Can Agricultural Subsidies Reduce Cropland Abandonment in Rural China?

Pengjing Zhang and Tao Xiong ()
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Pengjing Zhang: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
Tao Xiong: College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China

Agriculture, 2025, vol. 15, issue 8, 1-21

Abstract: Cropland abandonment has significant implications for sustainable agricultural development. Whether agricultural subsidies can reduce cropland abandonment is correlated with China’s food security. Relying on the China Labor-force Dynamics Survey (CLDS) data and the two-way fixed effects model, this study investigates the implications of agricultural subsidies on cropland abandonment and its influence mechanism. The results demonstrate that agricultural subsidies effectively reduce cropland abandonment, which is robust after robustness and endogeneity tests. Mechanism analysis indicates that agricultural subsidies inhibit cropland abandonment by incentivizing farmers to increase agricultural production inputs and facilitate cropland transfer. Heterogeneous analysis reveals that agricultural subsidies yield more significant benefits in eastern and central regions and plain and hill areas, particularly among households with higher degrees of part-time employment. Moreover, the effect of agricultural subsidies on cropland abandonment is greater in households with higher levels of population aging. These findings complement existing research on the impact of agricultural subsidies on agricultural production and offer valuable insights for policymakers devising strategies to curb cropland abandonment and foster sustainable agricultural development.

Keywords: agricultural subsidies; cropland abandonment; agricultural production inputs; cropland transfer (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: 2025
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