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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MDPI AG
2024-11-01
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| 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 |
| id | doaj-art-960e8e745da44dfda6a96668e39a3516 |
| institution | Kabale University |
| issn | 2073-445X |
| language | English |
| publishDate | 2024-11-01 |
| 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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