The Impact of Farm Structure on Agricultural Growth in China

Abstract

Farm structure has changed significantly since the land transfer policy was introduced in China. The quantity of and land area utilized by scale farmers and new agricultural entities are increasing, while the numbers of smallholders are decreasing. To analyze the impact of farm structure on agricultural growth in China, this study used provincial-level panel data from 2010 to 2021 and a fixed-effects model for empirical testing. The results show that (1) the structural change among farmers has a positive effect on agricultural growth, accounting for 16% of the contribution; (2) compared with scale farmers, new agricultural entities (NAEs) play a stronger role in improving agricultural growth, which is approximately five times higher than that of the former; and (3) unlike scale farmers, who only promote agricultural growth in central and major grain-producing areas, new agricultural entities have a positive effect on the entire area. Therefore, this study emphasizes the role of human capital in agricultural growth, especially in terms of promoting new agricultural entities, supporting land transfer, and optimizing farm structure.

Keywords

• agricultural growth
• farm structure
• land transfer
• new agricultural entities