The impact of land consolidation on farmer income: evidence from high-standard farmland construction in China

Abstract

Land consolidation has become an organized and widely implemented project in rural areas. However, research remains somewhat scarce on the contributing mechanism of land consolidation to farmer income in developing countries. Using provincial panel data from China, this study employs a fixed effects model to analyze the influence of high-standard farmland construction on farmer income and underlying mechanisms. Results suggest that the implementation of high-standard farmland construction can significantly augment farmer income. Reduction in agricultural production cost, improvement in agricultural management benefit and increase in non-farm income have led to the boost in income. The relationship between income and high-standard farmland construction exhibits regional disparities, with the most significant impacts concentrated in economically developed areas and low relief degree areas. Our findings suggest that it is imperative for the Chinese government to persistently promote the establishment of high-standard farmland, and further enhance its positive influence on advancing agricultural cost-effectiveness and expanding non-farm income channels for farmers.