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Poster P-2-5-11: The Impact of Water Price Reform on Planting Structure from the Perspective of Farmer Differentiation

XVIII IWRA World Water Congress Beijing China 2023
Sub-theme 2: Promoting Water Efficiency, Productivity and Services
Author(s): Xinyue Zhang, Bo Lei, Minghao Bai
Poster: PDF

Abstract

The reform of agricultural water price policy significantly affects the planting structure. In the regression with the proportion of sown area of low water consumption crops as the dependent variable, the estimated coefficient of water price policy reform is significantly positive. This means that compared with the unified water price policy, the water price policy reform has increased the proportion of low water consumption crops sown area of farmers.

In the adjustment of different planting structures, the heterogeneity of farmers' differentiation and the heterogeneity of business scale also show significant differences. High and low part-time farmers tend to reduce the planting area of high water-consuming crops in the face of water price policy reform. However, farmers in the low part-time group tend to shift to expanding the sown area of corn and cotton. The high part-time group of farmers only expanded the planting area of corn. The heterogeneity of operating scale shows the same characteristics. Small-scale farmers are more likely to increase the planting area of corn and cotton, while largescale farmers are more inclined to increase the planting area of corn.

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