Modern agriculture has extensive economies of scale. As the survival and modernization of smallholder farmers come from the external "support,” the economies of scale generated by the adoption of modern technology are shifted from the inside of farmers to the outside. The average division of land in China has resulted in a high degree of homogeneity in the operation scale of small farmers, which is objectively conducive to the concentration of similar technical needs, the realization of economies of scale of technology extension services, and the reduction of agricultural production costs. In academic theory, this kind of influence is called "local external economies". Its essence is a scale economy that exists inside and outside the region, and it is also a type of externality. Although the "small and average" land management pattern is conducive to the realization of local external economies, small farmers still lack the incentive to learn and apply new technologies due to the lack of economies of scale, and thus cannot achieve internal economies of scale efficiency. The development of nonfarm employment and land transfer in China is changing. In this process of change, the scale of land management spontaneously formed in the market tends to be dispersed rather than concentrated, which will lead to heterogeneous and scattered technical demands within the region, which is not conducive to service providers' improvement of service efficiency. In addition, operators, especially large farmers, adopt new technologies with strong positive externalities and lead the demonstration. However, there is a problem that operators only decide the optimal land operation scale according to their own cost and income, and do not consider the impact on the cost and income of other farmers in the region. Therefore, promoting the expansion of peasant household operation scale and "equalizing" policy interventions can improve agricultural production efficiency.
Regional external economies with respect to industrial and agricultural production are mentioned in the literature. These studies mainly discuss the influence of the increase in producers of similar products on the cost of each producer in the region but do not analyze the influence of the increase in producers of the same scale on the cost of each producer in the region. Since there is no public technology promotion in industrial sectors, and there is no fact that enterprises of different sizes face the same factor price system and similar technology demand, it is not necessary to analyze the scale similarity or scale difference of the industrial sectors. However, in agricultural production, especially smallholder production based on family labor, the difference in the operation scale is an important problem. Therefore, based on the perspective of the same products and similar scales, this study analyzes the local external economies produced by the scale change in farmers' management in the promotion of modern agricultural technology. There are a number of research questions related to the above arguments and speculations that need to be discussed. In China, the extension of modern technology to small-scale peasant economies relies heavily on external markets and support. Under the development of a small-scale peasant economy, will the difference in the technology needs of farmers of different sizes reduce the service efficiency of agricultural technology extension? Will an increase or decrease in the number of farmers of various sizes have external effects on farmers of similar or different sizes in the region? More specifically, from the perspective of time change and relative size change, does the increase in the number of large farmers of similar size in the region help large farmers who are mainly transferred to management to obtain technical services, thereby reducing their production costs or increasing their unit output? At the same time, what will be the impact of the increase in the number of large farmers on the acquisition of technical services and the business performance of small farmers mainly engaged in contract management? From the comparison of intra-regional scale and absolute scale, in the time and space with less land per capita and the prevalence of small farmers, whether there is an external environment suitable for small farmers to survive will make large farmers appear to be "the lone wolf dies but the pack survives", the operating cost advantage is not obvious but the unit output disadvantage is obvious; on the contrary, in the time and space with more land per capita and the prevalence of large farmers, whether there is an external environment suitable for large farmers to survive will make small farmers appear to be "the lone wolf dies but the pack survives", the operating cost disadvantages is obvious but the unit output advantage is not obvious?
Around the above research questions, this study examines the regional service-scale economy of modern technology popularization and the difference in the technology demand of different scale farmers in the smallholder economy. Next, it reveals the regional external economic characteristics caused by the change in farmer operation scale, determines the impact of the distribution of land operation scale within the region on the production and operation performance of farmers, and explores its mechanism, especially its role in reestablishing the agricultural technology extension service supply system. It then reveals the influence of the external service-scale economy on the characteristics of farmers' internal economies (or the relative operational performance of farmers of different sizes). The main research contents and relevant conclusions are as follows.
Research Content 1: To clarify the differences in the technology adoption of farmers with different land operation scales and the differences in their access to agricultural machinery and equipment, agricultural means of production, and agricultural technical knowledge.
The basic logic of this research is that with the expansion of the land management scale, the characteristics of fewer people and more land will make farmers tend to use labor-saving agricultural machinery and equipment, agronomy, and varieties. In addition, due to economies of scale at the farmer level, there are obvious differences in the channels for farmers of different land operation scales to obtain agricultural machinery and equipment, agricultural production materials, and agricultural technical knowledge. This study uses data from farmers’ surveys in three provinces in 2018 to analyze the differences in the adoption of technology of farmers of different scales and the differences in their access to agricultural machinery and equipment, agricultural production materials, and agricultural technical knowledge. The results show that larger land management farmers will tend to buy larger machinery rather than machinery services or manual operations, from more distant dealers to buy agricultural production materials and obtain door-to-door delivery services, and from a higher level of promotion channels (such as the superior public promotion department) to obtain agricultural technical knowledge of labor conservation.
Research content 2: To determine the role of the distribution change of land operation scale (the number of large farmers increased and the number of small farmers decreased) in shaping the service supply system of agricultural technology extension services and reveal the scale economy brought by the regional services of agricultural technology extension. The basic logic of this research is that the unequal distribution of business scale within a region contains the diversity of technical needs and the diversity of promotion channel selection. Compared to the method of using a single channel to promote similar technologies, the method of using multiple channels to promote different technologies is not conducive to the economies of scale generated by obtaining regional services for agricultural technology promotion. As the number of small farmers decreases and the number of large farmers increases, large farmers buy machinery themselves, changing the purchase channels of agricultural production means and agricultural technical knowledge acquisition channels. It may cause suppliers of agricultural machinery and equipment services and distributors of rural agricultural production materials to exit the market due to poor business. In addition, close and easily accessible public promotion services to villages may also be weakened by the reduction of service objects. However, the rise of large farmers will also lead to suppliers of technology and services that suit their production needs.
This study used data from agricultural productive service organizations and farmers surveyed in three provinces in 2018. To analyze the impact of the characteristics of land operation scale distribution in the region (village, town, or county). This impact concerns the selection of production activities of local agricultural machinery and equipment services, service pricing, dealer location of agricultural production means, and agricultural technology training of superior public promotion departments. The results show that the distribution of land operation scale in the region is concentrated in a larger range, which inhibits agricultural machinery service providers from providing cultivated land services. However, the concentrated distribution of business scale in a larger range within the region will promote the provision of seeding and plant protection services, encourage agricultural material dealers to provide door-to-door delivery services instead of a location close to the consumer market, and increase the frequency of agricultural technology training in the superior agricultural technology extension department. Moreover, for the same type of mechanical technology, in areas where there is more demand for mechanical technology and more services are provided, the service price per unit is lower and there are regional economies of service scale.
Research content 3: Determine the impact of changes in the distribution of land operations within the region on the availability of technical services and food business performance of large and small farmers. Thus, this proves that agricultural scale operations have regional external economic characteristics and a leading role for small farmers.
The basic logic of this research is that large farmers not only need to use a variety of mechanical technologies and search for and learn biotechnology knowledge but also rely on the external market and the public agricultural technology extension system. When large farmers with similar business scales continue to appear, they may realize cost savings or increase output through the sharing and outflow of external technical services, the outflow of new technologies, such as adopting new varieties and increasing output, and the positive externalities of transmissible pest control. At the same time, as the number of large farmers increases and the number of small farmers decreases, large farmers buy machinery themselves and change the channels of purchasing agricultural materials and acquiring agricultural technology knowledge. This practice withdraws the suppliers of agricultural machinery production activities and services and the outlets of rural agricultural production means from the market and weakens the function of agricultural promotion in rural areas. The result of this practice may manifest in the deterioration of the business performance of small farmers. Large farmers may also have a positive external impact on the surrounding small farmers through the sharing and outflow of external technical services, outflow of new technologies, and positive externalities of pest control.
This study uses the Farmer panel data from four provinces in 2014 and 2017 were used in the empirical analysis. It reveals the influence of the increase in large farmers on the production of major food crops (rice and maize) of large farmers and small farmers in the region, specifically involving the production cost of food crops, output per unit area, source of machinery use, and price of production services. The results show that, in terms of the operation performance of large farmers, from the perspective of cost, the increase of large farmers with similar operation scale in the region shows the regional external economic characteristics of improving the availability of mechanical operation services and thereby reducing the production cost per unit product of rice and maize. From the aspect of yield per unit area, for rice, the increase of large farmers with similar scales will increase the yield per unit area of large farmers by 50-200 mu, but it will decrease the yield per unit area of large farmers by more than 200 mu. However, for corn, the increase in large farmers with similar scales will not affect the yield per unit area overall. In terms of the operation performance of small farmers, for rice, the increase of large farmers with a similar scale in the region generally shows the leading role of improving the availability of mechanical operation services, reducing the price of services, and thus reducing the production cost of unit products. However, with the expansion of the operation scale, the leading force gradually decreased. However, for corn, the influence of the increase in the number of large farmers on the management performance of small farmers is uncertain.
Research content 4: To determine the influence of changes in the distribution of land management scale on the relative management performance of large farmers and small farmers. It is proved that in the era and region where small farmers prevail, large farmers "the lone wolf dies but the pack survives" and the relative management performance of large farmers is not obvious compared with that of small farmers, while in the era and region where large farmers prevail, the relative management performance of large farmers is more obvious.
The basic logic of this research content is that the increase in the number of farmers with similar operation scale in the region is mainly beneficial to them to obtain economies of scale of external services, so as to improve their relative operation performance. This study uses the farmer panel data from four provinces in 2014 and 2017 were used for empirical analysis. It reveals the changes in the distribution of land management scale in the region shape the internal scale economies of farmers who manage food crops (rice and maize). The results show that for rice and maize, the more large farmers of similar size relative to small farmers in the region will significantly improve their cost advantage, but the effect of reducing the yield disadvantage per unit area is not obvious.
Based on the above four research contents, the following main conclusions are drawn. There are obvious differences in technology adoption and channels among farmers with different land management scales. With the decrease of the number of small farmers and the increase of the number of large farmers in the region, it is beneficial to induce the external technical services suitable for large farmers and thus bring about the change of the living environment of small farmers. The increase of large farmers with similar operation scale in the region is conducive to increasing the availability of external technical services for such large farmers and small farmers and reducing the cost of technology adoption, so as to improve their business performance. The relative management performance of large farmers and small farmers depends on the distribution of land management scale in the region. The more large farmers with similar operation scale relative to small farmers in a region, the better their relative performance will be; the less large farmers with similar operation scale relative to small farmers in a region, the worse their relative performance will be. In short, the above conclusions reveal the regional external economic characteristics of the changes in the scale of farmers' management in the extension of modern agricultural technology. Therefore, from the perspective of externality governance, the research conclusions of this study support the development strategy of promoting the equalization of operation scale at the land transfer end and leading small farmers by scale operation, as well as improving the efficiency of land transfer allocation.