Research On The Property Right Mortgage Mode Of Rural Land

Documents of the central government propose the concept of rural land ownership, contract rights and management rights in 2014 firstly, from the basis of two rights into three rights. Rural land right mortgage refers to financing in the form of land management right which providing long-term loans to farmers engaged for agricultural production. Capital outflows and difficult to satisfy the financing needs of farmers are exacerbating the plight of rural economic and social development. As an important part of rural finance, rural land right mortgage is playing great role in promoting optimal allocation of resources, credit funding and agricultural competitiveness and so on. Therefore, many documents of the central government give the guidance to the farmland finance reforms. At the same time, the People’s Bank of China and the China Banking Regulatory Commission give the necessary support. Under the licensing policies, many provinces according to their respective conditions and advantages carry on different modes of rural land mortgage. Rural economy in Ningxia Pingluo is now in the transformation stage from the traditional scattered peasant household system to the modern industrialization of agricultural production pattern. The State Department of Agriculture identifies it as rural reform pilot area in the end of 2011. Local area mainly responsible for the management of rural land property rights system reform experiments task, the rural land mortgage now enter to the operation stage. Therefore, as a government-led model of rural land mortgage, how farmland financial market participants(farmers and financial institutions) evaluate it? How about operating results alleviate the financing problem of local effectively? How to optimize the existing rural land mortgage mode? These are the major research questions of this study.Therefore, based on the domestic and foreign analysis about the rural land mortgage, take the theory of property rights theory, behavioral utility theory, rural finance theory as a guide, combined the method of qualitative and quantitative analysis, our study focus on the rural land mortgage in Ningxia Pingluo. First, start with a comprehensive study of the existing researches and theory about this topic; design the theory analysis framework as the theoretical basis of this study. Secondly, describe Ningxia Pingluo rural land right mortgage in detail and summarize its operating characteristics and the problems. Thirdly, from farmland financial market two participants(farmers and financial institutions) explore the factors that significantly affect their willingness, and quantitative evaluation of farmer participation satisfaction and financial institutions operating results. Fourthly, select indicators from farmers and financial institutions to operate rural land right mortgage objective evaluation. Finally, Based on the study of the problem has been the issue, give financing model optimization goals and specific programs, and put forward policy suggestions.The mainly research conclusions in our study are as follows:(1) As a government-led rural land right mortgage mode, location Advantage, urbanization and policy support help rural land right mortgage business can be carried out smoothly. By the end of 2015(first quarter), local has payment the quantity 10902, cover the amount of 516.67 million yuan, 231,054 acres of agricultural land. From the size of loans or loan items, they have emerged as a big increase in past three years. Through introduce the rural land right mortgage mode, it has been initially set up rural property transfer platform and risk fund in local, but there are some problems about legal constraints, lack of third-party evaluation institutions, risk diversification mechanism and government intervention lead to larger organization costs.(2) From farmland financial market participants, as rural land property mortgage financing’ rate only based on the People’s Bank of China short-term rate by 50%, the farmers have lower financing cost. There are 77.04% farmers have participate in rural land right mortgage willing. In different types of farmers, willingness to participate accounting for 19.16 %, 25.74 % and 32.14% respectively, it means willingness to participate with the increase of farmer type. Age, education, from agricultural rate, credit institutions, land area and business attitude are the factors affecting farmers’ willing. There are 168 farmers get the rural land right mortgage loan, which 66.67 % of get loans farmers expressed satisfaction. By building farmer satisfaction evaluation system, it founds Pingluo farmers concerned rural land mortgage about use restrictions, repayment period, process,assess the value, funds satisfaction and funds to solve the problem. There are seven local financial institutions provide rural land right mortgage business, statistics show that rural commercial banks accounted for more than 90% market share. Due to the great support of national policies, about 71.43% agency staff think rural land right mortgage optimistic about it prospects, but only 54.17% are willing to participate in the mortgage business because of the problem. Family income, loan records, land area, land ownership, risk compensation and land disposal are the factors agency staff’s willing, land values and business competitiveness are not significant. Because of low interest rates, rural land right mortgage business income only accounted for 4% of total revenue financial institutions, business efficiency value from 0.965 in 2013 decline to 0.682 in 2014.(3) From rural land right mortgage mode evaluation, 124 farmers get full loan, 129 farmers by financing constraints, among them supply constraints 94 and demand constraint 35.The main financial constraints reason is conflict between financing needs and financial institution risk aversion. In different types of get loan farmers, accounting for 55.56%, 70.00% and 95.79% applying farmers respectively; it means getting loan with the increase of farmer type. But from full financing degree distribution, accounting for 46.19%, 43.66% and 43.07% applying farmers respectively; it means getting loan with the decrease of farmer type. By econometric model analysis, sample farmers potential financing demand is 63172.9, actual access to financing is 43064.52, local rural land right mortgage can meet the financing needs of farmers 68.17%, the effect is obvious.(4) From the problem of rural land right mortgage mode, this research proposal the “Government and market” model optimization goals, and it should insists the principle of separation of rural land property rights, local conditions, financing funds for agricultural purposes, main market participants and government support in second place. To achieve the rural land right mortgage optimal goal, there are relevant policy recommendations about promote rural land right mortgage-related legal revision and reform, introduce professional assessment agencies, foster and standardize the rural property market turnover, build the social security system in rural areas and promote the industrialization of agriculture, introduce market cooperation organization to ease the organization cost.