Will farmland renting out boost rural households’ income? Evidence from China’s rural areas

Zhao Zhang and Jing Gao

Applied Economics Letters, 2025, vol. 32, issue 17, 2538-2543

Abstract: This paper estimates the effect of renting out farmland on rural households’ income through a difference-in-differences (DID) approach, using data from China Family Panel Studies (CFPS). Our findings support the income growth effect of farmland renting out, which is confirmed by a series of robustness tests. Additionally, the mechanism tests indicate that both the farmland rental income proportion in the total income and the rural household members’ probability of non-farm work significantly increase after farmers rent out their farmland. Our study helps to explore the market-based allocation of farmland and provides Chinese evidence and reference for the reform of rural land systems in emerging economies.

Date: 2025
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DOI: 10.1080/13504851.2024.2335370

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