Exploring Green Production Methods for Grain: Evidence from Farmland Scale and Agricultural Service Scale Operation in China

Guoying Han^1*Tongshan Liu^2*

• ¹College of Economics and Managerment, Nanjing Forestry University, Nanjing, Liaoning Province, China
• ²Yunnan Agricultural University, Kunming, Yunnan, China

To address the prominent issues caused by the excessive use of agricultural chemicals-such as farmland degradation, heightened ecological risks, and health hazards-and to promote green agricultural production, this study focuses on two major pathways of modern agricultural development: service-based scale operation supported by Agricultural Productive Services (APS) and farmland scale operation. It systematically examines their respective impacts on the reduction of agricultural chemical inputs. This study employs panel data from China's Rural Fixed Observation Points and utilizes a system of simultaneous equations, incorporating a control function approach to address potential endogeneity, to empirically examine the impacts of APS and farmland operation scale on agrochemical input. The results show that: (1) APS significantly reduce the intensity of CFP application in grain production. Specifically, a 1% increase in the use of APS was associated with an average decrease of 0.93 CNY per mu in fertilizer cost and 0.07 CNY per mu in pesticide cost. (2) Moderate-scale farmland operation significantly and positively contributes to the reduction in the use of agrochemicals. (3) Cropspecific analysis reveals that both APS and moderate-scale farming can reduce pesticide use for wheat, rice, and maize. In terms of fertilizer reduction, APS is more effective for wheat, while scale expansion is more effective for maize. Both approaches contribute to fertilizer reduction in rice cultivation. These findings provide empirical evidence for promoting APS and appropriate-scale farming as effective means to reduce agrochemical use and support sustainable agricultural development.