DO PRIVATE PROPERTY RIGHTS HAVE AN EFFECT ON FARMERS ’ INCENTIVES FOR SOIL CONSERVATION?

Soil degradation has developed into a global problem that threatens food security of millions of people by annually causing serious damage and lowering productivity of hundreds of millions of hectares of arable land. Soil conservation measures that are aimed at abating or preventing various types of soil degradation can thus hold one of the keys to solving the worsening global food crisis. This paper examines one of the several factors that induce a farmer to invest in soil conservation measures- the property right. Aim of this study is to identify the elements of a property right that actually induce the farmer to undertake soil conservation. The topic was investigated by comparing two different property rights regimes: the Soviet permanent user right system applied on private household plots and the private property rights enforced in Georgia since 1992 after the privatization of agricultural land. Results of the study reveal that both of the economic systems provided essential incentives for undertaking soil conservation measures. According to the study, the necessary conditions are a possibility to raise income from land and to pass the land on as heritage. The privatization should also be widely accepted by the community because it creates legitimacy for the established private property rights