Research On Linking The Increase And Decrease Of Urban And Rural Construction Land

China is currently in the rapid urbanization development period, and the urbanconstruction land contradiction between supply and demand has become increasinglyprominent. On one hand, with the urban population increase cesaelessly, the urbanconstruction area expanded rapidly, on the other hand, inefficient use of the ruralconstruction land especially the homestead waste is universal. China's cultivated land areahas been decreased to the baseline. In order to protect cultivated land and meet urbanconstruction land demand, local governments are implementing the policy of linking theincrease and decrease of urban and rural construction land. In the local practices,peasants' interests are not protected, and most of the benefits belong to governments. Inorder to protect farmers' interests, it is need to restructure the institution.The author analysed the institution of linking the increase and decrease of urban andrural construction land, put forward a proposal to endow peasants farmland developmentrights,and then restructure the institution based on peasants' farmland development rights.For reconstructure the institution, this paper first explores the suitable homesteadconsolidation model for protect peasants' interests in the demolition district. And theauthor pointed out that for market mechanism playing more important role, the range ofthe institution should be widen and provincial or national land develpoment rights transfermarket should be developed. For cultivating the farmland from the homesteadconsolidation effectively, the land coopertives will play an important role. And thelimitations on rural construction land transaction should be removed for stimulating thetransfer of agriculture labour forces.Secondly, for the new town plots, public and nonpublic use should be distinguishedstrictly. And farmland requisition should only be allowed for public land use, and thepeasants should be paid market price compensation which included the compensantion forfarmland development rights. The nonpublic land users should buy the farmland from thepeasants directly.Thirdly, linking the increase and decrease of urban and rural construction land needhuge capital, so feasible financing mechanism is needed. For enhancing peasants' fiancingability, agricultural land finance should be established, and government financing, indirectfinancing, direct financing and project financing should also be developed.Finally, based on the survey of S county's practice, the author proved that linking theincrease and decrease of urban and rural construction land should be restructured in order to protect peasants' farmland development rights.