How internet use affects the farmland rental market: An empirical study from rural China

Abstract

The farmland rental market plays a vital role in China. This study investigates the Internet’s influence on leasing out of the farmland by rural households. The study is based on the 2018 China Family Panel Studies (CFPS) survey data and a binary logit model to explore the influence of internet use from four aspects, including whether the use of the Internet, the mode, the time, and the frequency of internet use grouped by different purposes. Findings show that household heads who use the Internet are more likely than non-users to lease out farmland. More intense internet use (more hours) is directly correlated with internet use in the farmland rental market. Using the Internet via mobile phone has a more significant impact on leasing out farmland than using it via computers. Further analysis shows that internet use significantly promotes rural households’ social networks and increases their likelihood of engaging in non-farm employment and business activities, thus contributing to farmland rental decisions. The government should improve the information infrastructure and provide skills training in information management in rural areas to promote farmland rental activities.