Economies of scale for machinery service on plot level: Based on rice harvest of Jiangsu

Achieving economies of scale for machinery use is China’s policy orientation of agricultural mechanization. Based on the theory of economies of scale and a sample survey data of 289 plots in the 4 counties of Jiangsu, this paper applied a double-logged model to analyze the supply cost of farmers’ machinery services, especially for inner and outer scale economy on plot level. Results show that: the larger the plot, the lower the machinery operation cost; and the joint plot size, easy access to plots, short crop stubble, and non-lodging also reduce the harvesting cost. Particularly, if the single plot size is doubled, the mechanical operation cost increases by 81.9%, less than doubled. And the energy cost and machinery and labor cost also increase by 85.6% and 70.3%, respectively. The 1% increase in the joint plot size results in the 0.1% decrease in the machinery operation cost. In addition, it also results in the 0.2% decrease in the machinery and labor cost. In summary, this paper suggests promoting massive circulation and land consolidation, guiding monoculture and farmers’ joint outsource, and improving the construction of farmland infrastructure.