Why do aging households in agriculture prefer land abandonment to transfer? Evidence from hill plots in Sichuan, China

Abstract

Increased aging of the agricultural population may lead to a reconfiguration of land elements, but existing studies have not analyzed this on a plot level. China's vast hilly and mountainous regions will have a more serious impact on agricultural aging, but this context has still not received enough attention. Based on primary data from 2602 plots and 1080 farm households in the hilly areas of Sichuan, using human capital theory and instrumental variables approach, it is found that aging in agriculture will promote the abandonment of plots in the hilly areas, especially those that are remote, small in size and poor condition. Aging in agriculture will inhibit the out‐migration of plots in the hilly areas, and aging increases the abandonment of plots. In addition, this paper finds that the imperfect development of the land transfer market in hilly areas and the strong farmers' land endowment effect are the main reasons limiting land transfer. However, the inhibitory effect of the endowment effect diminishes with age. This study helps to rationally view the value of abandoned land and provides a new research perspective for parcel redistribution.