The Impacts Of Migration And Part-time Farming On Small Household Farming Systems In Less Developed Regions

Rural-urban migration is inevitable in the developmental process of countries, being considered a precondition for agricultural development and economic transformation. Due to the unique land tenure policy of China, most Chinese small household farmers do not permanently leave their land, instead engaging in both on and off-farm work. Part-time farming is the most viable strategy available to households for maximizing family utility and is a common feature of migration in China.Based on the debates surrounding the impacts of migration and part-time farming on small farming systems, this study applies the theory of new economics of labour migration (NELM) and a household labour allocation model. It investigates agricultural productivity differences between full-time and part-time farms, and explores whether the remittances have been reinvested in agriculture to compensate for the impacts of out-migration. In addition, it predicts the long-term effects of household labour supplies and farm profits for different farm activities.Three townships, Shieshe, Quzi and Tianshui, were selected as case study areas in China’s less developed region of Qingyang prefecture, in Gansu province. These localities represent three typical farming systems of the region:The productive tableland farming system, the slopelands system, and the river valley system. In total,328households were interviewed to collect data for econometric analysis and simulation modelling. By comparing input-output variations between farmers who engage in farming exclusively and those who practice part-time farming, and simulating labour supply and farm profit for different farm types using the integrated Analysis Tool (IAT), this study concludes:1) In the Qingyang region, off-farm income is vital for small farmers to improve their livelihoods. In the short term, because of reduced labour, migration decreases wheat planting area and goat/sheep quantity of farms. The impact of losing farm labour on lower-return grain crop production is likely to be offset by the gain from investing in capital-intensive and profitable cash crop production, however.2) The impacts of migration on productivity are determined by whether the loss of family labour can be offset by remittance reinvestment on farm, and/or substituted by hired labour, which depend on labour market perfection level as well as homogeneity between family and hired labour. Internal wage differentials between off-farm and hired labour affect the labour demand and supply balance of households, in turn having an effect on farm productivity and reinvestment from remittances.3) Results from the simulation model showed that different farm activities variably demand family and hired labour. In the long term, when changing farm scale and/or production, different households therefore reach farm maximization with different crops and/or livestock. The farm income disparity is mainly due to the capacity of households to participate in the labour market. As a result, migration and part-time farming could have both positive and negative impacts on small householder farming systems.The NELM theory stresses the complexity of migration as an economic institution, the inter-relationship between determinants and impacts of migration, and the role of households in migration decision making. This study further interprets the complication from the labour market participation perspective of households. By integrating the labour allocation model into migration research, this study provides insights into how out-migration and migrant remittances relax or tighten market constraints on households in China’s less developed regions. It also combines a dynamic simulation model with static economic models to take account of uncertainty in migration study, which enriches the related knowledge base with a multiple research approaches and perspectives.