Farmland leasing boosts productivity, narrows urban-rural income gap in China.
Farmland leasing in China can help increase agricultural productivity and reduce income gaps between urban and rural areas. By analyzing data from rice farmers in Jiangsu, researchers found that efficient reallocation of resources could boost total productivity by 23.6%. They also discovered that a 1% increase in farmland leasing leads to a 1.087% gain in productivity and a 0.267% reduction in misallocation. These effects are more significant after the Three Rights Separation reform. The benefits of farmland leasing on productivity are mainly seen in Southern Jiangsu due to concentrated farmland.