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Influences of the Transaction Intention of Farmland Transfer under Information Asymmetry: An Empirical Study of 1100 Questionnaires from China

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  • Yingchao Li

    (College of Resources and Environment, Henan Agricultural University, Zhengzhou, Henan 450002, China)

  • Ruyu Du

    (College of Resources and Environment, Henan Agricultural University, Zhengzhou, Henan 450002, China)

  • Linli Li

    (College of Resources and Environment, Henan Agricultural University, Zhengzhou, Henan 450002, China)

  • Guanghui Jiang

    (School of Natural Resources, Faculty of Geographical Science, Beijing Normal University, Beijing 100875, China)

  • Zhiyuan Fan

    (College of Resources and Environment, Henan Agricultural University, Zhengzhou, Henan 450002, China)

Abstract

The original intention of the tripartite rural land entitlement system was to activate farmland management rights and improve the efficiency of land element allocation. However, information asymmetry is prevalent in a market with imperfect competition. We analyzed the key factors affecting farmland transfer transactions with the structural equation model using survey data from farmers in five major grain-producing counties in Henan province, China. The purpose of our study was to investigate how these factors contribute to the avoidance of a “lemon market” emerging in farmland transfer and can promote the market regulation of farmland transfer operations. This study was conducted under the framework of asymmetric theory analysis with the purpose of discussing the fundamental forces driving farmland transfer transactions. The results show that (1) the economic characteristics of farmers play an important role in the formation of farmland transfer transactions, and their impacts on the willingness to transfer farmland in and out were 0.69 and 0.97, respectively; and (2) among the observable variables, the satisfaction degree of agricultural technology training and the proportion of non-agricultural income had a strong ability to explain the choice of farmland transfer behavior, and the factors that strongly impacted farmland transfer out behavior were physical condition and farmland quality. Thus, we recommend establishing a detailed land transfer pricing system based on the background quality of farmland and increasing the agricultural science and technology education, focusing on dredging information transmission channels to fulfill the new requirements of the three-right separation system on the government’s supervision of farmland transfer to promote effective links between small-scale peasant economies and modern agriculture.

Suggested Citation

  • Yingchao Li & Ruyu Du & Linli Li & Guanghui Jiang & Zhiyuan Fan, 2020. "Influences of the Transaction Intention of Farmland Transfer under Information Asymmetry: An Empirical Study of 1100 Questionnaires from China," Sustainability, MDPI, vol. 12(9), pages 1-15, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:9:p:3739-:d:354155
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    References listed on IDEAS

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    2. Songqing Jin & T. S. Jayne, 2013. "Land Rental Markets in Kenya: Implications for Efficiency, Equity, Household Income, and Poverty," Land Economics, University of Wisconsin Press, vol. 89(2), pages 246-271.
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    2. Sihui Zhang & Yong Sun & Yalin Wang & Xiaoxi Lin, 2024. "Geographical indication, agricultural development and the alleviation of rural relative poverty," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 5764-5780, October.
    3. Yingchao Li & Zhiyuan Fan & Guanghui Jiang & Zhuo Quan, 2021. "Addressing the Differences in Farmers’ Willingness and Behavior Regarding Developing Green Agriculture—A Case Study in Xichuan County, China," Land, MDPI, vol. 10(3), pages 1-12, March.
    4. Xusen Zhu & Chaofu Wei & Fengtai Zhang & Junyi Zhang & Yuedong Xiao & Xingyu Yang, 2022. "Influencing Factors of Farmers’ Land Circulation in Mountainous Chongqing in China Based on A Multi-Class Logistic Model," Sustainability, MDPI, vol. 14(12), pages 1-16, June.
    5. Guoping He & Taofen Xiao, 2023. "A study on the mode choice of large-scale households’ farmland transfer-in in rural China: Based on the economic analysis paradigm of transaction costs," PLOS ONE, Public Library of Science, vol. 18(10), pages 1-23, October.
    6. Hengyuan Zeng & Jingru Chen & Qiang Gao, 2024. "The Impact of Digital Technology Use on Farmers’ Land Transfer-In: Empirical Evidence from Jiangsu, China," Agriculture, MDPI, vol. 14(1), pages 1-16, January.

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