A Study On The Impact Of Rural Industrial Integration On Farmers’ Income

The "20th National Congress" of the Communist Party further proposed the grand goal of realizing Chinese path to modernization.Promoting the integration of three industries in rural areas is of great significance to the reform of agricultural production mode,the improvement of modern agricultural development system,the promotion of the flow of urban and rural factors,the promotion of common prosperity of farmers,and the promotion of rural revitalization.At present,a series of risks and challenges are still faced to achieve stable agricultural production and increase,farmers’ income and rural stability and tranquility.The income gap between urban and rural residents in China has not been fundamentally narrowed.There are still structural constraints on farmers’ income growth.The weakest link and the most arduous task of common prosperity are still in rural areas.Therefore,according to the "Twentieth National Congress" of the Party,in order to realize the modernization of common prosperity for all people and change the unreasonable income structure of farmers,we must deeply promote the reform in key rural areas,change the agricultural development mode and activate various factor resources.Accelerating the integration of rural industries is an effective way at present.From the perspective of the development process of rural industries,the integration of agriculture,industry,and service industry is an inevitable choice.At a certain stage of industrial development,the industrial space can only be expanded through the integration and coordination between industries.With the improvement of productivity,it is required to activate idle rural labor resources through the integration of three industries.If the objective need for cross-border integration and development of the industrial and agricultural service industry is ignored,continuing to adopt the original traditional methods will further exacerbate the disadvantaged position of agriculture,trigger rural decline,and make it more difficult to improve the income status of farmers.Therefore,fully tapping into the endogenous power of agriculture,strengthening the fundamental position of agriculture,and exploring the path of integrated development of primary,secondary,and tertiary industries are of great significance for achieving agricultural efficiency improvement,farmers’ income increase,and rural prosperity..Currently,China’s rural integration of three industries has achieved significant results,such as the formation of diversified business entities;Derived interest linkage methods mainly based on order agriculture,stock cooperation,and service driven;According to local conditions,it has explored a variety of integration modes,such as agricultural internal integration,agricultural industry chain extension,agricultural multi-function expansion,and agricultural service industry integration;New forms of agriculture,new business models,and socialized service systems are also constantly emerging.However,overall,the integration of rural industries in China is in its early stages and there are still a series of problems.For example,the business entity of the integration of three industries is only initially formed and has a relatively small scale;The interest linkage mechanism between the integration of three industries is still relatively loose;The agricultural industry chain lacks deep processing capacity,has a simple structure,and the added value of products is still low;The multifunctional potential of agriculture has not yet been fully explored;The bottleneck of factors restricting the integration of three industries is still prominent,and lifting the constraints of factors such as land,funds,talent and technology is still a challenge in the field of integration..In view of the above problems that rural industrial integration affects farmers’ income,this paper first establishes a conceptual framework for understanding the rural industrial integration system,including its connotation,integration mode,status quo,level measurement,etc.Based on relevant theories such as industrial integration,income distribution,etc The three aspects of integration mode describe the current practice status and problems of rural industry integration affecting farmers’ income in China,and then analyze the structural dilemma of farmers’ business income,wage income,property income,and transfer income growth in China in combination with farmers’ income level,income structure,and income growth.In order to further clarify the impact of rural industrial integration on farmers’ income,so as to help farmers form a reasonable income structure and maintain the sustainable growth of income,this paper first summarizes the general significance of rural industrial integration model from China’s practical practice.This article comprehensively elaborates on the impact mechanism of rural industry integration on farmers’ various incomes from the perspective of four major models:internal integration of agricultural industry,extension of industrial chain,multi-functional expansion,and integration of agricultural service industry.Secondly,empirically,based on the inter provincial panel data of 30 provinces from 2007 to 2019,the comprehensive index and sub-indexes of China’s rural industrial integration development are systematically calculated,and the calculation results intuitively show that China’s rural industrial integration trend has been strengthened year by year and is characterized by a geographical gradient of "high in the east and low in the west".Thirdly,this paper empirically tests the income effect and regional heterogeneity of China’s rural industrial integration development composite index and sub-indexes of various integration models by using the dynamic panel model.From the regression results,it can be concluded that the integration of rural industries in China has a significant positive impact on the growth of farmers’ income,and this positive effect is mainly achieved through internal integration of agriculture,multi-functional expansion of agriculture,and integration of agricultural service industries to promote the growth of farmers’ operational income,property income,and transfer income.From the perspective of existing problems,the extension of the agricultural industry chain is not significant in promoting the growth of per capita net income of farmers,and the integration of rural industries has a significant negative effect on farmers’ wage income.The main reason why the integration of rural industries has a negative impact on farmers’ wage income is that the internal integration of agriculture and the extension of the agricultural industry chain in the process of rural industry integration reduce the number of farmers working in cities,so the impact on farmers’ wage income is not significant.Moreover,the multi-functional expansion of agriculture also has a significant negative effect on farmers’ wage income based on this reason.However,overall,the integration of rural industries has significantly improved the income structure of farmers,expanded the channels for wage income growth,and avoided the situation where farmers rely solely on urban migrant work to obtain wage income.Finally,this article proposes policy recommendations for the development of rural industrial integration from several aspects in response to the current problems revealed in the integration of rural industries.