Email: zjingyujingyu@163.com

Affiliation: Southwest University, China

Nationality: Chinese

Balancing capital accumulation and political goals in contract farming: A case study from a marginal area in rural China

Abstract

Contract farming (CF) has been a focal point in debates on agrarian transitions, often critiqued for facilitating capital accumulation while undermining smallholder autonomy and livelihood security. However, how CF facilitates agrarian transitions while avoiding common pitfalls associated with capital accumulation remains underexplored. This study examines how CF in rural China balances agrarian capital accumulation with political goals aimed at stabilizing rural livelihoods. Drawing on a qualitative case study of rice CF in Sanxing Township, a peripheral agrarian region in rural China, this study investigates how CF operates at the intersection of agrarian capital and local power structures. Three questions guide the analysis: (1) How does agrarian capital intersect with local power dynamics in peripheral rural areas? (2) In what ways does CF mediate the balance between capital accumulation and state-led political goals? (3) What are the implications of CF for smallholder land use, labor relations, and livelihood strategies? The findings reveal that while the rice CF program in Sanxing restructures control over land and labor to facilitate scaled-up production and value chain integration, it does not necessarily lead to large-scale land dispossession or intensified labor exploitation. This outcome is shaped by the strategic mediation of local power structures, particularly the role of the state and village collectives, which play a crucial role in shaping the terms of accumulation and enhancing inclusion in agrarian value chains. The local state actively channels public financial resources, including agricultural subsidies, project funds, and poverty alleviation programs, into the CF program. This intervention not only mitigates the risks associated with capital accumulation for investors but also lowers the structural barriers to smallholder participation in value chains. In addition, village collectives serve as critical intermediaries in CF, refining redistributive mechanisms and mitigating the pressures on farmers of capitalist integration. Consequently, rather than being fully subordinated to capital, most contract farmers participate in CF as a livelihood strategy, leveraging contractual engagements to secure grain self-sufficiency and stabilize household incomes. The study contributes to ongoing debates in critical agrarian studies by conceptualizing CF as a hybrid governance mechanism, which embeds processes of accumulation within state-led rural development and redistributive logic. It also emphasizes the need to further integrate farmers' livelihoods more effectively into modern agriculture and strengthen their position in the redistribution of the value chain.

Bio

Jingyu Zhang is a postdoctoral researcher in Human Geography at the School of Geographical Sciences, Southwest University, China. She received her PhD in Human Geography from the University of Copenhagen in 2025. Her doctoral dissertation, titled "What Are the Prospects of Small-Scale Farming? Agricultural Transition in Marginal Areas of Rural China," explored the transition dynamics of smallholder agriculture in China's peripheral regions. Her research is situated at the intersection of agrarian political economy and rural development studies, with a particular focus on how state-led land reforms and local power structures shape trajectories of agrarian change and farmers' livelihoods. She engages in three interrelated thematic areas:

•  Land Politics and Agrarian Change: Investigating how land property reforms and state interventions restructure land relations and agrarian production in rural China.

•  Smallholder Livelihoods and Adaptation: Exploring how small-scale farmers respond to changing agricultural markets, policy reforms, and rural governance mechanisms.

•  Collective Economies and Rural Governance: Analyzing the evolving role of village collectives and local states in agrarian change in rural China.

Methodologically, she adopts an interdisciplinary approach that combines in-depth qualitative fieldwork, spatial analysis, and agrarian political economy to critically examine the political and institutional dynamics of rural transformation in contemporary China. Through her research, she aims to contribute to broader theoretical debates on agrarian change and the evolving relationship between the state, capital, and smallholders in rural China.