The Effects of Off-Farm Employment on Non-Timber Forest Product Plantations

Abstract

Non-timber forest product plantations (NTFP plantations), also known as “economic forests” in China, refer to forest plantations cultivated for the production of non-timber products such as fruits, nuts, oils, seasonings, and medicinal materials. With a rapid increase in the total area in the past two decades, NTFP plantations have become an important type of forestland use in China. The shift of agricultural labor to the non-agricultural sector caused by rising salaries in China will inevitably have a great impact on land use, forestry, and agricultural production. To understand the effects of off-farm employment on the development of NTFP plantations in China, a total of 709 valid household questionnaires from Sichuan and Shaanxi provinces were collected. Heckman’s two-stage model was employed in the empirical analysis. The results of the study show that off-farm employment has a significant positive effect on both the probability that a household has planted NTFP plantations and the plantation area. Households engaged in off-farm employment would prefer to plant NTFP plantations. Moreover, the higher the degree of participation in off-farm employment, the more likely households are to choose to plant NTFP plantations. The area of NTFP plantations would increase with the increase in off-farm employment degrees. Besides, the age and education level of the household head show a positive effect on the NTFP plantation planting. The implication of the results is that with a continuing increase in the proportion of off-farm employment, NTFP plantation cultivation could also continue to expand. Funds are still an important constraint for households to choose to plant NTFP plantations. Therefore, if policymakers want to promote the development of NTFP plantations on collectively owned forestland, they should first resolve households’ financial constraints.