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With the active promotion of the concept of common prosperity, farmland has once again become the focus of attention in political and academic circles, and many scholars have advocated the further visualization of the property value of farmland elements to increase farmers' income. To promote the coordinated development of China's food security and common prosperity strategies, this paper attempts to reveal the dilemma facing farmland capitalization. Theoretically, based on the factor allocation decision logic of full-time and part-time farmers, this paper proposed the dilemma of farmland capitalization between increasing food production and farm household income. We empirically constructed a model to measure farmland capitalization and characterized its degree in 27 provinces in China's mainland from 2004 to 2020. The study also provided empirical support for the theoretical analysis by using a threshold regression model and a mediating effect model based on 790 microsamples from typical provinces. The results found that: ① Farmland capitalization showed a trend of increasing year by year nationwide, with a spatial distribution pattern of spreading from the center to the surrounding areas, and the provinces with a higher degree of farmland capitalization were concentrated in the main grain-producing areas. ② The impact of farmland transfer prices on grain production had structural effects depending on the degree of farmland capitalization: In the moderate capitalization scenario (farmland capitalization≤1.011), farmland price increases promoted the expansion of food crop acreage; in the excessive capitalization scenario (farmland capitalization≥1.154), farmland price increases suppressed food crop acreage. ③ Farmland capitalization helped to meet farmers' psychological expectations on the value of farmland assets, and significantly increased farmers' income by promoting two paths: the outflow of farmland and off-farm employment. ④ Farmland capitalization in China was facing a dilemma between increasing food production and increasing farmers' income, which posed an important potential problem for national food security. The capitalization of farmland can not only improve the problem of insufficient property income in the income structure of farm households, but also promote the non-farm transfer of rural labor, but behind it is the fact that a large amount of farmland is 'nongrain.' In the future, the Chinese government should emphasize the production factor attributes of farmland, use policy tools to guide the rational return of farmland prices, improve the market for productive agricultural services, and prevent the risk of farmland over-capitalization. [ABSTRACT FROM AUTHOR]

Water is the lifeblood of agriculture. Different from land resources, water resources can flow across regions. Based on the perspective of ‘physical water and virtual water’ flow and using the panel data of 31 provinces (autonomous regions and municipalities) in China from 2004 to 2020, this paper used the dynamic spatial Durbin model to estimate the impact of regional grain trade on the pro⁃ portion of grain planting and that of rice, wheat, and corn in the context of inter-basin water transfer. The results showed that: ① For grain output areas, the impact of ‘physical water and virtual water’ flow decreased, the overall proportion of grain planting increased, and the proportion of corn planting among the grains decreased. It showed that the increase of water resource pressure in grain output areas played a greater role in promoting the induced technological change of grain production and strengthening the regional production division than limiting them, and there was a ‘paradox of irrigation efficiency’, that is, the progress of water-saving technology led to the increase of high water consumption crops. ② For grain input areas, the impact of ‘physical water and virtual water’ flow increased, the proportion of grain planting decreased, the proportion of short-term rice and corn planting increased, the proportion of rice (high water consumption crop) planting increased more, the proportion of long-term rice and corn planting decreased, and the proportion of corn (low water consumption crop) planting decreased more. It showed that the regional division of labor and strengthening of grain production reduced the proportion of grain planting in grain input areas, but the internal structure of grain was developing in the direction of more water consumption. ③ Under the current ‘physical water and virtual water’ flow, the grain input areas had a negative spatial spill⁃ over effect on the grain planting proportion in the output areas and the corn planting proportion among the grains, which showed that the reduction of water resource pressure in the grain input areas had a negative impact on the grain production in the grain output areas, and intensified the phenomenon of ‘paradox of irrigation efficiency’ in the internal structure of grain. The grain output areas had no significant impact on the grain planting proportion in the grain input areas. In the short term, the planting proportion of rice and corn was reduced, and the planting proportion of rice, a high water consuming crop, was reduced more, the planting proportion of rice and corn increased in the long term, and the planting proportion of corn, a low water consuming crop, increased more, indicating that the grain out⁃ put areas promoted the development of the internal structure of grain in the grain input areas in the direction of water saving. Finally, this paper puts forward the policy implications of implementing the overall management of ‘physical water and virtual water’, vigorously promoting the development of water-saving agriculture in grain output areas, and establishing regional grain virtual water compensation systems. [ABSTRACT FROM AUTHOR]