The Farmland Rental Paradox: Extreme land ownership fragmentation as a new form of land degradation

Extreme farmland ownership fragmentation is becoming a limiting factor for sustainable land management in some countries. Scattered, excessively small parcels cease to be viable for individual farming, and owners feel forced to rent these parcels to larger enterprises farming on adjacent land. Our study demonstrates a phenomenon that we call the Farmland Rental Paradox, where very small parcels tend to create large production blocks by being rented to larger farmers, and therefore to significantly homogenize the land-use pattern. The parcel size established as the threshold for this phenomenon is 1.07 ha. Below this threshold, the smaller the parcels were, the larger the blocks that they tended to create. Using the example of the Czech Republic, a state with extremely high farmland ownership fragmentation, it is demonstrated that this phenomenon can currently determine the land use of up to 40% of the country's farmland. Our study also points to other countries where this phenomenon may apply, especially the transitional countries of Central and Eastern Europe. The study discusses the tempo of the fragmentation process, which accelerates exponentially in countries with the equal inheritance system. It goes on to discuss defragmentation, social impacts of the dominance of the land rental market, and environmental impacts of significant homogenization of the land-use pattern. The serious negative impacts of extreme land-ownership fragmentation show that this phenomenon can be considered as a significant form of land degradation.