The Mechanism Of Farmland Transfer

The right of the rural land transfer and emergence of the rural land transfer is an important reform in Chinese system. With the gradual transfer of agricultural land universal and localities have also begun to explore the transfer of different types and operation mode, such as villages take part in the large-scale circulation patterns in recent years, as well as some intermediary agency participated in the land transfer, and so on. How the connotation of the various land transfer phenomena and its happening operation and development can be summed up theoretical level. Undoubtedly, extract the land transfer operation mechanism, have a very important theoretical value and practical significance. Not only helped us to better grasp the future direction of the socio-economic reforms, but also we can help guide the current practice of the land transfer and promote the optimal allocation of land resources and efficient use.So far, the main research of the land transfer is about: farmer's behavior, land transfer and scale of operations, the land market mechanism, the intermediary agency and government intervention. Through systematic literature review, we can found that the study did not research on the emergence of some new phenomena (such as the large influx of foreign farmers in suburban areas engaged in agricultural production, "three-capital" has begun to enter the agricultural development, etc.) but didn't make systematic explanation, only a few articles talk about the economic behavior of the both supply and demand and price formation mechanism of transfer, intermediary agency and its operating mechanism. Therefore, based on Nanjing's practical development and the case study, discussed the general operation mechanism at this stage, specifically including the supply and demand bilateral economic behavior, and the transfer price formation mechanism, the reason why the intermediary organizations come into being and running principle, as well as the impact of the institution (Policy) reform to agricultural land transfer, and so on.Taking the different types of agricultural land transfer into account, its emergence and development is essentially closely related with the different stages in agricultural land transfer. First of all, based on the transfer development, the article builds an analytical framework about the operation mode and its evolution rule. Thus, provides a necessary analysis perspective, scope and logical structure for the in-depth and systematical theoretical and empirical analysis.First of all, the article analyse the development status and characteristics systemicly. It is not difficult to find that the transfer in China is still in development stage, has five main characteristics: Firstly, the development of the market is slowly; Secondly, the forms is various; thirdly the main partners are diversificated; fourthly, the transfer price is very low and the geographical differences is obviously; fifthly, the intermediary organizations have emerged. Subsequently, there are two issues in the agricultural land transfer, the first one is that the infraction of the farmer's right and second one is that the transfer managemen is lagged. These are the basis which provided the background and logic for the later study on the agricultural land transfer operating mechanism.Based on the transfer status and transfer characteristics, combine with the former general theory of analytical framework, the paper began to focus on the operational mechanism. First, the article analyse the supply and demand in economic activities and the transfer price formation mechanism from the theoretical level. The results shows that the equilibrium price is affected by the the relevant factors of the supply and demand. Specifically, these factors can mainly be attributed to natural factors (including location and terrain conditions), the economic and social factors (including changes in demand for agricultural products, the right to stability, etc.) and policy and system factors (including agricultural subsidies and tax policies, etc.). Second, the thesis research in the fields of the intermediary organizations, and its operation mechanism. As in the transfer of agricultural land contains a large number of transaction costs, such as the cost of gathering information, the drafting of contracts, the cost of negotiations, signed a contract, the cost of the contract after the transaction costs. Therefore, in order to save costs and improve the efficiency of the circulation of agricultural land, the intermediary organizations have space to be existed. Overall, the intermediary organizations is not only save transaction costs and expand the transaction radius, overcome the closure of the transaction, but also will be able to apportion the transaction effectively to all participants in the transaction, to avoid "free-rider" phenomenon, and transfer the agricultural land to the more efficient users. Third, the paper also further explores the mechanism that the institution (policy) reform and innovation for the transfer of agricultural land. This can be divided into two levels: the central governments and the local governments. Specifically, the central government on the transfer of agricultural land supply system is mainly embodied in the following three policies: (1) fiscal policies, mainly related to the direct food subsidy and agriculture tax relief. After the two policies, the number of transactions decreased significantly and the rent increased significantly, (2) social security policy, the new-type rural cooperative medical care system, can not substitute for land from the fundamental commitment by the various social support functions which shoulf provide by the government. This function is distorted and impeding the transfer of the agricultural land supply, (3) land policy, first the central government ban the transfer, but now they encourage landowners to focus on moderate scale operation, and promote land transfer to the scale of operations and concentrated. Certainly, to a certain extent, the local government's policy innovation can also promote the transfer of the agricultural land. The local governments understand the needs of the local people best, be able to provide the most suitable policy for the local people. In addition, they are sharing the external profit, the central government's institution supply and the local government's innovation formered thesupplierers of agricultural land, the demanders of the agricultural land, the central and local governments to a win-win situation.In response to these derived from the theory of the former arguments, the article followed with a field survey in Nanjing, including the transfer of supply and demand, the formation of the equilibrium price, intermediary organizations, as well as the operation of the system and so on. To obtain the following major empirical perspective: (1) For the local general farmers, their land into land supply will more than the wishes of foreign farmers, cultivating large agricultural enterprises and the arrival of the land is made supply and demand into balance. As for the transfer of agricultural land prices, its mainly by the agricultural land where the geographic conditions, changes in product demand land, the transfer of farmland period, the right to stability, the type of agricultural land, agricultural land terrain conditions and the country's macro-common factors such as policy decisions. (2) From the transfer development practice in Nanjing, in the past, the transfer is occurred between acquaintances, the transaction costs are small, so the intermediary organization is not happening. In recent years, a large number of foreige farmers come into the suburban vegetable production base and large-scale transfer happened, the intermediary organizations have emerged. In addition, the transfer of agricultural land in Nanjing also reflects theactual Government and its agents——the village committee, to some extent, take on theobligation of the intermediary organizations. It is conflicted with the direction that the government should gradually withdraw from the areas of microeconomic competitiveness. Once the disputes happened, and the masses can easily directed against to the Government, thus not conducive to the smooth implementation of the government work. But the market intermediary organizations isn't healthiness, the government and its agents are the best promoters to promote moderate scale operation, and can save transaction costs, and expand transfer radius, thus to a certain extent solved the circulation of agricultural land transactions closed issue. (3) In recent years, some of Nanjing's local policy and institutional innovation model has also greatly promoted the development of the circulation of agricultural land. Specifically, the relevant local policy stresses the need to strengthen the regional land transfer planning, coupled with the peri-urban areas's transfer and the urban development planning, and provides rent increasing mechanism. The emergence of local policy innovation, such as the shareholding co-operative system and the scale operation are propitious to promote the transfer.Finally, we are drawing a conclusion. In short, the transfer of agricultural land through the operating mechanism of the theory with the corresponding empirical analysis, this paper is mainly to solve the following four aspects: (1) the deciding factor of the equilibrium price, (2) the factors which affect the agricultural land's transfer willingness (3) transaction costs and its mutual relationship with the intermediary agency (4)the role of the central government institution supply and local government's institution innovation to the agricultural land transfer mechanism. Based on the results of these theories and empirical research findings, we can draw a conclusion that: We can use agricultural land to attract investment; gradually regulate the contracts; make full use of the price mechanism; develop the intermediary agency; consummate the rural social security system as well as explore the institution innovation.