Abstract

Land fragmentation (LF) is widespread worldwide and affects farmers’ decision-making and, thus, farm performance. We used detailed household survey data at the crop level from ten provinces in China to construct four LF indicators and six farm performance indicators. We ran a set of regression models using OLS methods to analyse the relationship between LF and farm performance. The results showed that (1) LF increased the input of production material and labour costs; (2) LF reduced farmers’ purchasing of mechanical services and the efficiency of ploughing; and (3) LF may increase technical efficiency (this result, however, was not sufficiently robust and had no effect on yield). Generally speaking, LF was negatively related to farm performance. To improve farm performance, it is recommended that decision-makers speed up land transfer and land consolidation, stabilise land property rights, establish land-transfer intermediary organisations and promote large-scale production.

Highlights

  • Based on the unique crop-level survey data from ten provinces in China, the current study investigated the correlation between four indicators representing land fragmentation (LF) and six indicators representing farm performance

  • To the authors’ knowledge, this study is the first to investigate the relationship between LF and multiple production indicators and the first to comprehensively compare and analyse the “good” and “bad” effects of LF on farm performance

  • The results revealed that while controlling for other variables, LF increased the input of farmers’ material cost and increased the cost of labour input

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Summary

Introduction

Over the past four decades, China’s agriculture productivity has improved significantly [1], with a real growth rate of 6.1% in the Gross Value of Agricultural Output (GVAO) per year throughout 1978–2015 [2]. With the economic development of urban and rural areas, China’s land use has undergone a transition. Agricultural arable land from land fragmentation to large-scale management is regarded as an essential transition path. With the government’s firm policy of support, the land rental market has experienced rapid development. According to Ministry of Agriculture data, the total rental area of arable land in China was 0.6 million hectares in 1994 and exceeded 35.9 million hectares in 2018, with an average increase of 18.6%. According to the third national agricultural census results, the proportion of large-scale farming (more than 3.33 hectares in China’s southern provinces and more than 6.67 hectares in its northern provinces) across the total arable land area reached 28.6% in 2016

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