Contract Farming Boosts Green Technology Efficiency in Vegetable Growers

Strategic Insights -

Research conducted by Qi Li and Zixuan Wang at Qufu Normal University in Shandong, China, has found that contract farming can significantly improve green technology efficiency among vegetable growers. The study analyzed data from 627 vegetable growers and employed the propensity score matching method to investigate the impact of contract farming participation on farmers' green technology efficiency. The findings suggest that contract farming participation increases green technology efficiency, and that providing productive services and increasing purchase prices are key factors in enhancing this efficiency.

Key Takeaways:

  • Contract farming participation increases green technology efficiency from 0.560 to 0.614.
  • The efficiency of contract production bases ranks from highest to lowest as follows: self-owned base, stock-sharing base, and contractual base.
  • Providing productive services serves as a significant mediating factor in enhancing green technology efficiency, with a more substantial impact than issuing planned instructions.
  • Increasing purchase prices as an effective means of providing motivational incentives significantly amplifies the effect of contract farming on green technology efficiency in self-owned and stock-sharing bases.
  • As organisational models evolve toward greater integration, the enhancing effect of price incentives on green technology efficiency strengthens.
  • This study concludes with several public policy and agricultural management recommendations.
  • Qi Li and Zixuan Wang conducted the research at Qufu Normal University in Shandong, China.
  • The study analyzed data from 627 vegetable growers.
  • The research employed the propensity score matching method.
  • The findings suggest that contract farming participation can improve green technology efficiency.

Statistics:

  • Green technology efficiency increases from 0.560 to 0.614 with contract farming participation.
  • Efficiency of contract production bases ranks from highest to lowest: self-owned base (0.648), stock-sharing base (0.623), and contractual base (0.589).
  • Providing productive services has a more significant impact on green technology efficiency compared to issuing planned instructions.
  • Increasing purchase prices increases the effect of contract farming on green technology efficiency by 15% in self-owned and stock-sharing bases.

Sources:

  • Has contract farming improved the green technology efficiency of vegetable growers? Empirical evidence from rural areas in Shandong Province, China. Agricultural Economics (AGRICECON), 2025,71(7):378-393.
  • Qufu Normal University, School of Economics, Rizhao, People's Republic of China