Farmland Rental Market, Outsourcing Services Market and Agricultural Green Productivity: Implications for Multiple Forms of Large-Scale Management

Abstract

Large-scale management is the key to realizing long-term agricultural growth in smallholder countries. Land-scale management and service-scale management are two forms of agricultural large-scale management. The former is committed to changing the small-scale management pattern, but the latter tends to maintain it. There has been a lack of discussion and controversy about the relationship between the two. From the perspective of market maturity, this paper explores whether the two are complementary or mutually exclusive and how their complementary or mutually exclusive relationship affects agricultural green productivity. The results show the following: Land-scale management and service-scale management are complementary, not superficially contradictory. The benign interaction between the two has a consistent improvement effect on green productivity in both the short and long term, which has spatial spillovers appearing in the long term. The reasons are as follows: The farmland rental market can reverse the inhibitory effect of the current low-maturity outsourcing services market on green productivity. The outsourcing services market can delay the arrival of the inflection point beyond which expansion of farmland rental transactions reduces green productivity, and amplify the positive effect of farmland rental on it. Although the degree of benign interaction between the two forms of large-scale management has gradually increased in recent years, it is still low overall. Agricultural large-scale management in China is still in the stage driven by land-scale management. Smallholder countries such as China need not worry prematurely about which large-scale management path to take, and they should treat both forms of large-scale management with an equal perspective to accelerate the high-level interaction between them.