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Institut für Landwirtschaftliche Betriebslehre

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    The adoption of agricultural machinery and its economic impacts in China
    (2023) Quan, Xiuhao; Doluschitz, Reiner
    In modern agriculture, machinery plays an important role to substitute manual labor and to improve productivity and economic performance of farm households. Conventional agricultural machinery in crop production includes tractors, cultivators, tillers, combine harvesters, pumps, threshers, planters, fertilizer spreaders, seeders, etc. In recent years, as an innovative agricultural machinery, unmanned aerial vehicles (UAVs) have been adopted in precision agriculture for crop monitoring and crop spraying. However, factors influencing Chinese farmers’ adoption of agricultural machinery and the economic impacts of the adoption have not been adequately studied, especially regarding farm machinery in maize production and UAVs in precision agriculture. In addition, there is limited literature that systematically summarizes the use of UAVs in maize production. The development of UAV-based pattern management in Chinese agriculture and the prerequisites for adopting and implementing this approach remain unclear. By utilizing farm household data, qualitative methods, and econometric quantitative methods, this dissertation aims to (i) identify the factors influencing the adoption of farm machinery and UAVs by Chinese farmers; (ii) estimate the economic impacts of adopting farm machinery and UAVs; (iii) provide an overview of UAV applications in maize production; (iv) study the prerequisites for adopting and implementing UAV-based pattern management in Chinese agriculture; (v) outline and recommend policy instruments to promote the use of farm machinery and UAVs in China. The empirical results indicate that the determinants of farm machinery adoption and UAV adoption can be attributed by three major aspects: farmer characteristics (e.g., age, education level, and perceptions about agricultural machinery), farm characteristics (e.g., farm size, land fragmentation, and cooperative membership), and other external socio-economic factors (e.g., subsidies, technical assistance, and labor shortages). The adoption of farm machinery and UAVs has shown significantly positive economic effects. However, the effects vary among farm household types due to the heterogeneous farm characteristics and socio-economic conditions. Farm machinery use significantly increased maize yield by 0.216 tons/ha and improved labor productivity by 18.65%. Young, male, and better-educated farmers benefit more from adopting farm machinery, and farms located in plain regions with cooperative membership and rented land can gain higher economic benefits from machinery use. In addition, the impacts of farm machinery adoption on maize yield and labor productivity slightly decrease with farm size. The adoption of UAVs in pesticide application significantly increased revenue and reduced the time spent on pesticide application by approximately 434-488 USD/ha and 14.4-15.8 hours/ha, respectively. In terms of marginal revenue and marginal time spent on pesticide application, the optimal area for using UAVs in pesticide spraying is estimated to be 20 hectares of arable land, suggesting that small and medium-scale farmers are the main beneficiaries of UAV adoption. For the wide application of UAV-based pattern management in precision agriculture, certain socio-economic and technical prerequisites are necessary. These include farmers possessing adequate UAV-related capabilities, relatively large farm sizes, availability of UAV-related subsidies, and superior UAV performance. Balancing the pros and cons, the effective promotion of farm machinery in maize production and UAVs in precision agriculture requires the establishment of a comprehensive socio-economic institution. This institution should integrate strategies from both the public and private sectors such as the implementation of land consolidation, the establishment of agricultural machinery cooperatives for benefit-risk sharing, the provision of practical training and education on agricultural machinery, and subsidies for the purchase of agricultural machinery. Due to the heterogeneous effects of farm machinery adoption and UAV adoption, it is necessary to develop customized extension services tailored to various types of farm households to prevent inequity among farmers.