Can the application of digital production technology promote large-scale farming? Evidence from Chinese rice farmers

Large-scale farming is crucial to improving agricultural competitiveness and increasing farmers’ income. With the rapid development of the digital economy, applying digital technology in agricultural production is regarded as a new source of enhancing agricultural competitiveness. However, few studies have discussed the potential link between the application of digital production technology and large-scale farming from a micro-perspective. Based on survey data from rice farmers in Jiangsu Province, China, in 2023, this study uses an endogenous switching model to analyze the impact of digital production technology on large-scale farming and its potential mechanisms. The results show that applying digital production technology significantly promotes large-scale farming at both the farm and plot levels. These findings remain robust after a series of robustness tests, including changing estimation methods and redefining dependent variables. Mechanism analysis reveals that digital production technology promotes large-scale farming through three pathways: reducing labor costs, mitigating disaster risks, and enhancing managerial capabilities. The heterogeneity analysis indicates that the impact of digital production technology on large-scale farming is more pronounced among farmers with high digital literacy or those in regions with advanced digital finance. This study emphasizes that promoting digital production technology is feasible for achieving large-scale farming.