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Research on the Relationship between Price Mechanism and Short-Term Behavior in Chinese Farmland Trusteeships

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  • Yunxian Hou

    (College of Economics and Management, China Agricultural University, Beijing 100083, China)

  • Pengfei Chen

    (College of Economics and Management, China Agricultural University, Beijing 100083, China)

Abstract

After the policy of separating ownership rights, contract rights, and management rights to rural land, some Chinese farmers entrusted their land to agricultural social service providers. However, at present in land trusteeships, short-term behaviors exist, which are not good for the sustainable utilization of land. This article uses a dynamic game model to analyze the economic reasons for short-term behavior and to explore possible mechanisms. The study’s results showed that fluctuations in trusteeship prices encouraged farmers to sign low-price, long-term contracts or high-price, short-term contracts that allowed agricultural social service providers choose short-term behaviors. A variable-price system may avoid short-term contracts as a result of fluctuations in trusteeship prices, allowing both sides to build a long-term stable partnership, encouraging long-term investment in land. To ensure the sustainable utilization of land, it is suggested that both sides adopt a variable price system.

Suggested Citation

  • Yunxian Hou & Pengfei Chen, 2019. "Research on the Relationship between Price Mechanism and Short-Term Behavior in Chinese Farmland Trusteeships," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5708-:d:276937
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    References listed on IDEAS

    as
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    2. D'Amato, D. & Korhonen, J. & Toppinen, A., 2019. "Circular, Green, and Bio Economy: How Do Companies in Land-Use Intensive Sectors Align with Sustainability Concepts?," Ecological Economics, Elsevier, vol. 158(C), pages 116-133.
    3. Su, Baozhong & Li, Yuheng & Li, Lequn & Wang, Yue, 2018. "How does nonfarm employment stability influence farmers' farmland transfer decisions? Implications for China’s land use policy," Land Use Policy, Elsevier, vol. 74(C), pages 66-72.
    4. Weng, Yuwei & Chang, Shiyan & Cai, Wenjia & Wang, Can, 2019. "Exploring the impacts of biofuel expansion on land use change and food security based on a land explicit CGE model: A case study of China," Applied Energy, Elsevier, vol. 236(C), pages 514-525.
    5. Jia, R. & Lu, Q., 2018. "Land Transfer, Collective Action and the Implementation of Soil and Water Conservation Measures in the Loess Plateau of China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277124, International Association of Agricultural Economists.
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    Cited by:

    1. Jianying Xiao & Yan Song & Heyuan You, 2020. "Explaining Peasants’ Intention and Behavior of Farmland Trusteeship in China: Implications for Sustainable Agricultural Production," Sustainability, MDPI, vol. 12(14), pages 1-17, July.
    2. Xusen Zhu & Chaofu Wei & Fengtai Zhang & Junyi Zhang & Yuedong Xiao & Xingyu Yang, 2022. "Influencing Factors of Farmers’ Land Circulation in Mountainous Chongqing in China Based on A Multi-Class Logistic Model," Sustainability, MDPI, vol. 14(12), pages 1-16, June.

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