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Determinants and impacts of outsourcing pest and disease management

Author

Listed:
  • Dingqiang Sun
  • Michael Rickaille
  • Zhigang Xu

Abstract

Purpose - The purpose of this paper is to investigate the determinants and impacts of outsourcing pest and disease management on rice production in China. Design/methodology/approach - A multinomial endogenous treatment effects model which accounts for selection bias was used. Findings - The results show that outsourcing decisions are driven mainly by the size of the farm, the age of the household head and other household characteristics. Further, the authors find that outsourcing labor for pest and disease control has no significant effect on pest control cost and rice yields, though it reduces the number of pesticide applications. Conversely, outsourcing of professional services can increase rice yields by 4.1 percent, and at the same time it increases pest and disease control costs by 50.6 percent. However, it is found that outsourcing of professional services exerts no significant impact on the farm profitability. Practical implications - This study suggests that households with large farm size are more likely to outsource professional services and, therefore, service providers and governments should target those farmers to provide incentives and create greater awareness of the benefits from the outsourcing of professional services. Moreover, the increase in yields along with the government subsidy justifies the outsourcing of professional services by farmers. However, service providers and policy makers have a lot of leeway to come up with cheaper methods for pest and disease management in rice production. Originality/value - This study is the first attempt to simultaneously evaluate the determinants and impacts of outsourcing pest and disease management on rice production in China.

Suggested Citation

  • Dingqiang Sun & Michael Rickaille & Zhigang Xu, 2018. "Determinants and impacts of outsourcing pest and disease management," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(3), pages 443-461, August.
  • Handle: RePEc:eme:caerpp:caer-01-2017-0011
    DOI: 10.1108/CAER-01-2017-0011
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    Citations

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    Cited by:

    1. Chaozhu Li & Xiaoliang Li & Wei Jia, 2022. "Non-Farm Employment Experience, Risk Preferences, and Low-Carbon Agricultural Technology Adoption: Evidence from 1843 Grain Farmers in 14 Provinces in China," Agriculture, MDPI, vol. 13(1), pages 1-16, December.
    2. Cai, Yi & Sun, Yucheng & Qi, Wene & Yi, Famin, 2022. "Impact of smartphone use on production outsourcing: evidence from litchi farming in southern China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(4), September.
    3. Yingyu Zhu & Junmiao Deng & Menghan Wang & Yuanchang Tan & Wei Yao & Yan Zhang, 2022. "Can Agricultural Productive Services Promote Agricultural Environmental Efficiency in China?," IJERPH, MDPI, vol. 19(15), pages 1-18, July.
    4. Ruining Li & Yanli Yu, 2022. "Impacts of Green Production Behaviors on the Income Effect of Rice Farmers from the Perspective of Outsourcing Services: Evidence from the Rice Region in Northwest China," Agriculture, MDPI, vol. 12(10), pages 1-27, October.
    5. Shengyang Sun & Chao Zhang & Ruifa Hu & Jian Liu, 2023. "Do Pesticide Retailers’ Recommendations Aggravate Pesticide Overuse? Evidence from Rural China," Agriculture, MDPI, vol. 13(7), pages 1-16, June.
    6. Xue Qu & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2022. "Do Farming Scale and Mechanization Affect Moral Hazard in Rice Harvest Outsourcing Service in China?," Agriculture, MDPI, vol. 12(8), pages 1-12, August.
    7. Yubin Wang & Jie Li & Pengfei Cheng, 2023. "Multiple Subject Behavior in Pest and Disease Control Outsourcing from the Perspective of Government Intervention: Based on Evolutionary Game and Simulation Analysis," Agriculture, MDPI, vol. 13(6), pages 1-21, June.
    8. Juan Ai & Lun Hu & Shuhua Xia & Hongling Xiang & Zhaojiu Chen, 2023. "Analysis of Factors Influencing the Adoption Behavior of Agricultural Productive Services Based on Logistic—ISM Model: A Case Study of Rice Farmers in Jiangxi Province, China," Agriculture, MDPI, vol. 13(1), pages 1-16, January.
    9. Meng Qu & Kai Zhao & Renhui Zhang & Yuan Gao & Jing Wang, 2022. "Divergence between Willingness and Behavior of Farmers to Purchase Socialized Agricultural Services: From a Heterogeneity Perspective of Land Scale," Land, MDPI, vol. 11(8), pages 1-21, July.
    10. Junying Lin & Songqing Jin & Hongdong Guo, 2023. "Do outsourcing services provided by agricultural cooperatives affect technical efficiency? Insights from tobacco farmers in China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 781-804, September.
    11. Qiangqiang Zhang & Beibei Yan & Xuexi Huo, 2018. "What Are the Effects of Participation in Production Outsourcing? Evidence from Chinese Apple Farmers," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    12. Sun, Shengyang & Zhang, Chao & Hu, Ruifa & Liu, Jian, 2023. "Do pesticide retailers’ recommendations aggravate pesticide overuse? Evidence from rural China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(7), pages 1-1.

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