Decision-Making Mechanism of Farmers in Land Transfer Processes Based on Sustainable Livelihood Analysis Framework: A Study in Rural China

Abstract

The act of land transfer in rural areas is an important decision-making mechanism for farmers, to enhance resource allocation efficiency and promote capital mobility, and this act is of strategic importance in promoting the level of agricultural scale and mechanization, land system change, and, thus, the sustainable development of livelihoods and production in China. This study aims to explore farmers’ decision-making mechanisms in the process of land transfer in rural areas, by constructing a theoretical framework. Structural equation modeling was used, based on data from a survey of rural families in the Liaoning Province area of Northeastern China. The main findings are as follows: (1) The seven types of exogenous latent variables, including environmental vulnerability, policy, and five main livelihood assets (natural capital, physical capital, financial capital, human capital, and social capital), are intermediary in farmers’ land transfer behavior, which then positively affect farmers’ livelihood outcomes. (2) Among the exogenous latent variables affecting farmers’ land transfer, human assets have the most significant positive effect, followed by social assets and physical assets, family labor force share, frequency of work information exchange, and number of production tools, greatly affect the corresponding variable. (3) Natural assets play the most important role and have a negative effect on farmers’ land transfer decision; contracted area of land per family is the greatest impacted measurable variable of this. The results of the study suggest that the government should strengthen skills training for farmers, improve the land transfer policy system, and provide appropriate subsidies in a regionally targeted manner. Thus, it can promote the transformation of Chinese-style agricultural modernization and achieve rural revitalization.