Why China’s AMS Market Is Difficult to Develop Sustainably: Evidence from the North China Plain

The agricultural machinery service (AMS) market enables China to rapidly realize mechanization on the basis of smallholder farmers. Academics generally believe that has created a model matches small-scale farmers with large-scale machinery. However, in recent years, transformation AMS from prosperity decline been under-analyzed. This paper used farm and supplier survey data North Plain estimate links between acquaintance transactions, segmentation losses terms transaction efficiency. We found although acquaintances is more expensive less efficient than non-acquaintances, still buy because this reduces costs AMS. transactions have led market, reducing efficiency gradually changed open closed China. Chinese government should determine how adjust policies promote sustainable development market.