Exploring the Role of Agricultural Services in Production Efficiency in Chinese Agriculture: A Case of the Socialized Agricultural Service System

Abstract

In recent decades, the Chinese government launched a socialized agricultural service system to help smallholders quickly modernize. This system helps farmers adopt modern-day farming operations to meet ever-increasing food and fiber requirements. The present study was conducted to analyze the impacts of this system on agricultural production efficiency. To this end, the Hubei province of China was selected, and the required data were retrieved from the Hubei Statistical Yearbook and Rural Statistical Yearbook for the years 2008 to 2019. The entropy method was applied to measure the extent of the adoption of socialized and individual agricultural services, while a data envelopment analysis (DEA) was used for measuring production efficiency. Grey correlation and regression analyses were carried out to analyze the association between production efficiency and agricultural service availability/uptake and the determinants of the former, respectively. The results illustrate that the agricultural socialized service level has increased. Specifically, the service levels of agricultural mechanization and financial insurance increased most rapidly in terms of individual services with the largest numbers of adopters. Science and technology and material services were found to exhibit the most significant relationships with the production efficiency of farmers. The results indicate a greater role of service provision in moderate-to-high-scale development, leading to land productivity and thereby improving agricultural production efficiency. The results also imply a higher demand for socialized agricultural services among farmers considering the value-added potential of such an integrated system with greater spillover options for achieving self-sufficiency in agriculture and ensuring food security.