The Impact of Part-Time Employment on the Grain-Growing Decisions of Smallholder Farmers in the Main Grain-Producing Areas of China Based on the Mediating Effect of Agricultural Production Services

Abstract

Part-time farming is a common characteristic of smallholder farmers in China at present, which is expected to persist in the long term. If China is to promote sustainable agricultural development, it is important to consider the impact of part-time employment characteristics on the grain-growing decisions of smallholder farmers. To analyze the impact mechanisms of smallholder farmers’ part-time employment on their grain-growing decisions, we used data consisting of 14,539 samples collected by a survey of the former Chinese Ministry of Agriculture National Rural Fixed Observation Point from 2009 to 2015 to empirically analyze the effect of the extent of smallholder farmers’ part-time employment on their grain-growing decisions using a dynamic panel regression model. Then, we constructed a mediating effect test model using the dynamic panel regression model as the benchmark model in order to empirically test the mediating effect of the adoption of agricultural production services. The results are as follows: as the extent of smallholder farmers’ part-time employment grows, smallholder farmers significantly reduce the sown areas of wheat and corn; furthermore, the adoption of agricultural production services is an important mediating variable to curb the negative effects of the extent of smallholder farmers’ part-time employment on their grain-sowing areas, and the “Extent of Smallholder Part-time Employment (EPE)→Adoption of Agricultural Production Services→Grain-Planting Decisions” is an important path by which the extent of smallholder farmers’ part-time employment affects their grain-growing decisions. Notably, all of the findings passed the influence mechanism test and, after a robustness test, remained valid. Based on the research findings, we propose policy recommendations, suggesting that the construction of agricultural production service systems should be improved with the orientation of high-quality agricultural development; the minimum purchase prices of wheat and corn should be appropriately increased in order to ensure that smallholder farmers receive reasonable economic returns from growing grain; and the attractiveness of growing grain to smallholder farmers should be improved.