The Impact of High-Standard Farmland Construction on Machinery Input Costs: Evidence from Rural China

Yongyang Wu, Yuxin Duan, Cong Pan, Wenyan Xu, Zhichong Xuan and Qiran Zhao

No 404386, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: This study examines the impact of China's High-Standard Farmland Construction (HSFC) program on machinery input costs in rural agriculture, a crucial issue for mechanization and productivity. Using household-level survey data from 2019 to 2022, we employ a two-way fixed effects model to assess the policy’s effectiveness. Our findings indicate that HSFC significantly reduces machinery input costs per unit of land by improving infrastructure, particularly through land consolidation and field road construction. The reduction in costs is more pronounced in major grain-producing regions and areas with stronger fiscal capacities. The study contributes to the literature by identifying mechanisms that enhance agricultural efficiency through infrastructure investment, providing new empirical evidence for the role of public investment in improving agricultural mechanization. Furthermore, the results suggest that HSFC’s cost-reducing effects are contingent on regional conditions, highlighting the importance of tailored policies in promoting mechanization. This research offers insights into policy design that could improve the long-term sustainability of agricultural productivity.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 30
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404386

DOI: 10.22004/ag.econ.404386

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