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Do Chinese farmers benefit from farmland leasing choices? Evidence from a nationwide survey

Author

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  • Baoling Zou
  • Ashok K. Mishra
  • Biliang Luo

Abstract

Using China Family Panel Studies (CFPS), this study investigates factors associated with the choice of farmland leasing strategies and the impact of leasing options on farm performance. Particular attention is given to off‐farm employment and farm subsidies. Additionally, the study applies a selectivity‐based approach to assess the relationship between farmland leasing choices and farm businesses’ performance. Off‐farm employment, older and educated operators, large farms and old‐age pension plans increase the likelihood of leasing out farmland. Part‐time off‐farm employment, grain subsidies and mechanised farms increase the likelihood of leasing in farmland. Finally, the selectivity correction terms in the value of crop production are significantly negative in the choices of farmland leasing, indicating the presence of sample selection effects. Accounting for selectivity is essential to ensure unbiased and consistent estimates.

Suggested Citation

  • Baoling Zou & Ashok K. Mishra & Biliang Luo, 2020. "Do Chinese farmers benefit from farmland leasing choices? Evidence from a nationwide survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), pages 322-346, April.
    • Handle: RePEc:bla:ajarec:v:64:y:2020:i:2:p:322-346
    DOI: 10.1111/1467-8489.12354
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    Cited by:

    1. Zou, Baoling & Mishra, Ashok K., 2022. "Engaging Information Technology in Farmland Rental Market: An Empirical Study from Rural China," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322265, Agricultural and Applied Economics Association.
    2. Zheng, Hongyun & Ma, Wanglin & Zhou, Xiaoshi, 2021. "Effects of Renting-in Cropland on Machinery Use Intensity and Land Productivity: Evidence from Rural China," 2021 Conference, August 17-31, 2021, Virtual 315084, International Association of Agricultural Economists.
    3. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2021. "The Case for Long-Term Land Leasing: A Review of the Empirical Literature," Land, MDPI, vol. 10(3), pages 1-21, March.

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