Farmland Rental: The Impacts of Household Demographics and Livelihood Strategies in China

In recent decades, there has been a rising global trend of farmland rental. Previous studies have explored the impacts of individual and household sociodemographics on farmland rental, but a holistic understanding of farmland rental in association with households' demographics and livelihood strategies has not been achieved. Using data from the China Family Panel Studies 2012-2016, we investigated the association of farmland rental with household demographics and livelihood strategies in rural China. The results suggest that farmers in rural China tend to keep a balance between landholding and household needs, a finding that not only supports the labor-consumer balance theory, but also extends its application to a capitalized and increasingly mobile society. Larger and/or married-couple households were less likely to rent out their farmland, and the household decision-maker's education level was positively associated with the probability of renting out farmland. The household decision-maker's age was negatively associated with farmland rental up to age 34, after which it has a positive effect, demonstrating a non-linear, U-shaped relationship. Livelihood strategies, including non-farm employment and migration, were positively associated with farmland rental, whereas agricultural income showed a negative effect. This study extends the understanding of factors influencing farmland rental in areas where increasing migration could reshape farmland disposal, a common scenario in contemporary China and many developing countries.