The Impact Of Land Contract And Management Right Confirmation Is Indeed The Right Of Household’s Land Circulation Behavior

Less arable land for increasing population in China is the endowment situation faced by the Chinese agricultural production for long, significant changes have taken place in rural area by implementing the two-tier management system that integrates unified with separate management on the basis of household contract management. Land, as a fundamental factor of agricultural production, serve as farmers’both means of production and indispensable subsistence security. So far, farmers has enjoyed the right to contract and manage the rural collective land according to law, which is an important breakthrough in the rural land system reform and also an embodiment of the basic rural operation system in legal system. In some parts of China, however, repeated land law violation, the unstable land contracted relationship and the poorly prosecuted policy are still doing harm to famers’interest and undermines rural social stability. Thus, it has become the core of rural land property system reform under the new times background to let farmers fully enjoy the benefit of land contract management rights by protecting the rights and stabilizing the contracting relations. As the confirmation of land contract and management rights becomes the basic system choice to protect famers’rights and land circulation becomes essential content of stabilizing and perfecting the land contracting relations, to explore the effects that land contract management rights confirmation have on land circulation is totally in line with the current content of the rural land property rights reform.This paper consists of seven parts. The first part explores the policy evolution of land contract and management rights confirmation, including the analysis for land contract and management rights policy, rights confirmation policy and policy evolution’s driving force. The second part discusses the impact mechanism of land contract and management rights on the land circulation with the theory of property rights, since the clarity of property rights can reduce transaction costs, and lower transaction costs give rise to land circulation market development which promote the chance of land circulation. The third part uses game theory to analyze the effects that land contract and management rights have on the transfer interest subjects, including the analysis of willingness of land circulation, the game behavior and strategy selection of those subjects. The forth part studies how the confirmation of land contract and management rights affect the mode of land circulation with developing in three perspectives:the distribution of profits, the variation of methods and operating patterns of different kinds of land. The fifth part focuses on how the confirmation of land contract and management rights influence the risk of land circulation, and three aspects are included:the risk aversion function of the confirmation of land contract and management rights, the new pattern of land circulation under risk aversion. The sixth part is the impact assessment of the confirmation of land contract and management rights which develops with the points of risk and yield with case study. The seventh part presents empirical evidence based on the data of investigation of 324 farmers in Shandong, and by means of data analysis to reveal the mechanism pattern.Through the research in this thesis, following conclusion can be draw:first, the confirmation of land contract and management rights enables the rights to shift from physical form to value form, then farmers can turn their property rights into cash by transferring their land. Second, the confirmation help the transfer subject alter form smallholders to new agricultural business entities (agricultural enterprises, professional cooperative agriculture organizations, family farms and professional investors). With the continuous development of land circulation, new type of agricultural management entities gradually become the main part of land circulation subject, crowding out those traditional ones. Third, the confirmation enables the way of land transfer to evolve from initial state, such as leasing, to some more sophisticated way(United tillage associated species, land hosting, land trusts, etc.) there are significant differences in rent, transfer duration, the risk degree of farmers, the perfection degree of law and the maneuverability while different methods are applied. Forth, the confirmation can avoid the risk during land transfer by reducing unethical behaviors and rent-seeking activities. Fifth, yet in practice, however, the confirmation fails to bring substantial improvements to farmers’living and production condition or to bring value increment to the land contract and management right due to the slow-developed land market. In traditional agricultural regions, the land rent is not directly related to the confirmation of land contract and management right, but the rent shows a direct impact on farmers’income during the land transfer process, so that the effect of confirmation of land contract and management rights on farmers’income from land transfer is not significant.Finally, the policy implication are as follows:First,to accelerate the confirmation process, land right registration and certification work; Second, to encourage the new agricultural business entities to be the land transfer subject; Third, to encourage the innovations of transfer method; Fourth, to strengthen the risk-averted function of the land transfer contract; Fifth, to cultivate the land transfer market and promote the realization of value function of the land contract and management right.The implications above aimed to raising upgrade the land circulation system and to help the confirmation of land contract and management right to boost the land transfer.