More Grain-Oriented, but Limited Efficiency Gains? Smallholder Grain Production Under Farm-Scale Expansion in Rural China

Farm-scale expansion is widely viewed as a means of improving agricultural efficiency and linking smallholders to modern agriculture. Yet whether it improves the conditions under which smallholders participate in grain production remains unclear. Using panel data from the China Rural Revitalization Survey (CRRS) for 2020 and 2022, this study examines how village-level farm-scale expansion affects smallholder grain production. The results show that a 0.1 increase in village-level farm-scale expansion intensity is associated with a 0.81-percentage-point higher grain-sown share, but without corresponding improvements in production conditions. Farm-scale expansion is also associated with lower mechanization, a lower share of spending on purchased agricultural services, greater reliance on household-owned machinery, and higher family labor input. We describe this pattern as constrained grain-oriented adjustment: an increase in grain-sown share without corresponding improvements in mechanization or external service support, leaving production more dependent on household-based resources. Cooperative membership is associated with less severe mechanization and cost pressures. Overall, a higher grain-sown share under farm-scale expansion does not necessarily imply improved conditions for smallholder grain production. To promote inclusive agricultural modernization, policy efforts should focus not only on farm-scale operations, but also on strengthening smallholders’ access to mechanized, service-based, and organizational support.