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Grain subsidy, off-farm labor supply and farmland leasing: Evidence from China

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  • Zou, Baoling
  • Mishra, Ashok K.
  • Luo, Biliang

Abstract

This study investigates the impact of direct grain subsidy and off-farm labor supply on farmland leasing options in China, using multinomial logit and farm household-level data. Results show that the grain subsidy has a significant and positive effect on both leasing out and leasing in farmland in rural China. Rural households with an increased share of full-time off-farm workers are more likely to lease out farmland and less likely to lease it in. Older operators and households with less educational attainment are less likely to lease in farmland. Large farms are likely to both lease out and lease in farmland. Finally, the Land Shareholding Cooperative System (LSCS) plays an important role in China's farmland leasing market.

Suggested Citation

  • Zou, Baoling & Mishra, Ashok K. & Luo, Biliang, 2020. "Grain subsidy, off-farm labor supply and farmland leasing: Evidence from China," China Economic Review, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:chieco:v:62:y:2020:i:c:s1043951x1930046x
    DOI: 10.1016/j.chieco.2019.04.001
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    Cited by:

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    2. Na Xu & Liqin Zhang & Xiyuan Leng, 2022. "Sustainable Food Production from a Labor Supply Perspective: Policies and Implications," Sustainability, MDPI, vol. 14(23), pages 1-19, November.
    3. Chengyou Li & Zhouhao Sha & Xiaoqin Sun & Yong Jiao, 2022. "The Effectiveness Assessment of Agricultural Subsidy Policies on Food Security: Evidence from China’s Poverty-Stricken Villages," IJERPH, MDPI, vol. 19(21), pages 1-17, October.
    4. 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.
    5. Lianma Zhang & Dazhuan Ge & Pan Sun & Dongqi Sun, 2021. "The Transition Mechanism and Revitalization Path of Rural Industrial Land from a Spatial Governance Perspective: The Case of Shunde District, China," Land, MDPI, vol. 10(7), pages 1-19, July.
    6. Fu, Hong & Peng, Yanling & Zheng, Linyi & Liu, Qi & Zhou, Li & Zhang, Yuehua & Kong, Rong & Turvey, Calum G., 2022. "Heterogeneous choice in WTP and WTA for renting land use rights in rural china: Choice experiments from the field," Land Use Policy, Elsevier, vol. 119(C).
    7. Wang, Qian & Li, Fan & Heerink, Nico & Yu, Jin & Fleskens, Luuk & Ritsema, Coen J., 2023. "Land Rental Markets, Specialization and Rural Household Income: Evidence from the North China Plain," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(3), September.
    8. Yu, Zhenning & She, Shuoqi & Xia, Chuyu & Luo, Jiaojiao, 2023. "How to solve the dilemma of China’s land fallow policy: Application of voluntary bidding mode in the Yangtze River Delta of China," Land Use Policy, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    Farmland leasing; Grain subsidy; Off-farm labor supply; China; Land shareholding cooperative system (LSCS);
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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