The shortage of land resources has become a serious problem in China's rapid urbanisation. A recognised method for solving arable land resource shortage problems is to encourage marginal farmers to terminate their arable land use contracts with the government so that they can be transferred to farmers with better prospects. This paper analyses the drivers behind farmers’ willingness to terminate their arable land use contracts based on survey data from agricultural households in Guanzhong, Shaanxi Province, China, using a multivariable logistic model. Results show that households led by male householders, with large families, fewer agricultural labourers, more plots of land, including family members with non‐agricultural skills training and including family members who are covered by rural residents’ health insurance, are more likely to terminate their contracts.