How Does the Development of Forestry Service Outsourcing Organizations Affect Households’ Forestland Leasing?

The fragmented nature of Chinese households’ forestland hinders the realization of economies of scale in forestry production. Understanding the role of forestry service outsourcing organizations in mitigating this fragmentation provides a critical foundation for the exploration of pathways to scaled forestry management. Based on tracking data from 500 households across 10 counties in Fujian Province between 2013 and 2018, this study examines an unbalanced panel containing six periods and 2780 valid observations. It constructs a panel Logit model to examine the influence of forestry service outsourcing organizations on the likelihood of forestland transfer by households, and it employs a panel Tobit model to analyze the relationship between these organizations and the scale of forestland transferred. To capture potential heterogeneity, the analysis incorporates households’ part-time status and the forestland terrain conditions. The results indicate that the duration of establishment of county-level forestry project teams and forestry companies in households’ regions significantly reduces the tendency of households to lease out their forestland, especially for those in plain and hilly regions and part-time forestry producers. Furthermore, the longer the establishment history of township-level forestry project teams, the more inclined households are to retain their family forestland management rights. Our study demonstrates that, when specialized forestry service outsourcing organizations emerge in the market, households are less likely to lease out their forestland, thereby retaining management rights, avoiding the risk of forestland loss, and reducing forestland abandonment. As forestry service outsourcing organizations continue to develop and expand—with improvements in service levels and production efficiency—forestry production is gradually transitioning toward a new stage of service-oriented scale operations.