AbstractThe establishment of secured and easily transferable land use rights is a key component of rural development and poverty reduction pathways in many underdeveloped countries. In this study, we use balanced panel data collected from 407 farm households between 2009/10 and 2014/15 production seasons and apply difference‐in‐difference approach to examine impact of second‐stage land certification on tenure security, participation and extent of participation in the land rental market. Our finding shows that second‐stage land certification has helped to boost tenure security of smallholder farmers. However, the differences in difference results show that the second stage land certification has not yet started to influence farm households’ participation in the land rental market. This could probably be due to the fact that the program is at its early stage of implementation and may warrant further scrutiny with additional time.