Unlocking Agricultural Modernization: Economic Factors Shaping Maize Farmers' Adoption of Outsourced Services

Abstract

Effective farmland management is crucial for enhancing agricultural competitiveness, ensuring food security, and achieving agricultural modernization. In the context of China's small farming system, connecting small farmers with modern agriculture poses a significant challenge. This research employs a quantitative approach to investigate the impact of factor pricing on the demand for agricultural production services, focusing on labor prices, land rent, and income from agriculture. Utilizing data from the Rural Revitalization Survey (CRRS), covering 45 villages across six cities and two provinces, the study utilizes the Double Hurdle Model to address sample selection bias. Descriptive statistics and participation rates reveal patterns across various agricultural activities, and average costs for key services are presented. Estimated coefficients and significance levels demonstrate intriguing dynamics in Tillage, Sowing, and Harvesting Services. Small-scale farmers exhibit elastic demand, emphasizing the impact of service costs on decisions, while large-scale farmers display inelastic demand for harvesting services. Regression analyses highlight challenges faced by small-scale farmers, including impediments to tillage and harvesting services adoption due to high associated costs. In contrast, large-scale farming operations show resilience to some cost factors. The study provides actionable insights for policymakers, agricultural service providers, and farmers, contributing significantly to the discourse on sustainable farming practices. However, limitations include assumptions about uniform service distribution across regions and reliance on cross sectional data, suggesting the potential for enhanced reliability with the inclusion of panel data in future research.