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Agricultural Machinery Use and Maize Yield in China

This study uses an unconditional quantile regression model and survey data from China to examine the potential heterogeneous effects of agricultural machinery use on maize yield. Crop production in developing and underdeveloped countries is increasingly dependent on the use of agricultural machinery. However, it remains unclear whether low-yield and high-yield farms benefit equally from the use of agricultural machinery. A control function approach is used to address the issue of selection bias associated with agricultural machinery use. Empirical results show that the use of farm equipment significantly increases maize yields in all selected quantiles. Less productive farmers tend to benefit more from the use of agricultural machinery than more productive farmers. The use of agricultural machinery reduces the variability and diversity of maize yields. Agricultural machinery has long played a key role in increasing soil productivity and promoting sustainable agricultural practices such as conservation agriculture and intensive manufacturing. Agricultural machinery has the potential to replace traditional manual labor and equipment such as plow wheels and hand plows, saving production costs and reducing labor. Therefore, understanding the relationship between agricultural machinery use and agricultural performance is of great help to researchers and policy makers. All over the world, agricultural machinery is an integral component of agricultural production. Mechanization is considered a driving force for agricultural transformation. Most agricultural activities in developed countries are accomplished by agricultural machinery, but in other regions such as sub-Saharan Africa, Latin America and South Asia, agricultural machinery is largely negligible in terms of total cultivated area. Only 10% of agricultural land is cultivated by tractors in sub-Saharan Africa, compared to 35% in South Asia and 50% in Latin America (Benin 2015). A study by Takeshima et al. (2017) also show that less than 8% of his farms in Nepal use mechanized farming in hills and mountains. Kienzle (2013) reviewed the status and progress of agricultural mechanization for rural development around the world and concluded that without agricultural machinery, farmers would struggle to move out of subsistence production. This is true because agricultural mechanization allows farmers to increase agricultural productivity through intensification of production and expansion of land. In China, the government has made efforts to promote the use of agricultural machinery by smallholder farmers through policies and financial instruments. The promulgation of the Agricultural Mechanization Promotion Law in 2004 is one of them. Similar to other developing countries such as Ghana (Benin 2015), the Chinese government also provides subsidies to increase the adoption rate of agricultural machinery. The amount of agricultural machinery subsidies by the Chinese government surged from 70 million yuan in 2004 to 17.4 billion yuan in 2018 (NBSC 2019). 640.3 million kilowatts in 2004 to 1.04 billion kilowatts in 2018. There are three main ways to purchase agricultural machinery in China: purchasing machinery services, purchasing and leasing machinery. A well-developed agricultural machinery service market has provided small farmers with easy access to agricultural machinery in agricultural production. Various agricultural machinery (seeding, pesticide spraying, fertilization, harvesting, transportation, threshing, drying, etc.) Most of the above studies focus on uniform production effects from the use of agricultural machinery. However, agricultural machinery use may have different impacts on crop yields for low-yield and high-yield farms due to differences in household and farm characteristics and socioeconomic status. Agricultural machinery from heterogeneous rural households the uneven impact of the use of If the use of agricultural machinery positively impacts yields only on the most productive farms, programs that merely promote agricultural mechanization may strike a balance between improving agricultural productivity and country house welfare. is not a fair policy option. Inappropriate pro-mechanization policies have serious inequitable consequences (FAO 2018). Therefore, understanding the heterogeneous effects of agricultural machinery use on yields has important policy implications. However, it is still unclear whether and to what extent agricultural machinery use affects yields differently in farms with different levels of productivity. Therefore, the main aim of this study is to investigate the heterogeneous effects of agricultural machinery use on yield. We have three contributions he intends to make to the book. First, we use an unconditional quantile regression model to reveal the heterogeneous effects of agricultural machinery use on maize yield. This contrasts with previous studies that found a homogenous relationship between agricultural machinery use and crop production. We then consider the issue of selection bias in agricultural machinery use and explore it using the control function approach proposed by Wooldridge (2015). Farmers decide for themselves whether to use machinery on their farms (self-selection). Their decision to use agricultural machinery can be influenced by both observed factors (age, education, farm size, etc.) and unobserved factors (innate ability, motivation, risk appetite, etc.) there is. This fact leads to sample selection bias, which cannot be ruled out. Third, we add to the literature by investigating whether agricultural machinery use is associated with yield variability and yield variability between maize farms. This is measured by the sampling variance and the Gini coefficient respectively. Previous research has explored income inequality and inequality, consumption, economic development (Gibson 2018), and health outcomes. Our economic analysis uses household survey data collected from smallholder corn farmers in China. Globally, China is the second largest producer of corn, second only to the United States in terms of production (FAOSTAT). Over the past three decades, China's total maize production has increased dramatically from her 62.6 million tons in 1980 to her 257.17 million tons in 2018 (NBSC 2019). China's corn market transitions from oversupply to undersupply despite significant growth in total maize production and rapid economic growth and increased demand for maize. In 2018, China's corn imports reached his 3.52 million tons. It is mainly used to supplement domestic maize availability for human consumption, animal feed, and industrial production. The short supply of corn in China may be partially due to low corn production. In recent years, China's corn production has been significantly lower than other major corn producing countries such as the United States and Canada.

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