Land rental markets in China fail to defragment agricultural land.
Land fragmentation in rural China hinders agricultural productivity. Researchers studied if renting land helps consolidate fragmented plots. They used data from 2006 to 2016 and found that increasing land rental rates did not reduce the number of plots per household. However, when farmers grew cash crops or expected high rental income, they were more likely to merge their land through rentals. This suggests that informal land rental markets in China may not effectively reduce fragmentation.