Impact of Farmer Participation in Production Chain Outsourcing Services on Agricultural Output Level and Output Risk: Evidence from the Guanzhong Plain, China

Abstract

Shifting from a land-scale operation to a service-scale operation of agricultural production chain outsourcing services (APOS) is crucial to achieving innovation in agricultural-scale operation techniques. Using propensity score matching (PSM) and data from 1027 farm households in Guanzhong Plain, Shaanxi Province, we empirically assessed the impact of APOS on agricultural output level and output risk. First, age, gender, health, education, training, number of outworkers, land tenure, land contiguity, and subsidy satisfaction had a substantial beneficial influence on the involvement of farm families in APOS. Second, involvement in APOS may greatly increase the amount of agricultural production and lower the risk associated with farm families’ agricultural output. Moreover, the participation in outsourcing services for agricultural machinery use and field management significantly increased agricultural output and decreased output risk, but the participation in agricultural machinery use outsourcing services increased yield and reduced risks more significantly.