Impact of Rural Non‐Agricultural Employment on Eco‐Efficiency of Farmland Utilization in China: Evidence From 31 Years

ABSTRACT Improving the eco‐efficiency of farmland utilization (EEFU) is crucial for sustainable agricultural practices. This study employs a comprehensive, feasible, generalized least squares model to empirically assess the impact of rural non‐agricultural employment (RNE) on EEFU, revealing variations across grain production areas in China. This study also analyzes the spatiotemporal distribution and convergence of EEFU in China from 1990 to 2020 by using the global undesired super‐efficiency slacks‐based measure model and convergence model. Findings indicate that RNE constantly increases; meanwhile, EEFU initially decreases and then increases, demonstrating absolute β convergence. Provinces with low EEFU present a “catch‐up” effect with those characterized by high EEFU. A U‐shaped relationship between RNE and EEFU is thus recognized: RNE in China generally reduces EEFU but enhances EEFU in major grain‐producing areas. However, this relationship weakens in primary grain‐marketing areas and balanced production‐marketing areas. To improve EEFU, China should provide agricultural outsourcing services for elderly and smallholder farmers, addressing labor shortages, insufficient technology utilization, and low efficiency, thus promoting environment‐friendly production practices. Expanding farmland to achieve economies of scale in farmland utilization is also important for improving EEFU.