This is model that explores how a few farmers in a Chinese village, where all farmers are smallholders originally, reach optimal farming scale by transferring in farmland from other farmers in the context of urbanization and aging.
The model is designed to simulate farmers’ behavior of transferring farmland in rural China. We create a world representing a village with heterogeneous farmers who can transfer in or out farmland. The farmers that transfer in land, in general large land holders, are exogenously chosen for the moment. The propensity a farmer transfers, in or out, farmland is determined by his age, degree of off-farm work.The amount of land that a farmer can transfers in is restricted by his optimal farming scale, whereas the amount of land that a farmer can transfers out is restricted by his survival farming scale. In addition, farmers are assumed to only transfer adjacent land in.