Do Chinese farmers benefit from farmland leasing choices? Evidence from a nationwide survey

Abstract

Using China Family Panel Studies (CFPS), this study investigates factors associated with the choice of farmland leasing strategies and the impact of leasing options on farm performance. Particular attention is given to off-farm employment and farm subsidies. Additionally, the study applies a selectivity-based approach to assess the relationship between farmland leasing choices and farm businesses’ performance. Off-farm employment, older and educated operators, large farms and old-age pension plans increase the likelihood of leasing out farmland. Part-time off-farm employment, grain subsidies and mechanised farms increase the likelihood of leasing in farmland. Finally, the selectivity correction terms in the value of crop production are significantly negative in the choices of farmland leasing, indicating the presence of sample selection effects. Accounting for selectivity is essential to ensure unbiased and consistent estimates.