The grain-green tension in China's land transfer

Land transfer is an essential strategy for the sustainable utilization of arable land, representing a significant advancement in securing national food security. This study, uses data from 1382 households in the 2015–2019 China Rural Household Panel Survey (CRHPS), applies a two-way fixed effects model to assess the impact of land transfer on grain production and the agricultural environment, alongside the mechanisms driving these effects. The findings reveal a discrepancy between economic and environmental efficiencies resulting from land transfers. There is a tension between enhancing grain production and reducing the use of fertilizers and pesticides. Further analysis shows that land transfers contribute positively to the reduction of chemical inputs; Specifically, a 1 % increase in the land transfer rate corresponds to a reduction of 7.87 yuan per unit of arable land in total input costs for fertilizers and pesticides. Conversely, land transfer adversely affects grain production, with a 1 % increase in the land transfer rate leading to an 11.23 yuan decrease in the grain output value per unit of arable land. Therefore, it is essential to accelerate the transformation of agricultural production techniques. A shift from conventional farming practices to more diversified farming systems is necessary to promote sustainable agricultural production.