Impact of Wheat Price Changes on Farmers’ Willingness to Participate in Fallow

Hao CHENG; Hualin XIE

doi:10.5814/j.issn.1674-764x.2020.06.006

Journals >Journal of Resources and Ecology >Volume 11 >Issue 6 >Page 589 > Article

Journal of Resources and Ecology
Vol. 11, Issue 6, 589 (2020)

Impact of Wheat Price Changes on Farmers’ Willingness to Participate in Fallow

Hao CHENG¹ and Hualin XIE^2,*

Author Affiliations

¹School of Public Finance and Public Administration, Jiangxi University of Finance and Economics, Nanchang 330013, China

²Institute of Ecological Civilization, Jiangxi University of Finance and Economics, Nanchang 330013, China

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DOI: 10.5814/j.issn.1674-764x.2020.06.006 Cite this Article

Hao CHENG, Hualin XIE. Impact of Wheat Price Changes on Farmers’ Willingness to Participate in Fallow[J]. Journal of Resources and Ecology, 2020, 11(6): 589 Copy Citation Text

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Fig. 1. The mechanism of wheat price change affecting fallow willingness

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Fig. 2. Cumulative percentage of net income per mu

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Fig. 3. Cumulative percentage of net income per mu under wheat price changes

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Farmer feature	Levels	Percentage (%)
Gender	Male	80.1
Gender	Female	19.9
Age	35 years old or below	4.1
	36-45 years old	8.7
	46-55 years old	31.1
	56-65 years old	38.8
	66 years old or older	17.3
Education level	Uneducated	8.2
	Primary school	33.2
	Junior high school	48.5
	High school, Secondary school, Vocational college	9.7
	College or above	0.1
Does the family have an off-farm income?	Yes	28.6
Does the family have an off-farm income?	No	71.4
The expectation of fallow compensation	< 400 yuan mu^-1	24.2
	400-500 yuan mu^-1	26.6
	500-600 yuan mu^-1	23.4
	600-700 yuan mu^-1	18.7
	> 700 yuan mu^-1	7.1

Table 1.

Farmers’ features and their expectations of fallow compensation

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Farmer feature	Levels	Satisfied with the current compensation (%)	Unsatisfied with the current compensation (%)
Gender	Male	55.45	44.55
Gender	Female	28.00	72.00
Age	35 years old or below	60.00	40.00
	36-45 years old	63.64	36.36
	46-55 years old	53.85	46.15
	56-65 years old	30.61	69.39
	66 years old or older	77.27	22.73
Education level	Uneducated	60.00	40.00
	Primary school	32.31	67.69
	Junior high school	57.38	42.62
	High school, secondary school, vocational college	58.33	41.67
	College or above	100.00	0.00
Does the family have an off-farm income?	Yes	63.89	36.11
Does the family have an off-farm income?	No	44.44	55.56

Table 2.

The satisfaction of fallow compensation as related to different farmer features

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Variables	β	S.E.	Sig.
ln (sown area)	0.999	0.075	0.000***
ln (laborinput)	0.033	0.019	0.019*
ln (capital input)	0.030	0.070	0.038*
Age	0.015	0.557	0.579
Educational level	-0.13	-0.497	0.620
Constant	7.153	0.473	0.000
R²	0.935

Table 3.

The estimation of the Cobb-Douglas production function

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Classification	Farmers’ expected compensation	Planting income	Gap
Classification	Number of households	Number of households	Gap
< 400 yuan	30	32	2
400-500 yuan	33	29	-4
500-600 yuan	29	27	-2
600-700 yuan	24	22	-2
> 700 yuan	8	14	6
Total	124	124	0

Table 4.

Comparison of farmers’ expected compensation and actual income per mu

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Winter wheat price(yuan per 500 g)	Price change(yuan per 500 g)	Shadow wage(yuan per day)	Average net income per mu(yuan)
0.81	-0.3	12.07	229.16
0.91	-0.2	12.97	322.38
1.01	-0.1	13.87	415.61
1.11	0	15.07	507.30
1.21	0.1	15.82	601.03
1.31	0.2	17.05	692.08
1.41	0.3	17.80	786.31

Table 5.

The effect of wheat price changes on planting income per mu

Hao CHENG, Hualin XIE. Impact of Wheat Price Changes on Farmers’ Willingness to Participate in Fallow[J]. Journal of Resources and Ecology, 2020, 11(6): 589

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