Fast Machines, Big Losses: The Hidden Costs of Agricultural Machinery Socialization Services

ABSTRACT Agricultural machinery socialization services (AMSS) are the primary channel for mechanized grain harvesting in China. Nevertheless, mechanical harvest loss rates for the country's three staple grains exceed thresholds set by the Ministry of Agriculture and Rural Affairs (MARA), posing risks to national food security. This study examines the roots of opportunistic behavior among AMSS providers and its consequences for harvest losses. Using survey data from 649 rice farmers in Jiangsu, Sichuan, and Jilin provinces in China, we find that reliance on AMSS increases rice harvest losses, mainly because providers raise operating speeds—an expression of opportunism. Losses are higher when services are delivered by cross‐regional rather than local providers. Cross‐regional operators tend to work faster and find it difficult to build stable relationships with farmers; the one‐time deal of these interactions encourages opportunism. Seasonal time constraints further amplify these effects. When the harvest window is tight, dependence on AMSS significantly worsens losses. The results suggest that effective policy interventions must address the fundamental incentive misalignment in AMSS markets through standardized operating protocols, enhanced monitoring systems, and mechanisms that transform one‐time deal into repeated interactions.