Farmland lease, high-rent threat and contract instability: evidence from China

Zhu, Wenjue; Paudel, Krishna P.; Inoue, Sean; Luo, Biliang

doi:10.1108/caer-06-2020-0142

Cited by 8 publications

(5 citation statements)

References 56 publications

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“…This motivates farmers to preserve and invest in land [55]. In contrast to Zhu et al [56], this study suggests that farmers are more likely to rationalize farming and increase farm income to compensate for the transfer cost in the context of remunerative transfer [57]. This increases farmers' willingness to protect arable land, as verified by H3.…”

Section: Discussionmentioning

confidence: 54%

Land Transfer Contract and Farmers’ Straw-Returning Behavior: Evidence from Rural China

Li,

Huang,

Liu

et al. 2024

Land

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Straw return is a crucial method for utilizing agricultural waste as a resource. Against the backdrop of increasing straw production in China, most scholars focus only on the behavioral decision of whether farmers choose to transfer land. However, few studies have touched on the specific content of the land transfer contract and its impact on farmers’ behavior. This paper innovatively starts from the perspective of land transfer contracts to explore the impact of land transfer contracts on straw return in terms of standardization, stability, and profitability and to make theoretical contributions to the rational use of straw and the protection of arable land resources. Using data from the 2020 China Rural Revitalization Survey (CRRS) database, this study empirically analyzed the effects of different elements of land transfer contracts on straw returns to the field. The results show that: (1) Written transfer contracts are more effective than verbal contracts in encouraging farmers to adopt the straw return behavior. (2) Fixed-term contracts are more stable and can effectively promote farmers' adoption of straw return technology. (3) The remunerative transfer method is more profitable and can effectively encourage farmers to adopt straw return technology compared to the non-remunerative transfer method. (4) Farmers in mountainous areas or with smaller areas of farmland have a lower probability of adopting straw return technology. Therefore, the important role of remunerative, fixed-term, written land transfer contracts in the process of straw return should be emphasized, and the adoption rate of straw return should be increased through differentiated policy guidance and comprehensively promoting the sustainable development of agriculture.

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Section: Discussionmentioning

confidence: 54%

Land Transfer Contract and Farmers’ Straw-Returning Behavior: Evidence from Rural China

Li,

Huang,

Liu

et al. 2024

Land

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“…The rent of agricultural land transfer contracts varies from rent-free or low-rent to high-rent. The rent level mirrors the degree of marketization [ 28 ]. Market demand generally dictates high rents.…”

Section: Literature Review and Commentarymentioning

confidence: 99%

“…Conversely, in areas where farmland is expansive and conducive to large-scale operations, market demand is higher. Here, farmers prioritize income security, showing a marked preference for specific contract types and lease periods, with correspondingly higher rent expectations [ 45 ].…”

Section: Data Sources and Modelsmentioning

confidence: 99%

Social capital, government guidance and contract choice in agricultural land transfer

He,

Huang

2024

PLoS ONE

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This study explores the impact of farm households’ social capital characteristics and local government policies on the selection of farmland transfer contracts in China’s rural industrial revitalization context. Utilizing field research data from 1,979 households in ethnic areas of Hunan Province, this paper constructs an econometric model to assess how farm households’ social capital and local governments’ involvement in rural industrial revitalization influence farmland transfer contract selections. The findings indicate that, lacking government program support, farmers’ social capital significantly affects contract type and duration, but not the rent. Specifically, farmers possessing extensive social capital prefer verbal and short-term contracts (coefficients of 0.525 and 0.643, significant at the 5% level), whereas their influence on rent (coefficient of 2.418, significant at the 5% level) manifests under government program support. These results challenge the conventional theory of farmland transfer contracts and offer substantial empirical support for the development of local government policies in rural industrial revitalization, underlining the critical role of government guidance and social capital in enhancing farmland transfer.

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“…Therefore, compared with transfers within the village, an oral informal contract is more likely to be adopted when farmland is transferred to relatives and friends, and the rent is lower (X. Li et al, 2021; Zhu et al, 2021).…”

Section: Theoretical Basis and Research Hypothesesmentioning

confidence: 99%

Influences of Farmland Transfer Transaction Costs on Contract Choices from the Perspective of Differential Order Governance: Based on a Survey of Farmers in Henan Province

Wang,

Wen

et al. 2024

Sage Open

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Under the heterogeneous situation of heterogeneity of farmland circulation entities, transaction costs are the key factors to optimize the selection of circulation contracts, and reducing transaction costs is an important realization path to promote farmland circulation in a reasonable and orderly manner and accelerate the process of agricultural modernization. Based on the survey data of 814 farming households in Henan Province, this study explores the transaction costs on contract selection based on the differential order governance. The results show that (a) in the transfer of farmland, farmers’ choice of contracts is restricted by their degree of association with the transaction entity, which is the result of differential order governance. (b) The influence of differential order governance on the selection of transfer contracts is constrained by the governance context. Farmers tend to choose formal written contracts in the context of weak ties governance but choose verbal or informal contracts under strong relationship governance. (c) The impact of transaction costs on the selection of farmland transfer contracts is constrained by the three-stage scenarios as before, during, and after the transaction. In different transaction stages, the higher the transaction costs are, the more likely farmers are to choose a formal written contract. The findings show the importance of the rules of human relations in the society of acquaintances in saving transaction costs. The importance of the formal system and informal institutions, such as trust and reputation, and avoiding one-size-fits-all suggestions should be involved in the formulation and implementation of farmland transfer policies.

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Farmland lease, high-rent threat and contract instability: evidence from China

Cited by 8 publications

References 56 publications

Land Transfer Contract and Farmers’ Straw-Returning Behavior: Evidence from Rural China

Land Transfer Contract and Farmers’ Straw-Returning Behavior: Evidence from Rural China

Social capital, government guidance and contract choice in agricultural land transfer

Influences of Farmland Transfer Transaction Costs on Contract Choices from the Perspective of Differential Order Governance: Based on a Survey of Farmers in Henan Province

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