As You Sow, So Shall You Reap: Agricultural Outsourcing and Land Productivity in China

Agricultural socialized service has expanded rapidly within China’s smallholder farming system, yet evidence on their relationship with land productivity remains limited. Using three waves of data from the China Land Economic Survey between 2020 and 2022, this study examines the association between agricultural production outsourcing and land productivity. The results show that outsourcing participation is associated with 4% to 5% higher land productivity, with the positive association remaining broadly robust across alternative estimators and identification strategies. Heterogeneity analysis indicates that this association is stronger on land with better soil fertility, among older-generation farmers, and among small-scale farmers. Further analysis suggests that outsourcing participation is associated with higher fertilizer application intensity, greater mechanization, and lower household agricultural labor input, providing evidence on potential channels linking outsourcing to land productivity. These findings highlight the potential role of specialized agricultural services in relaxing production constraints faced by smallholders, while also suggesting that their productivity implications depend on household and land characteristics.