IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v57y2026i1ne70085.html

Fast Machines, Big Losses: The Hidden Costs of Agricultural Machinery Socialization Services

Author

Listed:
  • Ning An
  • Zongli Zhang

Abstract

Agricultural machinery socialization services (AMSS) are the primary channel for mechanized grain harvesting in China. Nevertheless, mechanical harvest loss rates for the country's three staple grains exceed thresholds set by the Ministry of Agriculture and Rural Affairs (MARA), posing risks to national food security. This study examines the roots of opportunistic behavior among AMSS providers and its consequences for harvest losses. Using survey data from 649 rice farmers in Jiangsu, Sichuan, and Jilin provinces in China, we find that reliance on AMSS increases rice harvest losses, mainly because providers raise operating speeds—an expression of opportunism. Losses are higher when services are delivered by cross‐regional rather than local providers. Cross‐regional operators tend to work faster and find it difficult to build stable relationships with farmers; the one‐time deal of these interactions encourages opportunism. Seasonal time constraints further amplify these effects. When the harvest window is tight, dependence on AMSS significantly worsens losses. The results suggest that effective policy interventions must address the fundamental incentive misalignment in AMSS markets through standardized operating protocols, enhanced monitoring systems, and mechanisms that transform one‐time deal into repeated interactions.

Suggested Citation

  • Ning An & Zongli Zhang, 2026. "Fast Machines, Big Losses: The Hidden Costs of Agricultural Machinery Socialization Services," Agricultural Economics, International Association of Agricultural Economists, vol. 57(1), January.
    • Handle: RePEc:bla:agecon:v:57:y:2026:i:1:n:e70085
    DOI: 10.1111/agec.70085
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.70085
    Download Restriction: no
    File URL: https://libkey.io/10.1111/agec.70085?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xue Qu & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2023. "Rice harvest losses caused by agency slack in China: a mediation analysis," Applied Economics, Taylor & Francis Journals, vol. 55(10), pages 1129-1141, February.
    2. Dingqiang Sun & Michael Rickaille & Zhigang Xu, 2018. "Determinants and impacts of outsourcing pest and disease management," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(3), pages 443-461, August.
    3. Yi Luo & Dong Huang & Xue Qu & Laping Wu, 2022. "An Inverse Relationship between Farm Size and Rice Harvest Loss: Evidence from China," Land, MDPI, vol. 11(10), pages 1-14, October.
    4. Jin Yang & Zuhui Huang & Xiaobo Zhang & Thomas Reardon, 2013. "The Rapid Rise of Cross-Regional Agricultural Mechanization Services in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1245-1251.
    5. Dingqiang Sun & Michael Rickaille & Zhigang Xu, 2018. "Determinants and impacts of outsourcing pest and disease management," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(3), pages 443-461, August.
    6. Sheahan, Megan & Barrett, Christopher B., 2017. "Ten striking facts about agricultural input use in Sub-Saharan Africa," Food Policy, Elsevier, vol. 67(C), pages 12-25.
    7. Xiaobing Wang & Futoshi Yamauchi & Jikun Huang, 2016. "Rising wages, mechanization, and the substitution between capital and labor: evidence from small scale farm system in China," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 309-317, May.
    8. Wooldridge, Jeffrey M., 2007. "Inverse probability weighted estimation for general missing data problems," Journal of Econometrics, Elsevier, vol. 141(2), pages 1281-1301, December.
    9. Martins, Anamaria Gaudencia & Goldsmith, Peter & Moura, Altair, 2014. "Managerial factors affecting post-harvest loss: the case of Mato Grosso Brazil," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(4), pages 1-10.
    10. Xue Qu & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2022. "Do Farming Scale and Mechanization Affect Moral Hazard in Rice Harvest Outsourcing Service in China?," Agriculture, MDPI, vol. 12(8), pages 1-12, August.
    11. Arends-Kuenning, Mary & Garcias, Marcos & Kamei, Akito & Shikida, Pery Francisco Assis & Romani, Gisele Esser, 2022. "Factors associated with harvest and postharvest loss among soybean farmers in Western Paraná State, Brazil," Food Policy, Elsevier, vol. 112(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Takeshima, Hiroyuki & Hatzenbuehler, Patrick L. & Edeh, Hyacinth O., 2020. "Effects of agricultural mechanization on economies of scope in crop production in Nigeria," Agricultural Systems, Elsevier, vol. 177(C).
    2. Daum, Thomas & Villalba, Roberto & Anidi, Oluwakayode & Mayienga, Sharon Masakhwe & Gupta, Saurabh & Birner, Regina, 2021. "Uber for tractors? Opportunities and challenges of digital tools for tractor hire in India and Nigeria," World Development, Elsevier, vol. 144(C).
    3. Junying Lin & Songqing Jin & Hongdong Guo, 2023. "Do outsourcing services provided by agricultural cooperatives affect technical efficiency? Insights from tobacco farmers in China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 781-804, September.
    4. Idelphonse O. Saliou & Afio Zannou & Augustin K. N. Aoudji & Albert N. Honlonkou, 2020. "Drivers of Mechanization in Cotton Production in Benin, West Africa," Agriculture, MDPI, vol. 10(11), pages 1-13, November.
    5. Yu Xu & Liangjie Xin & Xiubin Li & Minghong Tan & Yahui Wang, 2019. "Exploring a Moderate Operation Scale in China’s Grain Production: A Perspective on the Costs of Machinery Services," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    6. Junguo Hua & Meng Tian & Yan Zhao & Kaiyuan Zhou & Fuchun Mei, 2024. "Study on the Mitigation Effect and Promotion Mechanism of Agricultural Digitalization on the Agricultural Land Resource Mismatch," Agriculture, MDPI, vol. 14(6), pages 1-17, June.
    7. Xiaoshi Zhou & Wanglin Ma & Gucheng Li, 2018. "Draft Animals, Farm Machines and Sustainable Agricultural Production: Insight from China," Sustainability, MDPI, vol. 10(9), pages 1-16, August.
    8. Xiaoheng Zhang & Guiquan Yan & Yucheng He & Hailong Yu, 2022. "Do Disease and Pest Control Outsourcing Services Reduce Arable Land Abandonment? Evidence from China," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    9. 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.
    10. Xue Qu & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2022. "Do Farming Scale and Mechanization Affect Moral Hazard in Rice Harvest Outsourcing Service in China?," Agriculture, MDPI, vol. 12(8), pages 1-12, August.
    11. Yuxin Cui, 2023. "Mechanization's impact on agricultural total factor productivity," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 446-457.
    12. Meng Qu & Kai Zhao & Renhui Zhang & Yuan Gao & Jing Wang, 2022. "Divergence between Willingness and Behavior of Farmers to Purchase Socialized Agricultural Services: From a Heterogeneity Perspective of Land Scale," Land, MDPI, vol. 11(8), pages 1-21, July.
    13. 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).
    14. Yukichi Mano & Kazushi Takahashi & Keijiro Otsuka, 2020. "Mechanization in land preparation and agricultural intensification: The case of rice farming in the Cote d'Ivoire," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 899-908, November.
    15. 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.
    16. Suhao Wei & Yangxiao Lu, 2022. "Why China’s AMS Market Is Difficult to Develop Sustainably: Evidence from the North China Plain," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    17. Chen, Minjie & Heerink, Nico & Zhu, Xueqin & Feng, Shuyi, 2021. "Do Small Farm Sizes Imply Large Resource Misallocation? Evidence from Wheat-Maize Double Cropping Farms in the North China Plain," 2021 Conference, August 17-31, 2021, Virtual 315141, International Association of Agricultural Economists.
    18. Chen, Minjie & Heerink, Nico & Zhu, Xueqin & Feng, Shuyi, 2022. "Do small and equally distributed farm sizes imply large resource misallocation? Evidence from wheat-maize double-cropping in the North China Plain," Food Policy, Elsevier, vol. 112(C).
    19. Jiaojiao Ding & Amin Mugera & Xia Zhao, 2026. "Outsourcing Fertilizer Mechanization Services to Different Types of Service Providers: Assessing the Impact on Fertilizer Application for Wheat Producers in China," Agribusiness, John Wiley & Sons, Ltd., vol. 42(2), pages 460-472, April.
    20. Siyu Yang & Wei Li, 2022. "The Impact of Socialized Agricultural Machinery Services on Land Productivity: Evidence from China," Agriculture, MDPI, vol. 12(12), pages 1-18, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:57:y:2026:i:1:n:e70085. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.