The impact of agricultural socialized services on grain farmers’ agricultural eco‑economic efficiency

Abstract

Developing agricultural socialized services (ASS) while promoting green and low-carbon grain production is an important component of agricultural modernization in China. Although previous studies have examined the effects of ASS on agricultural productivity, farm income, and individual input use, it remains unclear whether ASS improve household-level agricultural eco-economic efficiency (AEE), which jointly accounts for economic output, resource use, and environmental costs. Evidence is also limited regarding the factor-allocation channels and production conditions underlying this relationship. Using survey data from 5,992 grain-producing households across 14 provinces in China, this study examines household-level AEE and examines its relationship with ASS adoption using OLS and an instrumental-variable two-stage least squares specification. The results indicate that: (1) ASS adoption is positively associated with grain farmers’ AEE; (2) the estimated relationship varies across farm sizes and crop types, with a more pronounced positive estimate among farmers operating at least 2 ha, but a negative estimate among wheat-growing households; and (3) ASS adoption is associated with a lower share of fertilizer and pesticide expenditure in total variable production costs, whereas no statistically significant labor-reallocation channel is identified. These findings suggest that ASS policies should improve service quality, reduce smallholders’ barriers to service access, develop crop- and production-stage-specific service packages, and promote more precise management of agricultural inputs.