Does the Agricultural Productive Service Embedded Affect Farmers’ Family Economic Welfare Enhancement? An Empirical Analysis in Black Soil Region in China

Abstract

The modernization of agriculture in China has begun to take shape, but some groups of farmers still have relatively weak access to welfare and live in poverty, which is closely related to national food security and sustainable agricultural development. Based on survey data from northeastern China, this study analyzes the logical framework of “Agricultural Productive Services (APS) Embedded—Farmers’ Family Economic Welfare Enhancement” by the endogenous switching regression model. The main findings are as follows. First, the purchase of APS brings a significant positive impact on farmers’ family economic welfare improvement, mainly through the income effect and the substitution effect. Second, with the income effect, there are significant differences in the strength of the “pulling power” of different forms of APS for farmers’ family economic welfare. Compared with farmers who purchase APS for the entire production chain, farmers who purchase only some of the services are more likely to increase their welfare in the later stages. Third, with the substitution effect, the re-employment behavior of the rural surplus laborers who are “squeezed out” under the embedding of APS is promoted, which makes farmers’ income channels, income types, and income opportunities diversify, and their welfare will be more obviously strengthened after purchasing services. In order to enhance farmers’ welfare more efficiently and meet their needs for a better life, this study suggests a combination of farmer information archiving and labor market information transparency to reduce service risks, expand employment channels, and enhance the effectiveness of the linkage between farmers and service providers.