The Impact of Rural Land Right on Farmers’ Income in Underdeveloped Areas: Evidence from Micro-Survey Data in Yunnan Province, China

Abstract

The rural land right has paved the way for the deepening of China’s agricultural land system, which is critical to the successful implementation of the rural revitalization plan in the new era. Based on the micro-survey data of farmers in Yunnan Province, we use an OLS model to empirically test the impact of rural land rights on farmers’ income in underdeveloped areas, and we use a stepwise regression method to test the mechanism role of land transfer willingness and behavior in the rural land right on farmers’ income. Benchmark regression results show that the implementation of rural land rights policy significantly increased the total income of farmers, which mainly comes from farm income. Although the rural land right policy has no significant impact on farmers’ non-farm income, the sign of right coefficient is positive. Mechanism analysis shows that the rural land right can increase the income of farmers by encouraging them to transfer to land. It shows that the property right of land is clear, which makes it easier for land to transfer and trade, and farmers can achieve a certain degree of scale operation, thereby increasing income. Finally, it is suggested that future fiscal funding in impoverished regions be directed toward land transfer links and that accompanying rules and regulations adequately protect farmers’ land contract management rights.