Study on the Impact of Land Transfer on Farmers’ Welfare: Theoretical and Empirical Evidence from China

The transfer of agricultural land has significant effects on farmers’ livelihoods and welfare. This study aims to explore the utility and obstacles of rural land transfer. The research found that in the process of agricultural transformation in developing countries, rural land transfer played a positive role in improving farmers’ welfare. Rural land transfer enables land lessors to obtain physical rent or implicit rent, which increases household income or enhances relationships with relatives and neighbors, generating a positive impact on farmers’ welfare. Land transfer was a comprehensive decision-making of households based on the optimal allocation of factor resources such as land, labor, and capital. Risks associated with land transfer and social security arrangements after transferring land rights have emerged as prominent obstacles. These factors tend to induce anxiety among land-leasing households regarding the livelihood risks their families might face post-transfer, thus making them hesitant and reluctant to engage in land transfer due to lingering concerns over both immediate and long-term interests. The welfare-enhancing effects of land transfer on farmers vary significantly depending on the local rural governance context, household’s social status within the community, and relative importance of internal family opinions in decision-making processes. This study demonstrates that the allocation of production factors should be examined within the overarching framework of urban–rural integration and provides empirical evidence and theoretical insights for central and local governments to refine relevant policy documents.