How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural Change

This study investigated the impact of China’s agricultural subsidy policy on farmers’ commercial production, indicated by sales market participation. A nationally representative survey data, panel Tobit model, IV Tobit model, and the Correlated Random Effects (CRE) approach were used. The findings r...

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Main Authors: Jian Zhang, Awais Jabbar, Xin Li
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Land
Subjects:
Online Access:https://www.mdpi.com/2073-445X/13/12/2058
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author Jian Zhang
Awais Jabbar
Xin Li
author_facet Jian Zhang
Awais Jabbar
Xin Li
author_sort Jian Zhang
collection DOAJ
description This study investigated the impact of China’s agricultural subsidy policy on farmers’ commercial production, indicated by sales market participation. A nationally representative survey data, panel Tobit model, IV Tobit model, and the Correlated Random Effects (CRE) approach were used. The findings reveal that farmers receiving agricultural subsidies have improved crop sales’ share of total output value. Mechanism analysis reveals that agricultural subsidies have driven up farmland scale and increased agricultural labor supply in production, incentivizing the motive for profit maximization among farmers. Meanwhile, agricultural subsidies also encourage farmers to cultivate more grain crops. Policymakers should continue deepening the reform of agricultural subsidies and promoting farmer specialization and commercial production. Moderate-scale operation of farmland should be one of the targets of agricultural subsidies.
format Article
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publisher MDPI AG
record_format Article
series Land
spelling doaj-art-960e8e745da44dfda6a96668e39a35162024-12-27T14:35:01ZengMDPI AGLand2073-445X2024-11-011312205810.3390/land13122058How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural ChangeJian Zhang0Awais Jabbar1Xin Li2Research Center for Land Use and Ecological Security Governance in Mining Areas, China University of Mining and Technology, Xuzhou 221116, ChinaCollege of Economics and Management, Three Gorges University, Yichang 443002, ChinaResearch Center for Land Use and Ecological Security Governance in Mining Areas, China University of Mining and Technology, Xuzhou 221116, ChinaThis study investigated the impact of China’s agricultural subsidy policy on farmers’ commercial production, indicated by sales market participation. A nationally representative survey data, panel Tobit model, IV Tobit model, and the Correlated Random Effects (CRE) approach were used. The findings reveal that farmers receiving agricultural subsidies have improved crop sales’ share of total output value. Mechanism analysis reveals that agricultural subsidies have driven up farmland scale and increased agricultural labor supply in production, incentivizing the motive for profit maximization among farmers. Meanwhile, agricultural subsidies also encourage farmers to cultivate more grain crops. Policymakers should continue deepening the reform of agricultural subsidies and promoting farmer specialization and commercial production. Moderate-scale operation of farmland should be one of the targets of agricultural subsidies.https://www.mdpi.com/2073-445X/13/12/2058agricultural subsidyland use changefarmland scalecommercial productionChina
spellingShingle Jian Zhang
Awais Jabbar
Xin Li
How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural Change
Land
agricultural subsidy
land use change
farmland scale
commercial production
China
title How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural Change
title_full How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural Change
title_fullStr How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural Change
title_full_unstemmed How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural Change
title_short How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural Change
title_sort how does china s agricultural subsidy policy drive more commercially productive small farmers the role of farmland scale labor supply and cropping structural change
topic agricultural subsidy
land use change
farmland scale
commercial production
China
url https://www.mdpi.com/2073-445X/13/12/2058
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