Can land transfer be profitable? Let me share what I know.

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The rise of migrant work has brought changes to land cultivation. People no longer focus solely on a few acres of land at home, because those few acres are the family’s livelihood. Income from working outside is several times higher than the income from those few acres—sometimes ten times or more. The income from farming a few acres has declined from a dominant position to a supporting role, becoming a side business for the family. This has led to situations where the elderly farm, and young people work outside. As a result, some entrepreneurs choose to lease land for their ventures. In the villages or towns I know, about 70% of the land is leased out. Are these leaseholders profitable? Let’s analyze:

First, look at the lease prices. Originally about 800 yuan per acre, now it’s around 1,000 to 1,200 yuan per acre. Calculating at 1,200 yuan per acre:

The planting models include wheat and corn, a season of spring sweet potatoes, and cultivation of medicinal herbs and vegetables, all calculated as one wheat and one corn crop. Wheat yields an average of 1,200 jin per acre, selling at 1.2 yuan per jin: 1200 × 1.2 = 1,440 yuan. Corn yields about 1,000 jin per acre, also at 1.2 yuan per jin: 1000 × 1.2 = 1,200 yuan. Total income from both crops is 2,640 yuan. Subtract the lease cost of 1,200 yuan. Expenses for fertilizer, seeds, harvesting, and pesticides for wheat are about 370 yuan; for corn, about 300 yuan. So, total expenses are 1,200 + 670 = 1,870 yuan. The net income is approximately 2,640 - 1,870 = 770 yuan. Without natural disasters, the leaseholder’s net income is roughly 500 to 700 yuan. Leasing 30 or 50 acres yields little profit; at least 100 acres or more is needed to be profitable. Based on my recent observations, to achieve significant profit from land transfer, the total scale must be large—success depends on volume.

Next, consider sweet potato cultivation. I know two large landholders: one leases about 2,000 acres to plant spring sweet potatoes, with an average yield of about 5,000 jin per acre, selling at 0.8 yuan per jin. Income per acre is 4,000 yuan. Subtracting 1,200 yuan for fertilizer, seedlings, and planting costs, and 1,500 yuan for other expenses, the net is 4,000 - 1,200 - 1,500 = 1,300 yuan per acre. Growing sweet potatoes yields 500 to 600 yuan more profit than wheat and corn. In years with high market prices, net income per acre can reach around 1,000 yuan. This is the second scenario observed in land transfer and income. Changing planting structures and modes is also a way to increase economic returns.

Finally, large vegetable growers. Initially, they leased 300 acres to grow asparagus. After several years, they expanded to over 800 acres. They harvest about 1,000 jin per crop, 2 to 3 crops a year, totaling around 3,000 jin annually. At 5 yuan per jin, income is 3,000 × 5 = 15,000 yuan. After deducting 5,000 yuan for investment, profit is around 10,000 yuan.

In summary, land transfer can be profitable. The key is that the planting models and crop varieties must match market trends. From these examples, it’s clear that the scale of leasing is crucial—large-scale planting, not just a few acres or dozens, but hundreds of acres, is necessary to see significant income growth and profit. Choosing the right crops is also critical. For the same area, planting sweet potatoes yields higher profits than wheat or corn because sweet potatoes have a large yield potential—ranging from 4,000 jin to over 10,000 jin. With some measures, increasing yield by 1,000 or 2,000 jin is quite easy. Selecting the right varieties and staggered planting can also boost income by thousands of yuan. Growing sweet potatoes is less profitable than asparagus, but requires significant upfront investment. If funds are sufficient, leasing land to grow asparagus is a very good option.

In conclusion, land transfer, large-scale planting, and land shifting to skilled farmers are the future directions of rural agriculture. Farmers earn land rent and free up time for wage work, which can be several times more profitable than just farming a few acres. When land is leased to capable farmers and cultivated scientifically, it can generate steady profits, creating a new type of “landlord” in the new era—achieving a win-win situation for both farmers and leaseholders.

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