Production and Market Participation of Buckwheat Farmers: Micro-Evidence from Shaanxi Province, China

Abstract

Buckwheat is an important coarse grain often grown in China’s marginal and dry mountainous areas; however, few empirical studies have quantified the factors that increase land productivity and encourage buckwheat farmers’ market participation. To address this gap in the literature, this study aims to empirically identify the factors associated with the land productivity of buckwheat, those associated with buckwheat farmers’ decisions regarding market participation, and those associated with buckwheat selling prices; unique survey data collected from rural buckwheat farmers in China in 2016 are used for the analysis. Our estimation results showed that fertilizer costs and rental machine costs were negatively associated with buckwheat income, indicating the sub-optimality of buckwheat farming. Farmers are likely to sell their buckwheat at high prices if they conduct the initial processing and sell it to processing firms. Providing technical training on the initial processing and information on market channels for buckwheat farmers could serve as efficacious policy interventions. The household head’s educational attainment was positively associated with buckwheat productivity and market participation, indicating the importance of the effort to narrow the educational gap between urban and rural areas in China.