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Do agricultural services contribute to cost saving? Evidence from Chinese rice farmers

Author

Listed:
  • Liqun Tang
  • Qiang Liu
  • Wanjiang Yang
  • Jianying Wang

Abstract

Purpose - The purpose of this paper is to clarify agricultural services into five categories, including agricultural materials supply service, financial service, technical service, machinery service and processing and sales service, and to examine the effect of agricultural services on cost saving of rice production in China. Design/methodology/approach - Based on a three-year panel data set covering 3,421 rice farmers in 12 Chinese provinces collected from the state rice industry experiment stations’ fixed watch points of China Agriculture Research System, a stochastic frontier model which takes the price vectors of input variables into cost function is developed by stochastic frontier analysis method in the study. Findings - There is a deviation between the actual cost and the minimum cost on rice production in China due to the loss of cost efficiency, whose score is 0.7983 at the mean. Agricultural services can help improve cost efficiency, thus contributing to cost saving. Specifically, the effect of technical service on cost saving is the highest, followed by processing and sales service, machinery service, financial service and agricultural materials supply service. Originality/value - The results of this paper are of great significance to the effectiveness and efficiency of the targeted agricultural services and indicate implications for policy improvement under the context of clear upward trend of agricultural production costs.

Suggested Citation

  • Liqun Tang & Qiang Liu & Wanjiang Yang & Jianying Wang, 2018. "Do agricultural services contribute to cost saving? Evidence from Chinese rice farmers," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(2), pages 323-337, May.
    • Handle: RePEc:eme:caerpp:caer-06-2016-0082
    DOI: 10.1108/CAER-06-2016-0082
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    Citations

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    Cited by:

    1. Wang, Anbang & He, Ke & Zhang, Junbiao & Zeng, Yangmei, 2021. "Green Production Technologies and Technical Efficiency of Rice Farmers in China: A Case Study of Straw-Derived Biochar," 2021 Conference, August 17-31, 2021, Virtual 315026, International Association of Agricultural Economists.
    2. Lipeng Li & Apurbo Sarkar & Xi Zhou & Xiuling Ding & Hua Li, 2022. "Influence and Action Mechanisms of Governmental Relations Embeddedness for Fostering Green Production Demonstration Household: Evidence from Shaanxi, Sichuan, and Anhui Province, China," IJERPH, MDPI, vol. 19(19), pages 1-25, September.
    3. Xiaoli Zhu & Chenglong Li & Hong Zhou, 2022. "Cost Changes and Technical Efficiency of Grain Production in China against a Background of Rising Factor Prices," Sustainability, MDPI, vol. 14(19), pages 1-16, October.
    4. Xing Ji & Jia Chen & Hongxiao Zhang, 2023. "Agricultural Specialization Threatens Sustainable Mental Health: Implications for Chinese Farmers’ Subjective Well-Being," Sustainability, MDPI, vol. 15(20), pages 1-22, October.
    5. Xuelan Li & Rui Guan, 2023. "How Does Agricultural Mechanization Service Affect Agricultural Green Transformation in China?," IJERPH, MDPI, vol. 20(2), pages 1-23, January.
    6. Liu, Yan & Heerink, Nico & Li, Fan & Shi, Xiaoping, 2022. "Do agricultural machinery services promote village farmland rental markets? Theory and evidence from a case study in the North China plain," Land Use Policy, Elsevier, vol. 122(C).
    7. Xi Yu & Xiyang Yin & Yuying Liu & Dongmei Li, 2021. "Do Agricultural Machinery Services Facilitate Land Transfer? Evidence from Rice Farmers in Sichuan Province, China," Land, MDPI, vol. 10(5), pages 1-14, April.
    8. Zhe Chen & Apurbo Sarkar & Md. Shakhawat Hossain & Xiaojing Li & Xianli Xia, 2021. "Household Labour Migration and Farmers’ Access to Productive Agricultural Services: A Case Study from Chinese Provinces," Agriculture, MDPI, vol. 11(10), pages 1-20, October.

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