Impact Evaluation of Farming by Nonagricultural Business Organizations in Special Agricultural Zones

Abstract

This study evaluates the impact of special agricultural zones for farmland leases on regional agriculture using the difference-indifferences method with propensity score matching. The special agricultural zones were introduced in 2002 to allow nonagricultural business organizations to enter agricultural production with an aim to alleviate the increasing abandonment of cultivated lands and boost the number of farm households. The results show that the entry of nonagricultural business organizations has statistically significant effects on altering the recent trend in abandoned cultivated lands and the number of farm households at the municipal level.