Effect of Farmers’ Perceptions of Sustainable Development Value on Their Willingness for Agricultural Land Secured Financing

Abstract

Farmers’ perceptions of land value determine how land is used, which, in turn, can affect the ecological protection and sustainable development of land resources. This study constructed an index system of farmers’ perceptions of the sustainable development value of agricultural land in four aspects: economic value, security value, ecological value, and emotional value. Using data from 1652 farm households in Shaanxi Province, China, we empirically analyzed the influence of farmers’ perceptions of sustainable development value on their intention to obtain financing secured by agricultural land. Farmers’ perceptions of sustainable development value were found to have a significant negative effect on their willingness for agricultural land secured financing, and social capital played a negative moderating role in the relationship between the two. Further, we found differences between ordinary farmers and new management entities in their value perceptions of agricultural land; thus, there was heterogeneity in the effect on intention to obtain financing secured by agricultural land. Based on the findings, we suggested ways to promote the market development of agricultural land financing, including guiding farmers to form sustainable perceptions of agricultural land value, and innovating mortgages secured by agricultural land with new management entities as the main demanders.