Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in China

The Grain-to-Fodder Crop Conversion Program (GCCP) in China mainly promotes the green and sustainable development of grain crops, economic crops, and silage crops by subsidizing livestock farms to encourage farmers to plant silage crops, such as corn silage and alfalfa silage. In this context, this...

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Main Authors: Shukun Wang, Changquan Liu, Lei Han, Tingting Li, Guolei Yang, Taofeng Chen
Format: Article
Language:English
Published: MDPI AG 2022-07-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/12/7/976
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author Shukun Wang
Changquan Liu
Lei Han
Tingting Li
Guolei Yang
Taofeng Chen
author_facet Shukun Wang
Changquan Liu
Lei Han
Tingting Li
Guolei Yang
Taofeng Chen
author_sort Shukun Wang
collection DOAJ
description The Grain-to-Fodder Crop Conversion Program (GCCP) in China mainly promotes the green and sustainable development of grain crops, economic crops, and silage crops by subsidizing livestock farms to encourage farmers to plant silage crops, such as corn silage and alfalfa silage. In this context, this study assesses the impact of planting silage crops on farm household income. Based on a survey of 495 households in Henan and Hebei Provinces, China, we first constructed a theoretical model of the program’s effect on farmers’ income, and then used an ordinary least squares (OLS) method to estimate the magnitude of the GCCP on farmers’ income. To identify endogeneity and further test the stability of the results, we adopted instrumental variable estimation, subsample estimation, and matching methods. The GCCP significantly increased smallholder farm income. Compared with growing corn grain, corn silage increased income by approximately CNY 101/mu. Meanwhile, corn silage reduced the capital input cost of farmers by 10.71% per mu and labor input by 26.6% per mu. Heterogeneity analysis revealed that farmers who plant corn silage on a large scale, closer to dairy farms, have higher incomes. Few scholars have empirically analyzed the impact of GCCP on farm household income from a micro-farm household perspective. This study enriches the empirical literature on the effects of the GCCP on farmers in China, which can help policymakers understand policy implementation.
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spelling doaj.art-dfcd3097a79e472a84bec9097a9f72492023-12-03T14:29:08ZengMDPI AGAgriculture2077-04722022-07-0112797610.3390/agriculture12070976Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in ChinaShukun Wang0Changquan Liu1Lei Han2Tingting Li3Guolei Yang4Taofeng Chen5Rural Development Institute, Chinese Academy of Social Sciences, Beijing 100732, ChinaRural Development Institute, Chinese Academy of Social Sciences, Beijing 100732, ChinaRural Development Institute, Chinese Academy of Social Sciences, Beijing 100732, ChinaRural Development Institute, Chinese Academy of Social Sciences, Beijing 100732, ChinaInstitute of Technology and Economy of Grain Industry, Academy of National Food and Strategic Reserves Administration, Beijing 100037, ChinaSchool of Economics, Nankai University, Tianjin 300071, ChinaThe Grain-to-Fodder Crop Conversion Program (GCCP) in China mainly promotes the green and sustainable development of grain crops, economic crops, and silage crops by subsidizing livestock farms to encourage farmers to plant silage crops, such as corn silage and alfalfa silage. In this context, this study assesses the impact of planting silage crops on farm household income. Based on a survey of 495 households in Henan and Hebei Provinces, China, we first constructed a theoretical model of the program’s effect on farmers’ income, and then used an ordinary least squares (OLS) method to estimate the magnitude of the GCCP on farmers’ income. To identify endogeneity and further test the stability of the results, we adopted instrumental variable estimation, subsample estimation, and matching methods. The GCCP significantly increased smallholder farm income. Compared with growing corn grain, corn silage increased income by approximately CNY 101/mu. Meanwhile, corn silage reduced the capital input cost of farmers by 10.71% per mu and labor input by 26.6% per mu. Heterogeneity analysis revealed that farmers who plant corn silage on a large scale, closer to dairy farms, have higher incomes. Few scholars have empirically analyzed the impact of GCCP on farm household income from a micro-farm household perspective. This study enriches the empirical literature on the effects of the GCCP on farmers in China, which can help policymakers understand policy implementation.https://www.mdpi.com/2077-0472/12/7/976Grain-to-Fodder Crop Conversion Programcorn silagefarmers’ incomeChina
spellingShingle Shukun Wang
Changquan Liu
Lei Han
Tingting Li
Guolei Yang
Taofeng Chen
Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in China
Agriculture
Grain-to-Fodder Crop Conversion Program
corn silage
farmers’ income
China
title Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in China
title_full Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in China
title_fullStr Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in China
title_full_unstemmed Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in China
title_short Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in China
title_sort corn grain or corn silage effects of the grain to fodder crop conversion program on farmers income in china
topic Grain-to-Fodder Crop Conversion Program
corn silage
farmers’ income
China
url https://www.mdpi.com/2077-0472/12/7/976
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