Grain subsidy, off-farm labor supply and farmland leasing: Evidence from China

Baoling Zou, Ashok K. Mishra, Biliang Luo

Research output: Contribution to journalArticlepeer-review


This study investigates the impact of direct grain subsidy and off-farm labor supply on farmland leasing options in China, using multinomial logit and farm household-level data. Results show that the grain subsidy has a significant and positive effect on both leasing out and leasing in farmland in rural China. Rural households with an increased share of full-time off-farm workers are more likely to lease out farmland and less likely to lease it in. Older operators and households with less educational attainment are less likely to lease in farmland. Large farms are likely to both lease out and lease in farmland. Finally, the Land Shareholding Cooperative System (LSCS) plays an important role in China's farmland leasing market.

Original languageEnglish (US)
JournalChina Economic Review
StatePublished - Jan 1 2019


  • China
  • Farmland leasing
  • Grain subsidy
  • Land shareholding cooperative system (LSCS)
  • Off-farm labor supply

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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