Analysis of the impact of farm machinery outsourcing services on farmers’ cropping structure and grain production: an empirical evidence from Henan Province, China

Abstract

IntroductionThe impact of farm machinery outsourcing services (FMOS) on grain production has been extensively studied in the literature. However, whether FMOS would adjust cropping structures and ensure food security is little known. To address this research gap, we analyzed the impact of FMOS on the cropping structure adjustment and grain production of farmers.MethodsWe estimate the impact of FMOS on grain production by using data collected from a survey of 3,863 wheat farmers in China. We employ the Extended Regression Model (ERM) to address selectivity bias.Results and discussionThe empirical results show that FMOS can adjust the cropping structure and increase the proportion of household food cultivation. Among all segments of FMOS, fertilizer application services drive the increase in grain acreage more significantly. We also find that large-scale households prefer to self-purchase farm machinery rather than FMOS, leading to an insignificant impact of FMOS on cropping structure. Therefore, in the process of promoting the development of FMOS, we should focus on the coordinated development of various types of FMOS, strengthen the popularization and application of fertilization services, and formulate a differentiated subsidy policy for heterogeneous farmers in terms of scale to better play the role of agricultural machinery in promoting grain production.