and provide credit services to create an enabling environment that can empower the citizen in adopting large scale use of agricultural machinery for long term sustainability of organic farming.

This study investigated the impact of three land tenure arrangements on organic farming (OF) in terms of increment of efficiency, yield, and investment in soil-improving activities by using farm-level data gathered from three districts located at Punjab, Pakistan. A multivariate tobit model that captured the probable substitute and investment choices, as well as the endogenous nature of land tenure arrangements, has been employed in this analysis. The empirical outcomes displayed that rights of land use affected the decisions made by farmers to invest in land and to improve efficiency. In detail, owner-farmers with secure rental arrangements invested more in improving their land and productivity compared to those with unsecured lease agreements. The yield per hectare was the highest for owner cultivation farm, while sharecropper output seemed the lowest, which are in agreement with the hypothesis of Marshallian inefficiency.