Does contract farming promote farmers’ organic agriculture adoption? Counterfactual analysis based on survey data of western Hunan farmers

LU Yu; XIANG Ping’an; YU Liang; WANG Zilong

doi:10.12357/cjea.20230080

Volume 31 Issue 10

Oct. 2023

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Chinese Journal of Eco-Agriculture > 2023 > 31(10): 1683-1694. > DOI: 10.12357/cjea.20230080 CSTR: 32371.14.cjea.20230080

LU Y, XIANG P A, YU L, WANG Z L. Does contract farming promote farmers’ organic agriculture adoption?−Counterfactual analysis based on survey data of western Hunan farmers[J]. Chinese Journal of Eco-Agriculture, 2023, 31(10): 1683−1694. DOI: 10.12357/cjea.20230080

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Does contract farming promote farmers’ organic agriculture adoption?Counterfactual analysis based on survey data of western Hunan farmers

LU Yu^{1, 2,},
XIANG Ping’an^2, ,,
YU Liang³,
WANG Zilong⁴

1.
Business School, Hunan Women’s University, Changsha 410004, China
2.
Business School, Hunan Agricultural University, Changsha 410028, China
3.
Hunan First Normal University, Changsha 410205, China
4.
Chinese Academy of Social Science, Beijing 100732, China

Funds: This study was supported by the Scientific Research Project of the Education Department of Hunan Province (22B0932), the Natural Science Foundation of Hunan Province (2021JJ30369, 2020JJ5265) and the Science and Technology Innovation Project of Changsha (kh2302049).

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Corresponding author:
XIANG Ping’an, E-mail: xpa830@126.com
Received Date: February 16, 2023
Revised Date: June 04, 2023
Accepted Date: June 04, 2023
Available Online: July 12, 2023

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Contract farming is an innovative method for developing organic agriculture in China. Clarifying whether contract farming promotes farmers’ adoption of organic agriculture can provide a decision-making basis for promoting organic agriculture in China. This study applied the propensity score matching method to construct a counterfactual analysis framework to test the treatment effects and heterogeneity of contract farming on farmers’ organic agriculture adoption based on farm-level survey data of 450 farmers from Baojing, Lanshan, Guzhang, Yongshun and Huayuan counties of Hunan Province. Our empirical results showed that contract farming plays a significant role in promoting farmers’ adoption of organic agriculture. The average treatment effect estimated based on five score matching methods showed that compared with farmers who did not participate in contract farming, the average treatment effect of farmers who participated in contract agriculture was 0.45−0.54. Moreover, for farmers from national organic product demonstration areas, with low awareness of organic agriculture, risk-averse farmers, and small-scale and part-time farmers, the average treatment effect of contract farming on organic agriculture adoption was more notable. Therefore, the government should encourage farmers to participate in contract farming. Furthermore, considering the heterogeneity of the treatment effect of contract farming on farmers’ adoption of organic agriculture, the government should develop contract farming modes that are suitable for farmers with different endowment constraints, risk attitudes, and organic agriculture cognition, and strengthen the establishment of national organic product certification demonstration.
- Contract farming,
- Treatment effect,
- Propensity score matching (PSM),
- Organic agriculture adoption,
- Farmers

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Does contract farming promote farmers’ organic agriculture adoption?Counterfactual analysis based on survey data of western Hunan farmers

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