Psychological Poverty Traps in Rural Farm Households: Implications for Sustainable Agricultural Development and Rural Revitalization in China

In the context of sustainable agricultural development and rural revitalization in China, understanding and addressing psychological poverty traps among rural farm households is crucial. The poverty mindset represents a crucial factor affecting rural poverty. This study focuses on two key questions: first, whether and how material poverty influences the poverty mindset; and second, whether this psychological state affects economic behavior, potentially intensifying material poverty. Using data from the China Family Panel Studies (CFPS) spanning 2014–2018, the data collection employed a multi-stage stratified sampling approach. Multiple methods, including questionnaire surveys and in-depth interviews, were utilized to gather information. Through matching and merging processes based on personal questionnaire IDs, a total of 30,143 observations were obtained over a three-year period. We employ Causal Mediation Analysis (CMA) to examine the micro-level mechanisms between material and psychological poverty among rural farm households. Our findings reveal three key insights. First, material poverty significantly reduces aspiration levels and behavioral capabilities of rural farm households, with impoverished groups scoring approximately 10% lower than non-poor groups. Second, this negative impact operates through two primary channels: stigma effects (self-stigmatization 11.29%, social stigma 4.71%) and psychological resource depletion (negative emotions 1.5%, psychological stress 1.27%). Third, psychological poverty reinforces material poverty through aspiration failure (72.3%) and capability deficiency (75.68%), creating a self-perpetuating “psychological poverty trap” that particularly affects agricultural production efficiency. These findings suggest that sustainable agricultural development requires addressing both material and psychological dimensions of rural poverty. Policy recommendations include strengthening psychological support for farm households, enhancing agricultural capacity building, mitigating stigma effects in rural communities, and reconstructing psychological resources for sustainable development. This integrated approach can help break psychological poverty traps, improve agricultural productivity, and support rural revitalization in China.