The bifurcation of Zambia's agricultural land markets prevents smallholder farmers from participating in modern food marketing channels. High transaction costs in terms of time and financial resources make conversion of customary land into commercial land title prohibitively expensive for smallholder farmers. The simulated conversion of land title, without changing ownership, instigates a reallocation of capital and labor resources in the modeled economy that benefits smallholders in their roles as producers and household owners of factors of production. With the increase in commercial land area, labor becomes scarce and farm production becomes more capital intensive, thus increasing labor productivity and smallholder household income. This analysis highlights the importance of integrating land markets and giving smallholders an effective increase in the range of their resource allocation decisions.