Outsourcing Fertilizer Mechanization Services to Different Types of Service Providers: Assessing the Impact on Fertilizer Application for Wheat Producers in China
{"title":"Outsourcing Fertilizer Mechanization Services to Different Types of Service Providers: Assessing the Impact on Fertilizer Application for Wheat Producers in China","authors":"Jiaojiao Ding, Amin Mugera, Xia Zhao","doi":"10.1002/agr.22048","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>Agricultural mechanization services (AMS) are important for promoting sustainable agricultural development. However, little is known about the effect of outsourcing fertilizer mechanization services (FMS) for fertilizer application to different types of service providers. This study simultaneously investigates the determinants and effect of outsourcing FMS to different types of service providers for fertilizer application in rural China. The multinomial endogenous treatment effects model that accounts for potential selection bias and endogeneity is employed to analyze cross-sectional survey data of wheat producers. The results reveal that the likelihood of outsourcing FMS is influenced by household (gender, education, off-farm employment, and risk attitude) and farm (farm size, land topography, soil fertility) characteristics, membership to cooperative, and the availability of AMS at village level. The treatment effect estimates suggest that outsourcing FMS can decrease fertilizer application by at least 6.6%. Outsourcing both FMS and fertilizer supply has a greater reducing effect on fertilizer application compared to only outsourcing FMS. Besides, outsourcing both FMS and fertilizer supply to organization providers has a higher effect on reducing fertilizer application and enhancing yield compared to outsourcing to individual service providers. The results have policy implications for promoting agri-environmental sustainability in the agricultural sector.</p>\n </div>","PeriodicalId":55544,"journal":{"name":"Agribusiness","volume":"42 2","pages":"460-472"},"PeriodicalIF":2.0000,"publicationDate":"2026-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Agribusiness","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/agr.22048","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2025/4/7 0:00:00","PubModel":"Epub","JCR":"Q2","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 0
Abstract
Agricultural mechanization services (AMS) are important for promoting sustainable agricultural development. However, little is known about the effect of outsourcing fertilizer mechanization services (FMS) for fertilizer application to different types of service providers. This study simultaneously investigates the determinants and effect of outsourcing FMS to different types of service providers for fertilizer application in rural China. The multinomial endogenous treatment effects model that accounts for potential selection bias and endogeneity is employed to analyze cross-sectional survey data of wheat producers. The results reveal that the likelihood of outsourcing FMS is influenced by household (gender, education, off-farm employment, and risk attitude) and farm (farm size, land topography, soil fertility) characteristics, membership to cooperative, and the availability of AMS at village level. The treatment effect estimates suggest that outsourcing FMS can decrease fertilizer application by at least 6.6%. Outsourcing both FMS and fertilizer supply has a greater reducing effect on fertilizer application compared to only outsourcing FMS. Besides, outsourcing both FMS and fertilizer supply to organization providers has a higher effect on reducing fertilizer application and enhancing yield compared to outsourcing to individual service providers. The results have policy implications for promoting agri-environmental sustainability in the agricultural sector.
期刊介绍:
Agribusiness: An International Journal publishes research that improves our understanding of how food systems work, how they are evolving, and how public and/or private actions affect the performance of the global agro-industrial complex. The journal focuses on the application of economic analysis to the organization and performance of firms and markets in industrial food systems. Subject matter areas include supply and demand analysis, industrial organization analysis, price and trade analysis, marketing, finance, and public policy analysis. International, cross-country comparative, and within-country studies are welcome. To facilitate research the journal’s Forum section, on an intermittent basis, offers commentary and reports on business policy issues.