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Whether farmland transfer can produce farmers’ income growth is an issue that has been widely concerned by society. However, previous empirical studies are quite different. This paper believes that the neglect of the heterogeneity of the impact of farmland transfer has led to these different conclusions. Thus, using the China Family Panel Survey (CFPS) data during 2010-2018, this paper analyzed the impact of farmland transfer on different types of farmers and different sources of income. The basic empirical results showed that: Firstly, farmland transfer did increase the income of farmers, but it was mainly on transfer‑out farmers, and the impact on the net income of transfer ‑in farmers was not obvious. Secondly, the impact of farmland transfer on different sources of income of the transfer‑in farmers and transfer‑out farmers was inconsistent. The growth rate of wage income of transfer‑out households was much higher than the decline rate in operating income. And wage income contributed 80% of the growth in net income of transfer‑out households; as for transfer ‑in households, the growth in operating income could not compensate for the decline in wage income, which eventually could not increase their total income obviously. The above empirical results did not change after a series of model sensitivity analyses such as the difference‑in‑differences model and the treatment effect model, indicating that the basic conclusions were robust. Furthermore, we analyzed the reasons for income heterogeneity and found that the key mechanism was on the labor resource allocation decision. Actually, for transfer‑out households, farmland transfer could increase the probability of migrant work and business opportunities, as well as the labor input for non‑agricultural production. On the other hand, for transfer‑in households, they would invest more labor in agricultural production and increase agricultural inputs. Further policy discussions also found that due to the weak dependence of transfer‑out farmers on technological improvement, the transfer‑out farmers only needed to ensure that they could find alternative jobs to obtain a higher income; but for the transfer ‑in farmers, due to lack of sufficient technical assistance, their land production improvement was limited. Thus, it was difficult to produce the optimization of resource allocation mentioned in the theory of land retention, which might limit the further expansion of the farmland transfer market. In summary, the research in this paper provides certain theoretical and empirical evidence for optimizing the land transfer policy, increasing the participation rate of land transfer, and finally realizing the improvement of the social welfare of farmers. [ABSTRACT FROM AUTHOR]

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