How Does Farmland Transfer-Out Reshape Household Consumption Structure? Insights from Generational Heterogeneity in Rural China

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China’s ongoing urbanization, expanding land transfer, has reshaped rural land use and generational consumption patterns. Using three waves of China Family Panel Studies data, this study applies a two-way fixed effect model to examine the impact of farmland transfer-out on generational consumption structure and explores the mediating role of household income, the moderating role of non-agricultural income share, and regional and income heterogeneity. Findings show the following: (1) Farmland transfer-out significantly increases subsistence, developmental, and hedonic consumption among middle-aged and young farmers, with the greatest rise in hedonic consumption. For elderly farmers, only subsistence consumption increases, and to a lesser extent. (2) Among middle-aged and young farmers, transfer-out raises household income, boosting all consumption types; a higher share of non-farm income further strengthens subsistence and hedonic consumption. For elderly farmers, while income increases, a higher non-farm income share weakens the income effect on subsistence consumption. (3) Regionally, land transfer-out significantly boosts subsistence and hedonic consumption in the eastern region for younger farmers, and all three types—especially subsistence—in the central and western regions. Elderly farmers in the east also see a rise in subsistence consumption. (4) An income heterogeneity analysis shows stronger effects for low-income younger farmers and high-income elderly farmers. Based on these findings, this study proposes targeted policies to promote farmland transfer-out, offering insights for optimizing land use and enhancing rural consumption, with implications for other countries’ land management.