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Household-owned farm machinery vs. outsourced machinery services: The impact of agricultural mechanization on the land leasing behavior of relatively large-scale farmers in China

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  • Qian, Long
  • Lu, Hua
  • Gao, Qiang
  • Lu, Hualiang

Abstract

In the context of the rapid rise of agricultural mechanization in China, this paper examines the impact of household-owned farm machinery and outsourced agricultural machinery services on the land leasing behavior of Chinese relatively large-scale farmers. Based on the CFPS2018 survey data, this study suggests that farm machinery is beneficial for expanding the scale of farms. With increases in household-owned machinery, farmers are more inclined to lease-in land, and they are less inclined to rent-out land. The more agricultural machinery services farmers purchase, the more they tend to transfer-in land and the probability of transfer-out land is lower. However, uneven village terrain can weaken the effects of the two kinds of agricultural mechanization on land leasing. Moreover, this study confirms that household-owned farm machinery and outsourced agricultural machinery services could positively regulate each other's influence on land leasing, indicating that there is a complementary relationship between the two types of agricultural machinery. Further mechanism analyses show that the channels by which household-owned farm machinery and outsourced agricultural machinery services affect land leasing are quite different. The self-purchased machinery of farmers mainly plays a role through labor complementarity effects, while outsourced agricultural machinery services mainly affect land leasing through labor substitution effects.

Suggested Citation

  • Qian, Long & Lu, Hua & Gao, Qiang & Lu, Hualiang, 2022. "Household-owned farm machinery vs. outsourced machinery services: The impact of agricultural mechanization on the land leasing behavior of relatively large-scale farmers in China," Land Use Policy, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:lauspo:v:115:y:2022:i:c:s0264837722000357
    DOI: 10.1016/j.landusepol.2022.106008
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