The Effect of Land Right Stability on the Application of Fertilizer Reduction Technologies—Evidence from Large-Scale Farmers in China

Abstract

This article examines the impact of the stability of the management rights of transferred land (TLMR) on the adoption of technologies aiming to reduce the use of chemical fertilizers (ARFTs) based on the survey data of large-scale grain growing households in Anhui, China. Using the IV-Probit model, the present paper defines the stability of TLMR and the results estimated by IV-Probit model shows that a one-year extension of land lease period can increase the probability of using organic fertilizer and soil-testing formula fertilizer by 3.16% and 4.92%, respectively, while contract breaching in the lease period can reduce the probability of using organic fertilizer and soil-testing formula fertilizer by 46.9% and 51.38%, respectively. However, the land-lease period and land transfer contract breaching in the lease period have no significant effect on the use of farmyard manure by large-scale grain growing households. The main conclusion is that improving the stability of TLMR is conducive to prompting large-scale grain growing households to adopt ARFTs, especially the adoption of organic fertilizer and soil-testing formula fertilizer. The government should improve the stability of TLMR by standardizing the form and content associated with land transfer contracts and setting the minimum land-lease term.