Study On The Theory And Techniques Of Cultivated Land Valuation

Based on the criticism and succession on modem land appraisal theory, this paper explored the construction of theory and methodology of cultivated land price under the sustainable development theory.1. Objectives and significanceWith the rapid development of the world economy and sharp increasing of population in 20th century, large amount of cultivated land resources are being consumed gradually. The modem economic development mode concentrated with the pursuing the increase of Gross Domestic Production (GDP) has been challenged by the increasing severe resources restriction. The modem land-value appraisal theory and methods, which based on the modem economic development theory, adopt the cultivated-land solo agricultural productive function as its value appraisal standard in the field of cultivated-land price evaluation. Under the precondition to seek for the maximal profit of private property right, the private marginal cost or benefit of cultivated land is the price of cultivated-land resource. Nevertheless, with the review of modem economic development theory and the establishment of economic sustainable development theory, the purpose of utilization of cultivated-land resource isn't only for the individual benefit and the contemporary benefit. Also, the contribution to the society by the cultivated-land used in the process of agricultural production is the fundamental contents of cultivated-land value.Consequently, the main purpose of this research was to establish the scientific cultivated-land price appraisal theory and methodologies through the review of modem land appraisal theory and methodologies. Accordingly, the improper appraisal methods on resources value adopted in the land use process would be regulated. Finally, it would be helpful to the reasonable use and effective protection of cultivated-land. Moreover, it would be in favor of regulating current deviant market trading behavior.2. Main research contentsThere are 5 main aspects in this research:(1) Analysis the essential characteristics of modern land price appraisal theory and methodologiesThe modern land appraisal theory is one kind of land value appraisal theory based on the modern economic development theory. According to this theory, land resource is a kind of production essential that can be replaced completely with the capital, which isn't the human common survival substance basis and condition. The value and price of modern land-value appraisal theory are the contribution rate to the land-owners by the function of land production essential.(2) Impact of Exterior character of cultivated-land use on cultivated-land valueThe represent and impact extension of Exterior character is a gradually advanced process. The definition of property right is a continuous renewed regulating process in accordance with the representation of Exterior character in different phases. The definition of cultivated-land Exterior character, firstly, was to study the contribution rate in the course of cultivated-land use under the status of complete private property right; Secondly, was to study the exterior character when the cultivated land use in the unbalanced marketing environment under the status of incomplete private property right. Based on these outcomes, the criterion and principle of Exterior character's definition were established.(3) Redefine the cultivated land property rightThere were 2 issues need to study. Firstly, the common character of Exterior character of cultivated land use was to analysis based on the clarification of the connotation of cultivated-land property right; Secondly, the connotation of current cultivated land property right was to define under the condition of rigid restriction to the flowage of the cultivated-land and labor & capital attached in the cultivated land.(4) Establish the theory and Methodologies of cultivated-land value appraisal based on the theory of sustainable developmentUnder the framework of sustainable development theory, the price of cultivated-land is the summation of discount value of cultivated-land future yearly economic value, which is the value embodiment of cultivated-land resource right after the transformation from exterior character to interior one. There are 3 basic approaches in modern land-valueappraisal, which are the one of income capitalization, the one of sale comparison and the one of cost approach. All those are suitable for the cultivated-land value appraisal oriented by sustainable development theory. Yet, the economic index confirmation and basic principles of each method need to be modified in accordance with the new theory.(5) Practice of cultivated-land value appraisal by means of cultivated-land value appraisal theory and methodologiesBased on the previous research foundation, the author applied new cultivated-land value appraisal theory and methodologies, explored the appraisal of nationwide cultivated-land value, and then calculated the gross cultivated land value in China.3. Research MethodologiesThis paper adopted mainly 4 methodologies to fulfill the research:(l)Logical reasoningModern land-value appraisal theory is a set of complete appraisal theory and methodology populated in the world. In order to seek for breakthrough in cultivated-land theory and methodologies, it is necessary to analyze this theory precondition and theoretical foundation and make a judgment to its practical result, then construct new cultivated-land appraisal theory through the rigorous logical analysis and reasoning.(2) Theoretic InstructionThis research was deployed under the instruction of scientific theory. The theoretic bases here are from sustainable development theory, property right theory and Marxian's surplus value theory, which breached the mode of modern land-value appraisal theory that based on land tax theory and location theory.(3) Practical inspectionIt was shown in the following aspects: Firstly, it showed that the modern land-value appraisal theory had serious limitation when deploying this theory to evaluate cultivated land price that led to the severe destroy of cultivated-land resource; Secondly, the scientific characteristic was tested through the appraisal practice of cultivated land price appraisal in our country after newly constructed cultivated-land value appraisal theory and methodologies were both applied in the practical work.4. Innovation pointsThe innovation in this research are as folio wings:(1) Clarify clearly the cultivated land property right in China under the current socio-economic and technical conditions. It brought forward that among all kind of rights in Chinese cultivated land, the income right of cultivated land production, the safeguard right of peasants' survival and the development right of cultivated land are existing concurrently. But, the income right of cultivated land production is the net income of cultivated land production function under the normal market condition that the investment can gain the social average return. If there is no condition of normal market, it needs to be modified according the normal market condition. Meanwhile, based on the dominion right of cultivated land ownership, the state food security strategic right and ecological security right are companied. These 5 rights are concurrently contained in the comprehensive right of cultivated-land.(2) Bring forward the basic theory outline of cultivated-land. (2-1) The limitation of cultivated-land is the basic hypothesis precondition for cultivated-land price appraisal. The precondition of cultivated-land price appraisal are: the price of cultivated-land is the one under the normal market condition; (2) the cultivated land resource is limited; ? the property right of cultivated land is confirmed legally. (2-2) The cultivated land price is decided by the economic value in future use duration. The future cultivated land use economic value should include the value contributed to the society by cultivated land besides the value produced from the procedure of purely agricultural production. Moreover, it is not only the economic value under the the normal market condition, but also the expectation for future cultivated land use. (2-3) The economic value of cultivated land in future use duration is the embodiment of labor value of cultivated-land resource property right. (2-4) The capital price and the particularity of cultivated land would have impact together on the cultivated land price. The interest rate of capital, the risk degree of cultivated land investment and the contribution to the society in the process of cultivated land use, are the determination factors on cultivated land price. (2-5) The price of cultivated land is influenced greatly by its demand and supply.(3) Put forward the new structural mode of cultivated land price under the sustainable development theory:...