Research on the impact of agricultural green production on farmers' technical efficiency: evidence from China.

Abstract

Agricultural green production (AGP) and efficiency improvement of smallholders' management are the objective requirements for the development of China's modernized agriculture and the understanding of the rural vitalization strategy. Based on field survey data of 582 rice farmers in Shaanxi Province, this study used the Logit model to analyze the determinants of smallholders' adoption of agricultural green production technology (AGPT) and used the propensity score matching (PSM) method to measure the effect of AGPT on the technical efficiency (TE) of rice production and the heterogeneity of this influence among smallholders. Results showed that the AGPT adoption rate and the mean of rice production TE were 15.1% and 0.312, both had a lot of room for improvement. Furthermore, it was found that household's characteristics, family characteristics, agricultural management characteristics, social characteristics, and cognitive characteristics significantly affect smallholders' AGPT adoption, and the AGPT adoption significantly increased the TE of rice production by 18.8 to 24.5%. Besides, farmers with older age, less education, more specialized planting, more fragmented land, and more off-farm employment adopting AGPT could significantly improve the TE; the increase proportion was 29.8%, 29.5%, 21.3%, 27.2%, and 16.8%. The study also showed that the AGPT could not significantly increase the rice output value of smallholders. In addition, considering the endogeneity problem caused by sample selection bias, the study re-estimated using the endogenous transformation regression (ESR) model which showed that the promotion of AGPT to TE was still robust. The study puts forward policy recommendations on how to further promote the adoption of AGPT and improve the TE by farmers.