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Can large-scale farms lead smallholder agricultural digitalization? Evidence from intelligent machinery use in China

Author

Listed:
  • Zongyao Yang
  • Shuyu Wu
  • Yueqing Ji
  • Ling Tan

Abstract

Intelligent agricultural machinery (IAM) has spread rapidly among large-scale farms (LSFs) but slowly among smallholders. Whether LSFs promote smallholder digitalization as leaders or crowd it out as competitors remains unclear. Using 2023 survey data from rice farmers in China, this study examines the spillover effects of LSFs on smallholders’ IAM adoption. Results show that the presence of LSFs increases nearby smallholders’ adoption likelihood by 6%, mainly through demonstration, service sharing, and quality assurance. Spillovers are stronger among smallholders with higher risk appetite, lower farming capacity, and larger plots, but weaken as LSFs expand. Notably, significant effects arise only when LSFs exceed a critical density threshold (56% of village farmland). These findings highlight the conditional leadership of LSFs in advancing smallholder digitalization and provide policy guidance for inclusive digital agriculture.

Suggested Citation

  • Zongyao Yang & Shuyu Wu & Yueqing Ji & Ling Tan, 2026. "Can large-scale farms lead smallholder agricultural digitalization? Evidence from intelligent machinery use in China," Applied Economics, Taylor & Francis Journals, vol. 58(3), pages 397-412, January.
    • Handle: RePEc:taf:applec:v:58:y:2026:i:3:p:397-412
    DOI: 10.1080/00036846.2025.2590625
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