The Influence of New Agricultural Business Entities on the Economic Welfare of Farmer’s Families

Promoting the coordinated development of new agricultural business entities and small farmers is an important way to realize rural revitalization. It is undoubtedly of great significance to clarify the impact and its mechanism of new agricultural business entities on the economic welfare of farmers’ families. Based on the 2015 China Household Finance Survey (CHFS) data, this paper builds a theoretical analytical framework of “new agricultural business entities—non-agricultural employment and agricultural output—economic welfare of farmers’ family”. From the intermediary perspective of the non-agricultural employment and agricultural output, it empirically tests the impact of new agricultural business entities on the economic welfare of farmers’ families by combining the analysis methods of the benchmark regression and intermediary effect. The research shows that: (1) New agricultural business entities promote the improvement of the economic welfare of farmers’ families. The specific manifestation is that the existence of new agricultural business entities can not only increase the per capita annual income of farmers’ families, but also promote the per capita consumption expenditure of farmers’ families in the village. (2) Non-agricultural employment and agricultural output have a significant mediating effect in the impact of new agricultural business entities on the economic welfare of farmers’ families. (3) In addition to key variables, variables such as education, political status, and family status are also key factors affecting the economic welfare of farmers’ families. Finally, this paper puts forward some policy recommendations such as cultivating high-quality new agricultural business entities, strengthening farmers’ technical training, and optimizing rural residents’ policies.