Diversity of Agricultural Production and Food Consumption in Rural China: A Dual Analysis of Expenditure and Dietary Structure

As rural residents face the dual challenges of transforming dietary structures and addressing nutritional health burdens, establishing a resilient food consumption system for rural households has become an urgent priority. Drawing on micro-level data from the China Land Economic Survey (CLES) for the period 2020–2022, this study employs two-way fixed effects models, an instrumental variable (IV) approach, and seemingly unrelated regression (SUR) techniques to examine the impact of agricultural production diversity on household food expenditure and dietary diversity, as well as the underlying mechanisms. The results reveal that agricultural production diversity yields a significant and robust dual-dividend effect within household food consumption systems: it not only reduces per capital food expenditure but also enhances dietary diversity. Mechanism analysis indicates that diversified production increases food self-sufficiency, thereby reducing cash outflows for essential food items, while simultaneously improving dietary diversity through increased agricultural income and greater agricultural commercialization. Heterogeneity analysis further shows that these effects are more pronounced in villages lacking rural industrial support and among non-ageing households. These findings suggest that, in contexts where market mechanisms remain underdeveloped, the uncritical pursuit of absolute agricultural specialization may not align with the livelihood and nutritional needs of rural residents. From the perspective of fostering a healthy and resilient food system, China should adopt differentiated agricultural support policies, encourage rural households to maintain an appropriate degree of production diversity, and strengthen local agricultural market infrastructure.