Effect of Spatial Characteristics of Farmland Plots on Transfer Patterns in China: A Supply and Demand Perspective

Abstract

(1) Background: The tense relationship between man and land makes transferring farmland rights in the market critical for improving agricultural production efficiency and promoting large-scale agricultural management. (2) Methods: This study considers the impact of the spatial characteristics of farmland plots on the economies of scale of farmers in terms of farmland use and heterogeneity. The effect of plots’ area and location on the directional flow of plots in the farmland transfer market from the perspective of matching supply and demand is also investigated. An empirical test is conducted on farmer actions and plot characteristics data based on surveys from 2015 and 2018 in the Chinese provinces of Heilongjiang, Henan, Zhejiang, and Sichuan. (3) Results: The plots’ area and location affect economies of scale for different potential transfer plots. This leads to large plots and adjacent plots in the market transferring to large-scale households, while scattered small plots mainly transfer to ordinary households. (4) Conclusions: The fixed spatial characteristics of the plots determine the scattered circulation of farmland in the transfer market, hindering the centralized utilization of farmland and restricting efficiency in farmland transfer market allocation. The findings from the context of China are similar to what has been found elsewhere. This suggests the need for a unified trading platform for farmland transfer and strengthening the mutual transformation of land and agricultural machinery.