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

Long Qian, Hua Lu, Qiang Gao and Hualiang Lu

Land Use Policy, 2022, vol. 115, issue C

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.

Keywords: Household-owned farm machinery; Outsourced agricultural machinery services; Land leasing; Labor complementarity effect; Labor substitution effect (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (42)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:115:y:2022:i:c:s0264837722000357

DOI: 10.1016/j.landusepol.2022.106008

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