The impact of non-farm employment on the stable land contracting willingness of farm households: Evidence from rural China

Abstract

This study examines whether off-farm employment can enhance farm households' willingness to retain their current land contract rights, particularly as the second round of land contracting approaches its conclusion. The study yields three findings: (1) About 55 % of farmers expressed their desire to keep the current land contracting arrangements, suggesting that a significant number of farmers still wish to adjust their land once the second round of land contracting expires. (2) Non-farm employment within farm households significantly boosts their willingness to stabilize the current land contract relationship. Agricultural labor inputs and land security functions serve as intermediaries in this regard. (3) The likelihood of maintaining stable land contractual relationships through non-farm employment is constrained by improvements in the land transfer and agricultural socialized services market. In regions with limited land transfer and undeveloped agricultural socialized service markets, the influence of non-farm employment on farm households' desire to establish stable contracting ties is more pronounced. Based on these findings, the following conclusions and recommendations are made: (1) During the implementation of policies aimed at stabilizing contracting rights, it is crucial to maximize the satisfaction of the majority of farm households' willingness to maintain contracting relationships. Additionally, the objective land transfer needs of some farm households should be fully respected, and the land rights and interests of various types of farm households should be safeguarded. (2) Non-farm employment offers a potential solution to the tension between the government's goal of stabilizing contractual relationships and farm households' desire for land transfer. By increasing non-farm employment opportunities in rural areas, it becomes feasible to facilitate the migration of agricultural laborers and reinforce their commitment to fulfilling current contractual obligations.