Agricultural Economics - In Press
Can agricultural subsidy reform promote reduction of fertilizer non-point source pollution? Evidence from ChinaOriginal Paper
Fusheng Liang, Guangsi Li, Wo-lin ZHENG, Fangyuan Sun, Qian Yang
Following the increase in grain production driven by direct subsidies in traditional agriculture, the decline in ecological environment quality caused by excessive use of modern fertilizers has weakened the effectiveness of subsidy policies. Consequently, curbing agricultural pollution and the elevation of ecological quality have emerged as pivotal directions for the reform of agricultural subsidies. This study examines the impact of agricultural “three subsidies” reform policy on agricultural fertilizer non-point source pollution (AFNSP) by means of time-varying difference-in-differences (DID) models and spatial DID models, using China’s province-sector panel data from 2008 to 2022. The findings suggest that: first, the “three subsidies” reform can significantly reduce AFNSP and improve ecological quality. Second, the implementation of large-scale operations and green technology progress (GTP) represent effective paths for the “three subsidies” reform to reduce AFNSP. While the rise in the minimum wage standard accelerates the mobility of rural labor, thereby enhancing the effectiveness of policy implementation. Third, there are significant spatial spillover effects of the policy implementation, which contribute to the overall reduction of regional AFNSP. Fourth, the effects of policy implementation vary across different natural environments and farming cultures. Last, the enhancement of agro-ecological quality resulting from the "three subsidies" reform contributes to an improvement in food security. The findings serve as a valuable reference for refining agricultural subsidy reform, while also offering insights for the development of a comprehensive framework that ensures agro-ecological security and food security.
How does air pollution perception affect farmers’ decisions on agricultural mechanisation? Evidence from rural ChinaOriginal Paper
Junkai Ma, Xintong Liang
Abstract: Air pollution is beyond an environmental or health issue. The impact of air pollution on farmers’ decisions on agricultural mechanisation has always been overlooked and debate persists over subjective and objective pollution. Adopting data set from the China Labour Force Dynamics Survey, we investigate the influence of air pollution perceptions on farmers’ mechanised farming. The endogeneity problem is addressed through the instrumental variable method. The consequences reveal that air pollution perceptions strengthen farm mechanisation, and reduced farming time is the key intrinsic mechanism through which perceived air pollution affects farmers’ decisions on agricultural machinery. Additionally, this impact is more pronounced in male household heads and farmers in the plains. These findings render valuable policy implications for farmers chronically exposed to air pollution and for agricultural modernization in China, including the necessity of improving air conditions and encouraging agricultural machinery services.
Does Livestock Manure Recycling Among Acquaintance Networks Decouple crop and livestock production? Evidence from rural ChinaOriginal Paper
Ying Wang, Guanghui Jiang, Jisheng Min
Livestock manure serves as a vital source of organic fertilizer, with efficient utilization being crucial for sustainable agricultural development. However, with the development of specialized high-input agriculture, livestock manure recycling (LMR) is currently inefficient and leading to the imbalance between surplus manure and croplands. This study theoretically and empirically investigates whether LMR among acquaintance networks influence the crop-livestock integration production (CLI). Based on survey data of swine farmers in rural China, the estimates indicate that LMR among acquaintance networks enhances the degree of CLI but may result in over-application of manure. Conversely, LMR with outside villagers or organizations is more likely to reduce the degree of CLI, possibly leading to under-application of manure. The motivation behind farmers' LMR plays a crucial role. Furthermore, the study indicates that formal institution can break the constraints of acquaintance networks on LMR and restructure the crop-livestock relationship beyond the household level. Our findings emphasize that LMR within rural China’s acquaintance networks are in a transition phase, exhibiting both relational and market orientation characteristics. It is currently essential to maintain the balance between crop and livestock production, advance the development of LMR social services when designing LMR policies, and to leverage the complementary roles of informal and formal institutions.
A Study on the Behavior and Heterogeneity of Family Farms Participating in Contract Farming in Southwest Mountain Areas: A Social Capital PerspectiveOriginal Paper
Xiaoliang Liu, Lili Song, Enguang Zhang
The order-based agriculture is in line with the inherent requirements of the high-quality development of modern agriculture in the new era. This study explores the impact of social capital on family farm participation in order-based agriculture in southwestern China's mountainous regions, using survey data from 557 farms and Logit and KHB mediating effect models. The results show that social capital positively influences participation, with stronger social networks, trust, and norms enhancing involvement. Information availability mediates this relationship, although social capital's direct impact remains dominant. The findings highlight the importance of improving social capital and information access to promote family farm participation. Additionally, focusing on younger and middle-aged family farms in single-product production is key for sustainable growth.