Influence of Natural Risks and Non-Agricultural Income on Agricultural Trusteeship Decisions in Northeast China

Abstract

As the main service mode and management mode of socialized service, agricultural production trusteeship services (APTS) are an important way to realize the tight link between farmers and modern agricultural development, which is highly important for ensuring national food security. By constructing a utility model of farmers, this paper deduces the decision-making mechanism of farmers’ APTS from the dual mechanism of natural risk and non-agricultural employment income (NAEI) and uses the survey data of 956 farmers in the three northeastern provinces to verify the empirical results by using multivariate logit (Mlogit) and propensity score matching (PSM) methods. The research shows that natural risk hinders farmers’ choice of the APTS; NAEI has a positive impact on APST, and an increase in NAEI weakens the negative effect of natural risk on the choice of the APTS, and has an enhanced moderating effect. In addition, the scale heterogeneity analysis revealed that the impacts of natural risk and NAEI on farmers of different scales are significantly different. The NAEI adjustment effect has the greatest impact on small-scale farmers, followed by medium-scale farmers. In view of this, the government should stabilize the nonagricultural employment market and improve the nonagricultural employment opportunities of farmers. APTS organizations should transfer natural risks and improve the agricultural insurance system. According to the differences of different scales of farmers, different promotion policies are formulated, and the expansion of management and deepening services is proposed to further promote the development of APTS and consolidate the foundation of food security in China.