Converting rice paddy to dry land farming in the Tai Lake Basin,China: toward an understanding of environmental and economic impacts

Water pollution is a well-known major problem in the Tai Lake Basin, China. Compared to industries and domestic sewage, non-point pollution from agriculture is more difficult to detect, measure, and control. Therefore, a range of policies has been formulated, among which is that of ‘adjustment of the planting structure.’ However, this policy during implementation has been used to simply convert paddy fields to dry land and food crops to cash crops. More surprisingly, to date, no research has provided evidence that such an agricultural land-use change contributes to the reduction of agricultural nutrient pollution. Based on an extensive farm survey, this research finds that conversion of rice paddy to dry land farming has not generated a positive effect on nutrient pollution control. It is estimated that nitrogen runoff from agricultural land has increased by 11 %, while phosphorus runoff has increased more than two times since land-use patterns changed, as farmers are inclined to apply more fertilizer on dry land than in paddy fields. However, this agricultural land-use change is economically effective as land-use conversion increases the net profits of farming in a significant way. It is demonstrated that, compared to environmental concerns, economic considerations are seen to have greater benefits after such an adjustment in the planting structure. These findings have important implications for policy making by local authorities in their efforts to improve environmental management and pollution control in their territories.