The Impact of Agricultural Factor Inputs, Cooperative-Driven on Grain Production Costs

Han Zhang and Dongli Wu ()
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Han Zhang: College of Economics and Management, Shenyang Agricultural University, Shenyang 110866, China
Dongli Wu: College of Economics and Management, Shenyang Agricultural University, Shenyang 110866, China

Agriculture, 2023, vol. 13, issue 10, 1-17

Abstract: The problem of high grain production costs, which is not conducive to sustainable agricultural development and food security, is highlighted in the context of China’s “large country and small household farmers”. Reducing the grain production costs through factor allocation and organizational drive has become particularly important. Based on 768-grain peasant households in China, this paper uses OLS regression and robust regression to examine the effects of agricultural factor inputs and cooperatives on grain production costs. It analyzes the synergistic and substitution effects between farmers’ factor inputs and cooperatives in grain production. It was found that: (1) in farmers’ grain production, reductions in the grain production costs can be realized by expanding the area under cultivation, improving the use of agricultural machinery, and increasing technological inputs; (2) a reduction in the grain production costs can also be realized through cooperatives driving farmers into grain production; (3) cooperatives can provide farmers with various types of agricultural production services in grain production and cooperative-driven substitution effects between the agricultural factor inputs of farm households. The findings of this paper contribute to the enrichment of research in the field of agricultural production and are important for enhancing agricultural sustainability and reducing grain production costs.

Keywords: farm households; agricultural production factors; cooperatives; food production; production costs; synergistic effects; substitution effects (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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