The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China
Abstract
:1. Introduction
2. Theoretical Analysis and Research Hypotheses
3. Materials and Methods
3.1. Study Area
3.2. Data Sources and Descriptive Statistics
- (1)
- Rural households who transferred-in their farmland had the highest annual average agricultural income (94,180¥) followed by rural households who did not transfer their farmland (46,927¥) and rural households who transferred-out their farmland (0¥, since they did not conduct any agricultural production). Moreover, pure-agricultural households had the highest income (63,971¥), followed by I part-time (34,465¥) and II part-time households (19,271¥).
- (2)
- Rural households who transferred-out their farmland had the highest annual average outworking income (26,286¥), followed by households who did not transfer their farmland (11,273¥) and households who transferred-in their farmland (8455¥). Among the different types of rural households who did not transfer their farmland, II part-time households had the highest outworking income (33,403¥), followed by I part-time (13,564¥) and pure-agricultural households (1164¥). Moreover, the outworking income of rural households who transferred-out their farmland is 7117¥ lower than II part-time households’ income; this is the primary reason why the total income of rural households who transferred-out their farmland is lower than rural households who did not transfer it.
- (3)
- Rural households who transferred-in their farmland had the highest subsidy income (3991¥). The difference in the annual average subsidy between rural households who transferred-out their farmland (2347¥) and those who did not transfer it (2212¥) was negligible (135¥). In addition, pure-agricultural households had the highest annual average subsidy (2653¥) among different rural households who did not transfer their farmland, followed by II part-time (2101¥) and I part-time households (1256¥).
- (4)
- Only the rural households transferring-out farmland had a rental-land income (10,177¥).
3.3. Propensity Score Matching Model
- (1)
- Covariates selection: Relevant variables likely affecting the households’ decision-making process of farmland transfer were included to ensure the validity of the conditional independence assumption). Related factors were selected as covariates, namely rural households who contracted farmland areas (CL), household laborers (LA), agricultural productive fixed assets (APFA), non-agricultural productive fixed assets (NAPFA), and the education level of the rural householder (ELHH).
- (2)
- (3)
- PSM model implementation: Households who transferred-in or transferred-out their farmland were matched to those who did not participate in farmland transfer, subsequently constructing matching groups. To ensure the robustness of the matching results, we chose two kinds of matching algorithms, namely, the radius matching method and kernel matching method.
- (4)
- Matching quality assessment: First, because we did not condition on all covariates but the estimated propensity score, we checked whether the matching procedure could balance the distribution of the relevant variables in both the control and treatment groups [51]. Second, the common support condition, as conventionally measured, is a major source of evaluation bias [48,55]. There are two methods of estimating balancing property: the first method is to compare the situation before and after matching. If there is no systematic difference after conditioning on the propensity score, and a likelihood ratio test on the joint significance of all regressors can be performed in the Logit model and should be rejected before but after matching, meanwhile, the Pseudo-R2 may lower, which indicates matching on the score is successful; the other method consists of requiring that the standardized deviation of samples after matching cannot be greater than 20; otherwise it would imply the failure of the matching process [56].
- (5)
- Calculation of the average treatment effect on the treated (ATT) [57]: After having identified the matching samples using the radius and kernel matching methods, the ATT of rural households with transferred farmland can be calculated to determine the impacts of farmland transfer on their income; thus, according to the matched samples, the counterfactual result is obtained for each rural household with transferred farmland under the assumption of not transferring it. This result is then compared with the factual result calculated by the actual observable income.
4. Results
4.1. Analysis of Covariates Affecting the Households’ Decision-Making for Farmland Transfer
4.2. Matching Effect Estimation
4.3. Analysis of the Impacts of Farmland Transfer on the Income Structure of Different Rural Households
4.3.1. Results of Farmland Transfer by Differentiated Rural Households Based on the ATTs
4.3.2. Analysis of Impacts of Farmland Transfer of Pure-Agricultural Households on the Income Structure
- (1)
- Impacts of farmland transfer on the income structure of all rural households
- (2)
- Impacts of farmland transfer on the income structure of pure-agricultural households
- (3)
- Impacts of farmland transfer on the income structure of I part-time rural households
- (4)
- Impacts of farmland transfer on the income structures of II part-time households
5. Discussion
- (1)
- The total income significantly increased after rural households transferring-in farmland, consistently with the results of the most recent studies [10,26,28,60]. The expansion of farmland scale and the significant increase in agricultural incomes are the primary reasons. However, the increased ratio in the agricultural income of different rural households showed some differences. China is a mountainous country, with 70% of its land area being hilly. However, unlike many other districts, Heilongjiang province is a typical plain area, its farmland area is vast and the connectivity among arable land plots is high, and the level of modern mechanized agriculture is also relatively high, an appropriate management scale should be larger than that in other regions in China [61]. Moreover, a large amount of empirical experience proves that an appropriate management scale could effectively promote grain production [62,63]. Because of this, regardless of the type of households in the study area, they can increase their agricultural income after transferring-in that proved in our study. Therefore, regardless of the type of rural household in the study area, transferring-in farmland will contribute to achieving an appropriate-scale operation and forming a scale economy, saving production cost, and improving agricultural productivity, which could greatly increase the agricultural income, particularly II part-time. Because there are still stable farmers in I part-time households engaged in agricultural production, and they still can basically maintain their agricultural operations even if they transfer in arable land due to limited availability of arable land area and, where there are large family sizes, the actual scale of production may be smaller than the scale of management appropriate to the situation, especially in Heilongjiang province [61,64,65], while II part-time needs to transfer more labor working in the non-agricultural sector to be more engaged in agricultural production when they transferring-in farmland; thus, the outworking labor in II part-time households is the most affected by farmland transfer-in, as well as the one which fell the most, followed by I part-time households, and pure-agricultural households. Therefore, the increase in the total income is, from high to low: I part-time households, pure-agricultural households, and II part-time households, and it highlights that pure-agricultural and I part-time households transferring-in farmland are more suitable than II part-time households, which further could contribute to achieving the appropriate-scale management of Heilongjiang province.
- (2)
- Regardless of different rural households, the total income decreased after they transferring-out farmland, and the drastic decrease in the agricultural income was greater than the increase in the outworking income. The decreased ratio in the total income is, from high to low: II part-time households, pure-agricultural households, and I part-time households, the important reason is the decrease in outworking income of II part-time households while it increased in other rural households, although the agricultural income of II part-time households had the smallest reduction. As analyzed in Section 4.3.2, the key is to handle the issue of support for the elderly who have quit farming, so that II part-time households can better perform their non-agricultural work. Meanwhile, it further indicates that the urbanization peace and economic level of the study area may not be consistent with the speed of the migration of rural laborers because even the increase in non-agricultural income cannot offset the decrease in agricultural income. Related studies showed that the Heilongjiang province has the highest rate of agricultural surplus-labor among the three provinces of north-eastern China. There were 4.75 million laborer surpluses by the end of 2012, which is 60.3% of the total agricultural laborers in Heilongjiang province [66]. Therefore, promoting the non-employment of surplus-labor may greatly contribute to the increase of rural households’ total and outworking income when they transferring-out farmland. However, the promotion of farmland transfer should be a gradual process. In fact, “pure-agricultural households → I part-time households → II part-time households” reflects the process of the rural households gradually moving towards non-agriculturalization, and the strengthening of this process is inevitable in the future [67], which also indicates there are different stages of farmland transfer correspondingly, and farmland transfer needs to be further promoted. Studies show that there is a mutual feedback mechanism for land use transition and the formulation of land management policies and institutions [63], it is, therefore, important to form and adjust related policies is based on the situation of farmland transfer and non-agriculture of households in different periods, preventing farmers’ life or ecological environment problems caused by excessively promoting farmland transfer.
6. Conclusions and Policy Implications
- (1)
- Promoting farmland transfer-in to pure-agricultural and I part-time households and transfer-out to II part-time households. Despite all types of rural households after farmland transfer-out will experience a decrease in households’ total income, some rural households must be prompted to transfer out of their farmland to consolidate small plots for large-scale farming, to form scale-management, to improve the overall income of farmland transfer, and to eventually boost economic growth in the entire rural area. Because the increase in the total income of II part-time households with farmland transfer-in was the smallest, while the outworking not increasing but decreasing is the main reason for the decrease in total income after II part-time households transferring-out farmland. Therefore, it is vital and reasonable to prompt II part-time households to transfer their farmland out, as well as to prompt pure-agricultural and I part-time households to transfer their farmland in, and at the meantime to develop mutual assistance for the aged in rural areas for solving the problem of taking care of the elderly who quit agricultural production and promoting II part-time labor to be better engaged in non-agricultural work.
- (2)
- Improving the farmland transfer market and promoting non-agricultural employment of surplus-labor need to be synchronized. No matter China or other countries, the great farmland transfer/rental market is an important condition for promoting transferring farmland and improve rural households’ income [2,3,10], and a platform providing the farmland transfer information, price assessment and negotiation guidance should be set up to reduce the cost of farmland transfer and ensure farmland transfer-out or transfer-in smoothly and fairly. When farmland can be transferred smoothly, the surplus-labor will inevitably increase. Studies show that nonagricultural employment effectively promotes the development of the farmland transfer market [35], and in turn, the development of the farmland transfer market could promote nonagricultural employment of rural labor [72]. Only combining the transformation from agriculture to non-agriculture of rural labor with promoting farmland transfer market can lower farmland fragmentation, improve agricultural productivity, and achieve agricultural modernization. The one key to promoting non-agricultural employment of rural labor is the improvement of the capacity of attracting labor in rural areas. Because rural elites are crucial actors in the transformational development of relatively successful villages [73]. Firstly, the government could provide financial supports and policy services to encourage the establishment of the agricultural products processing industry. Secondly, the village collectives could implement and assist in the establishment of agricultural production services or products processing industries. Especially after this COVID-19, it is well-known that if villages and towns can provide enough non-agricultural employment opportunities for rural surplus-labor, and a part of outflowing rural labor could be engaged in non-agricultural industries located in nearby town or villages, which not only could reduce the spread of the epidemic, but also could make the impacts of the work of outflow rural labor (most of the part-time labor) and the economy of villages and towns less affected by the epidemic. Meanwhile, different villages can selectively develop related enterprises, such as leisure tourism, health care, shared farms, and rural e-commerce (Taobao villages) according to the villages or towns’ geographical location, resource conditions, villagers’ willingness, etc. Another key to promoting non-agricultural employment of rural labor is the improvement of the welfare of migrant workers working in urban areas so that they can gradually settle down in cities or towns. The special household registration system in China is regarded as the main factor affecting the non-agricultural transformation of rural labor, where rural labor engaged in non-agricultural work in urban areas (nongmingong) cannot enjoy the same welfare and benefits as urban residents, such as education and medical resources, pension, etc. [74,75]. Similar to China, some studies in other countries show that high-wage firms, which tie pension benefits to the earnings of the worker, avoid hiring low-wage workers, as they have to offer all full-time workers the same health benefits. As a result, health insurance is mostly offered to full-time high-wage workers rather than part-time low-wage workers [39,76]. Thus, related policies and measures should be formulated to lower the conditions and improve the welfare for rural labor working in urban areas (nongmingong) entering cities and gradually settle down.
- (3)
- Improve the agricultural-subsidy system. The agricultural-subsidy is not only directly related to rural households’ income, but also directly affect the enthusiasm of farmers in agricultural production, further affecting food security [69,70]. Thus, build a reasonable agricultural subsidy system is of vital importance. Firstly, agricultural subsidies should be provided to farmers with actually growing grain, ensuring benefits to farmers engaged in agricultural production. Therefore, follow-up mechanisms on the distribution of agricultural subsidies could be implemented. Secondly, a flexible policy of the number of agricultural subsidies would be recommended; more specifically, since the number of agricultural subsidies depends on the farmland area cultivated by farmers, the total crops, and the market price of crops the agricultural subsidies per unit weight of the crops could be increased when the market price of crops drops and decreased when the latter rises. This could eventually incentivize subsidized agricultural management.
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Variables | Variable Definition | No-Transfer Households | Transfer-in Households | Transfer-out Households | ||||
---|---|---|---|---|---|---|---|---|
Total Samples | Pure-Agricultural Households | I Part-Time Households | II Part-Time Households | |||||
Outcomes | TI | total incomes (¥) | 62,109 | 69,040 | 51,441 | 57,149 | 111,394 | 39,522 |
AI | agricultural incomes (¥) | 46,927 | 63,971 | 34,465 | 19,271 | 94,180 | 0 | |
NFI | outworking incomes (¥) | 11,273 | 1164 | 13,564 | 33,403 | 8455 | 26,286 | |
SI | subsidy incomes (¥) | 2212 | 2653 | 2101 | 1256 | 3991 | 2347 | |
RI | rental-land incomes (¥) | 0 | 0 | 0 | 0 | 0 | 10,177 | |
Covariates | CL | contracted area (m2) | 23,212 | 29,755 | 19,148 | 11,834 | 18,841 | 18,821 |
LA | laborers (n) | 2.4 | 2.3 | 2.3 | 2.6 | 2.6 | 1.7 | |
APFA | agricultural productive fixed assets (¥) | 17,087 | 24,994 | 10,401 | 5274 | 21,241 | 2468 | |
NAPFA | non-agricultural productive fixed assets (¥) | 6646 | 8903 | 4055 | 4037 | 26,081 | 1746 | |
ELHH | education level of head of household (years) | 7 | 7.1 | 6.7 | 7 | 7.1 | 7.2 |
Variables | Farmland Transfer-in Equation | Farmland Transfer-out Equation | ||||||
---|---|---|---|---|---|---|---|---|
Equation 1 | Equation 2 | Equation 3 | Equation 4 | Equation 1 | Equation 2 | Equation 3 | Equation 4 | |
CL | –0.0104 ** | –0.0261 *** | 0.0029 | 0.0918 *** | 0.0217 *** | –0.0004 | 0.0427 *** | 0.138 *** |
LA | 0.201 ** | 0.269 ** | 0.281 * | –0.305 * | –0.836 *** | –0.694 *** | –0.728 *** | –1.2 *** |
APFA | 0 | 0 | 0 | 0.0001 *** | –0.0001 *** | –0.0002 *** | –0.0002 *** | –0.0001 ** |
NAPFA | 0 | 0 | 0.0001 *** | 0.0001 *** | 0 | 0 | 0 | –0.0001 ** |
ELHH | 0.0041 | 0.0283 | 0.0164 | –0.0297 | 0.0716 | 0.0972 | 0.104 | –0.0133 |
Intercept | –1.665 | –0.617 | –1.339 ** | –1.749 ** | 0.177 | 1.365 ** | 0.399 | 0.456 |
LR chi2(5) | 89.12 *** | 79.93 *** | 76 *** | 133.68 *** | 145.34 *** | 173.68 *** | 69.91 *** | 112.83 *** |
Pseudo R2 | 0.1156 | 0.1353 | 0.19 | 0.3562 | 0.2339 | 0.3568 | 0.206 | 0.3527 |
Decision-Making Equations | Matching Approaches | Equation of Farmland Transfer-in | |||
---|---|---|---|---|---|
Common Support | Pseudo R2 | LR chi2 (p) | Standardized Bias | ||
Equation 1 | Pre-matching | 662 | 0.11 | 84.63 (0) | 27.6 |
Radius matching | 656 | 0.007 | 3.16 (0.675) | 8.6 | |
Kernel matching | 0.007 | 3.57 (0.613) | 8.9 | ||
Equation 2 | Pre-matching | 437 | 0.13 | 76.88 (0) | 34.1 |
Radius matching | 391 | 0.002 | 0.91 (0.969) | 3.8 | |
Kernel matching | 0.002 | 0.95 (0.966) | 3.5 | ||
Equation 3 | Pre-matching | 297 | 0.185 | 74.07 (0) | 36.2 |
Radius matching | 272 | 0.018 | 7.84 (0.165) | 11.0 | |
Kernel matching | 0.021 | 8.80 (0.117) | 11.4 | ||
Equation 4 | Pre-matching | 284 | 0.358 | 134.34 (0) | 43.7 |
Radius matching | 165 | 0.003 | 0.71 (0.982) | 3.4 | |
Kernel matching | 0.008 | 1.69 (0.890) | 6.1 |
Decision-Making Equations | Matching Approaches | Equation of Farmland Transfer-out | |||
---|---|---|---|---|---|
Common Support | Pseudo | LR chi2 (p) | Standardized | ||
R2 | Bias | ||||
Equation 1 | Pre-matching | 610 | 0.230 | 84.63 (0) | 40.4 |
Radius matching | 516 | 0.002 | 3.16 (0.675) | 3.6 | |
Kernel matching | 0.003 | 3.57 (0.613) | 3.7 | ||
Equation 2 | Pre-matching | 385 | 0.349 | 170.08 (0) | 52.4 |
Radius matching | 264 | 0.01 | 3.07 (0.689) | 7.4 | |
Kernel matching | 0.009 | 2.72 (0.743) | 6.0 | ||
Equation 3 | Pre-matching | 245 | 0.204 | 69.18 (0) | 39.1 |
Radius matching | 222 | 0.004 | 1.32 (0.933) | 5.6 | |
Kernel matching | 0.005 | 1.55 (0.907) | 6.5 | ||
Equation 4 | Pre-matching | 232 | 0.353 | 112.93 (0) | 49.4 |
Radius matching | 176 | 0.006 | 1.37 (0.928) | 5.4 | |
Kernel matching | 0.004 | 0.87 (0.973) | 4.2 |
Equations of Decision-Marking | Matching Methods | Equations of Farmland Transfer-In | Equations of Farmland Transfer-Out | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Total Incomes | Agricultural Incomes | Outworking Incomes | Subsidy Incomes | Total Incomes | Agricultural Incomes | Outworking Incomes | Subsidy Incomes | Rental-Land Incomes | ||
Equation 1 | Radius matching | 38,307 *** | 39,316 *** | –3652 ** | 1682 *** | –10,080 *** | –33,480 *** | 14,244 *** | 241 | 9843 *** |
Kernel matching | 37,951 *** | 39,035 *** | –3819 ** | 1735 *** | –10,108 *** | –33,251*** | 13,963 *** | 244 | 9843 *** | |
The average value | 38,129 | 39,176 | –3736 | 1709 | –10,094 | –33,366 | 14,104 | 243 | 9843 | |
Equation 2 | Radius matching | 21,170 *** | 11,918 * | 6808 *** | 1417 *** | –18,146 ** | –55,268 *** | 26,344 *** | 161 | 10,684 *** |
Kernel matching | 22,082 *** | 12,764 ** | 6877 *** | 1428 *** | –20,464 *** | –57,598 *** | 26,325 *** | 255 | 10,684 *** | |
The average value | 21,626 | 12,341 | 6843 | 1423 | –19,305 | –56,433 | 26,335 | 208 | 10,684 | |
Equation 3 | Radius matching | 29,381 *** | 38,098 *** | –9746 *** | 429 | –12,459 ** | –34,147 *** | 12,759 *** | 77 | 9591 *** |
Kernel matching | 28,695 *** | 37,524 *** | –9686 *** | 354 | –12,813 ** | –34,511 *** | 12,886 *** | 48 | 9591 *** | |
The average value | 29,038 | 37,811 | –9716 | 392 | –12,636 | –34,329 | 12,823 | 63 | 9591 | |
Equation 4 | Radius matching | 16,251 ** | 39,771 *** | –23,899 *** | 916 *** | –22,637 *** | –18,495 *** | –6716 ** | 288 | 7082 *** |
Kernel matching | 15,526 ** | 39,537 *** | –24,420 *** | 924 *** | –22,780 *** | –18,477 *** | –6963 ** | 299 | 7082 *** | |
The average value | 15,889 | 39,654 | –24,160 | 920 | –22,709 | –18,486 | –6840 | 294 | 7082 |
The Types of Rural Households | The Status of Farmland Transfer | The Total Income (¥) | Changes in the Ratio of the Total Income (%) | Agricultural Income (¥) | Changes in the Ratio of Agri-incomes in the Total Income (%) | Outworking Income (¥) | Changes in the Ratio of Non-Agri Incomes in the Total Income (%) | Agricultural Subsidies (¥) | Rental-Land Income (¥) |
---|---|---|---|---|---|---|---|---|---|
All rural households | Without transfer | 62,109 | / | 46,927 | / | 11,273 | / | 2212 | 0 |
Transfer-in | 38,129 *** | 61.39 | 39,176 *** | 10.34 | –3736 ** | –10.63 | 1709 *** | 0 | |
Transfer-out | –10,094 *** | –16.25 | –33,366 *** | –49.48 | 14,104 *** | 30.64 | / | 9843 *** | |
Pure-agri households | Without transfer | 69,040 | / | 63,971 | / | 1164 | / | 2653 | 0 |
Transfer-in | 21,626 *** | 31.32 | 12,341 ** | –8.49 | –6843 *** | –7.95 | 1423 *** | 0 | |
Transfer-out | –19,305 *** | –27.96 | –56,433 *** | –77.50 | 26,335 *** | 53.61 | / | 10,684 *** | |
I part-time household | Without transfer | 51,441 | / | 34,465 | / | 13,564 | / | 2101 | 0 |
Transfer-in | 29,038 *** | 56.45 | 37,811 *** | 22.81 | –9716 *** | –21.59 | / | 0 | |
Transfer-out | –12,636 ** | –24.56 | –34,329 *** | –66.65 | 12,823 *** | 41.63 | / | 9591 *** | |
II part-time household | Without transfer | 57,149 | / | 19,271 | / | 33,403 | / | 1256 | 0 |
Transfer-in | 15,889 ** | 27.80 | 39,654 *** | 46.96 | –24,160 *** | –45.79 | 920 *** | 0 | |
Transfer-out | –22,709 *** | –39.74 | –18,486 *** | –31.44 | –6840 ** | 18.68 | / | 7082 *** |
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Chen, L.; Chen, H.; Zou, C.; Liu, Y. The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China. Land 2021, 10, 362. https://doi.org/10.3390/land10040362
Chen L, Chen H, Zou C, Liu Y. The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China. Land. 2021; 10(4):362. https://doi.org/10.3390/land10040362
Chicago/Turabian StyleChen, Lili, Hongsheng Chen, Chaohui Zou, and Ye Liu. 2021. "The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China" Land 10, no. 4: 362. https://doi.org/10.3390/land10040362
APA StyleChen, L., Chen, H., Zou, C., & Liu, Y. (2021). The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China. Land, 10(4), 362. https://doi.org/10.3390/land10040362