From informal farmland rental to market-oriented transactions

What is it about?

Informal farmland rental markets have taken root in Chinese agriculture. However, farmland rental markets need to be transparent for increased efficiency and smooth functioning. This study uses three waves of nationally representative panel data and a difference-in-differences framework to examine the effect of China's Land Transfer Service Centers (LTSCs) on market-oriented farmland transfers.

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Photo by Andreas Maier on Unsplash

Photo by Andreas Maier on Unsplash

Why is it important?

Assessing the impact of LTSCs could provide policymakers with targeted insights and help develop more specialised land transfer organisations. To our knowledge, this is the first study to cover LTSCs across China. And while previous studies typically focus on the quantity of farmland transfers, this study has observed a new trend in China's land rental market – towards market-oriented transactions. Since informal farmland rental transactions are still prevalent in developing countries, our results may inform policymaking to improve the efficiency of the land rental market.