A new study revealed that outsourcing fertiliser mechanisation services in rural China can significantly reduce fertiliser use while improving wheat yields, offering a pathway to more sustainable agricultural practices.

The research, published in Agribusiness, was co-authored by Associate Professor Amin Mugera, from The  University of Western Australia School of Agriculture and Environment and The UWA Institute of Agriculture, and international colleagues from the College of Economics and Management, China Agricultural University, Beijing.

Conducted across Shandong, Hebei, Henan and Shanxi provinces, the research highlighted the role of different types of service providers, comparing individuals with organisations, in shaping fertiliser application outcomes.
Farmers who outsource fertiliser mechanisation services applied between 6 and 22 per cent less fertiliser than those who applied it themselves. 

Outsourcing both fertiliser mechanisation services and the supply of fertiliser to organisations delivered the greatest reduction in fertiliser use while increasing wheat yields, outperforming individual service providers. 

Factors influencing farmers decisions to outsource included household characteristics such as gender, education, off-farm employment and risk attitude, as well as farm characteristics such as farm size, soil fertility and land topography. Membership in cooperatives and the local availability of mechanisation services also played a role.

“Our findings show that moving farmers from self-application to outsourced mechanisation can generate substantial environmental, economic and social benefits,” Associate Professor Mugera said.

“Outsourcing to organisations, in particular, uses advanced machinery and technical expertise to optimise fertiliser use, protecting the environment while maintaining productivity.”

The study also highlighted urgent policy needs. Only about half of the households surveyed currently outsourced fertiliser mechanisation services, suggesting significant potential to increase adoption. Policymakers are encouraged to improve access to high-quality machinery, provide technical training for service providers and actively promote the benefits of outsourcing fertiliser application.

“By incentivising farmers and strengthening support for service providers, we can achieve more sustainable agricultural production and rural development,” Associate Professor Mugera said.

The research provides valuable insights for developing countries facing similar smallholder farming challenges, supporting the promotion of agri-environmental sustainability.