How does farmers lease more agricultural land affect pesticide inputs? Microscopic evidence from Chinese farmers

The intensification of pesticide use, while ensuring agricultural productivity, has led to suboptimal environmental performance in numerous countries, including China. Recent increases in land leasing activities among Chinese farmers raise critical questions regarding their potential impact on pesticide usage and the underlying mechanisms involved. This study develops a theoretical model of optimal pesticide input equilibrium, informed by functions related to agricultural production loss control and profit maximization. By integrating theories concerning labor transfer incompleteness, learning-by-doing, and induced technological change, this research analyzes the effects of land leasing on this equilibrium. Empirical analysis utilizes micro-level data from the China Land Economic Survey (CLES) conducted between 2020 and 2022. The main findings are as follows: 1) Farmers who lease more land significantly reduce the amount of their pesticide inputs at the 1 % significance level. 2) Heterogeneity analyses show that: a) Farmers willing to reallocate land significantly reduced the amount of pesticide inputs after leasing land, while other farmers reduced it but not significantly. b) Farmers who are often involved in agricultural production during the growth period significantly reduced the amount of pesticide inputs after leasing land, while others did not reduce it. c) Regardless of whether they have suffered agricultural disasters in recent years, farmers significantly reduced the amount of pesticide inputs after leasing land, but farmers not affected by disasters performed better in reducing pesticide use. d) Households with clear land lease terms significantly reduced the amount of pesticide inputs, while those with unclear terms did not reduce it. 3) Mechanism analyses show that after leasing more land, farmers reduce the amount of pesticide inputs through three pathways: a) The incentive alignment in the training has been improved, and the resulting learning effect from agricultural training improves their capacity building of pesticide inputs. b) By ensuring higher accuracy and standards in pesticide spraying through socialized pesticide spraying services. c) By reducing pest pressure via diversified crop cultivation. These findings underscore the potential for land leasing to foster sustainable agricultural practices and provide valuable policy insights aimed at mitigating pesticide use while enhancing environmental management.