Abstract:
Objective A threshold of farmer household income established using the economic data and model to yardstick the effect of agricultural scale and structure on poverty alleviation of the agriculture communities in the province for formulating effective managing and funding policies to improve the social condition was studied.
Method A regression model based on the theories of agricultural development and poverty along with the social and economic data collected from the counties in rural Fujian was applied to constructed the poverty threshold for the farming households. The per capita disposable income threshold determined by minimizing the sum of squares of residuals was weighed against the local agricultural scale and structure with the considerations of infrastructure, finance, education and medical services of the community.
Result When the disposable income of a farm household was below the threshold level, the bigger operation with low business competitiveness, the less effective was the alleviation effort. But structural modifications would improve it. In contrast, when the disposable income had surpassed the threshold, expanded operational scope could usher in a positive effect for alleviating poverty. And, an expanded operation with a competitive edge on the market would further enhance poverty mitigation. Once out of poverty, a community would enter a virtuous cycle of expansions from the capital accumulation resulting in further improvement on the economic status of the resident farmers.
Conclusion There appeared a threshold effect relating to the scale and structure of an agriculture operation on poverty alleviation in Fujian rural areas. For those regions stricken by poverty, optimizing agricultural structure and improving infrastructure to facilitate production would be appropriate for effective poverty alleviation. On the other hand, in the areas that have already raised beyond the threshold level, exploring new land uses, scaling up operation and maximizing utility of resources could be the beneficial measures to implement.