Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 22 ISSUE 2
Written by Minko GEORGIEV, Dafinka, GROZDANOVA, Boryana IVANOVA, Rositsa BELUHOVA-UZUNOVA, Mariyana SHISHKOVA

The study aims to assess the dualistic impact of the rents and transaction costs on the farmers regarding agricultural land use. The theoretical framework is based on Rent-seeking (RS) theory and the Transaction cost of economics (TCE). The review of both doctrines explains the "outflow" or "absorption" of value. The study observes the negative aspects of maximizing the functions of farmers with rents. They lead to distortions related to monopolies or unlimited market power. On the one hand, transaction costs are setting market inefficiencies due to the lack of consolidation of property rights and loss of time. On the other hand, rents can positively contribute to the mobility of other factors and, hence, the more efficient allocation of the resources. The transaction costs represent a positive effect of the risk distribution associated with the use of resources, which determines their positive role in protecting property rights. The study uses different methods, such as comparative institutional analysis, which retrospectively shows the effect of the institutional change and, more importantly, the impact of rent-seeking and transaction costs on main actors in the agricultural sector. The study aims to answer the question: rent-seeking or transaction costs are more important for agricultural activities, and how should they be reduced to maintain better agricultural land use.

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