Land Use Transitions and Farm Performance in China: A Perspective of Land Fragmentation

Abstract

Land fragmentation (LF) is widespread worldwide and affects farmers’ decision-making and, thus, farm performance. We used detailed household survey data at the crop level from ten provinces in China to construct four LF indicators and six farm performance indicators. We ran a set of regression models using OLS methods to analyse the relationship between LF and farm performance. The results showed that (1) LF increased the input of production material and labour costs; (2) LF reduced farmers’ purchasing of mechanical services and the efficiency of ploughing; and (3) LF may increase technical efficiency (this result, however, was not sufficiently robust and had no effect on yield). Generally speaking, LF was negatively related to farm performance. To improve farm performance, it is recommended that decision-makers speed up land transfer and land consolidation, stabilise land property rights, establish land-transfer intermediary organisations and promote large-scale production.