The Study On Distortion Of Farmland Conversion Price During Rapid Urbanlization

Industrialization and urbanization are an inevitable way of social development,with the development of industrialization and urbanization, the changes of population structure, resources and capital structure continue to occur, in which, farmland conversion is the derict effect. Since reform and opening of China, farmland conversion provides the necessary support to land for economic development, but rapid growth of farmland conversion leads to much loss of arable land resources, and bring a series of social, economic and ecological environment problerms. Because of the serious government failure in the course of land resources allocation in our country, the farmland coversion price is distorted. In addition, because a set of science and reasonable theoretical framework about accounting price of farmland conversion still has been constructed in present of our country, specially, the defects of present land policy and regulation result in the price of farmland conversion deviate from its value and right, by which, the distribution of farmland conversion benefit is not reasonable, and then the allocation of land resources is inefficient or invalid. Terefore, for improvement of allocation efficiency of land resources and optimization of allocation structure of land resources, the farmland conversion price must be corrected. Just for this purpose, this paper put forward the distortion of farmland conversion price, analyzing its reason and influence, thereby giving the methods of correction and proposal.In the first part of this paper, research background, research purpose and significance, research contents, analysis framework, research thinking and methods are introduced. The research on the base theory of farmland price, accounting methods of farmland price, the distortion and correction of farmland conversion price and distribution of farmland benefit are reviewed and commented also.Secondly, this paper hackles the theory of farmland price and its distortion, and constructes the theoretical analysis framework of distortion of farmland conversion price. On the base of emphasizly analysis on formation mechanism of farmland conversion price, this paper reveals the distortion of farmland conversion price is a duble distortion cause by government faiure and market failure. At the same time, it also analyzes the reason of government failure and market failure, and then indicates the reason of government failure is the excessive government intervene. On the other hand, the reason of market failure is the external problerm caused by unreasonable defination of farmland right. Therefore, the distortion cause by government failure is the main area of the distortion of farmland conversion price.Then, this paper reveals the feature and the performance of the distortion of farmland conversion price from the viewpoint of region and nation in China, and concludes the degree of the price distortion cause by government failure is more serious and more general than the degree of the price distortion cause by market failure on the base of the comparison between the degree of the price distortion cause by government failure and market failure. After that, this paper analyzes the efficiency loss of resources allocation induce by the price distortion and the influence on society and economic from the viewpoint of the relation between the distortion of farmland conversion price and the farmland excessive conversion, the distortion of farmland conversion price and the loss of peasant rights, the distortion of farmland conversion price and economic growth, and then brings out the urgency and the necessity of the price correction of farmland conversion.Next, this paper brings up the methods and the way of correction of farmland conversion price base on above the theory and the analysis, which according to the way that is the rights firstly, the market secondly, the price thirthly, the benefit finally. At the first, this paper suggests that the farmland rights system need be reconstructed, and its connotation and owner also will be redefined. Specifically, the community in rural is the owner of farmland ownership, which including the right of farmland use, the right of farmland developmen, the right of farmland external benefit, and the country share the benefit of farnland conversion through the right of tax. Secondly, this paper also suggests that the market machinsm should be brought in the process of farmland conversion, that community-owned land is equal to stat-owned, and that exchange of land rights will be put through market. At the same time, the function of government will be changed, that is, government will withdraw from the market exchange, and take the responsibility of manager of public affairs. Thirthly, this paper come up with the farmland conversion price will be determined by the social cost, which comprise the economic value of farmland, the social security value of farmland, the food safeguard value of farmland and the ecological environment value of farmland, farmland price that determined by these marginal cost realizes the efficient and sustainablility of resources allocation, this is inevitable choice of economic development. Finally, this paper proposes that the benefit farmland conversion should be distributed according to the rights of farmland, that is, the system of farmland rights will be applicated in the distribution process of farmland conversion benefit, the owner of rights will get economic benefit, through which, peasant right will be propected, social security in rural will be constructed and the target of harmonious economic development will be achieved.Besides that, as the way of achieveing farmland conversion price, the distribution of benefit became another issue of this research. Firstly, this paper proceed with theoretical analysis, expand on the essence of the distribution of farmland conversion benefit, and then indcates that the distribution of farmland conversion benefit includes the first distribution and redistribution, that the source of benefit is labor value, and that the benefit distribution by right nof only reflect the fair principle but also reflect the efficiency principle. On the whole, its essence is the concrete distribution within labouring people. Because the social security function of farmland have the meaning of benefit redistribution, so the distribution of farmland conversion benefit should reflect more fair principle, on base that, the efficiency of resources allocation is increased through the adjustment of external benefit. Secondly, the benefit allocation pattern is analyzed from the viewpoint of nation region. Thus, the present distribution of farmland conversion benefit is serious unfair, and suggests that the pattern of benefit distribution need be readjusted, the base way of which is according to the rights that base on ownship, and the benefit should be distributed to different owner of rights that be independed from ownship, through this way, the different owner get relative reasonable benefit to meet their economic demand finally.Base on above, this paper take the example of all provinces in whole country, empirically analyzes the distortion and correction of farmland conversion price and its benefit distrabution. Concretely, the example embodies individuality of distortion of farmland conversion price on the whole country scope, base on this, the said way of price correction is applicated in this demonstration to verify the result of this study. Above the analysis result and study is verified, through the comparation between distortion degree, the cinclusion is draw out that the distortion induces by government failure is primary distribution, but the distribution induced by market failure is secondary distribution, and that the benefit distribution pattern base on rights is main way of reasonable benefit distribution of farmland conversion, and this way can increase peasant's gain, suppliy the funds of farmer's social security, change the function of government.Finally, this paper draws out the conclusion and put forward policy measures. The conclusion are obtained as follow:1.The distortion of farmland conversion price is a duble distortion. In that, the distortion induces by government failure is about 80 percent in whole distortion, and the distortion induces by market failure is about 20 percent, this also proves the price distortion cause by government failure is the main area of price distortion.2.The distortion of farmland conversion price leads to farmer's interests be seriously damaged. That is, the main expression of distortion of farmland conversion price is that the price of land requisition is too low comparates with the market price of farmland, but this loss is accepted by farmer and the community in rural,thus, the living standard of farmer always can not be raised.Through the caculation about loss of farmer during 1992 and 2005, in this time, the loss of farmer interests cause by farmland requisition has achieve 1200 billion yuan that is equivalent to decrease farmer's the living standard 20 years.3. The distortion of farmland conversion price make the efficity of enconomic development lower. That is, the distortion of farmland conversion price make farmland resours price always is much low, that lead to cost of economic functioning is too low, theremore, this low cost will make the change of economic growth way slower, and the resources input with a little output inevitely result in the exchaust of resources, beside this, it make many enterprise produce on the way of expand, thus, they ignore the resources input for max their profit, therefore, this inefficient development trend will make the welfare of whole social lower, and make the structure of industries unreasonable, finally a lot of resources will be wasted and the build of industries will be repeated.4.The correction of farmland conversion price will be proceed in an orderly. Because of the distortion of farmland conversion price is main cause by government failure and market failure, so the correction of farmland price must be proceed in an orderly and in accordancely. Firstly, the price distortion induces by the government failure will be corrected through market. Secondly, the price distortion induces by the market failure will be corrected through the method of social cost.5.The distribution of farmland cinversion benefit deverges from not only the fair principle but also the efficiency principle. In the present pattern, government get the most interests, and the benefit is not main used to development the economic of rural, but is used to supply the public goods and the infragstructure of city. This pattern has farmer's share to benefit of farmland conversion induced at the expense for increasing the interests of citizens, therefore, it is very unfair. At same time, this unfair pattern damaged the interests of farmers, and make the farmers lose their living security to become the poor, and then the social stability are influenced. The lot of loss of social welfare is huge social cost, and it will decrease economic efficiency.6. the benefit of farmland conversion should be distributed base on the rights. In accordance with the theory of property income, the benefit of farmland conversion should be reasonably distributed base on property rights on that have been clearly defined. Beacause the unfair distribution pattern damaged the interests of owner, so property rights must be redefined, in accordance with which, the result of distribution may protect the gain of owner and farmers, and then increase the social welfare.Base on above, this paper also proposes the policy measures for the reason of price distortion and the reform of benefit distribution. Firstly, it suggests that the owner of farmland should be the community in rural for the defection of right system, and the farmland should be managed through appointment. Secondly, it proposes that the market of farmland conversion should be perfected, and that the farmland should be directly put into the land market that be unified with that of city. Thirthly, it proposes that the reform of farmland requisition regulation should be promoted effectively, and that the function of government should be changed, and farmers should be compensated in accordance with the market price of farmland. Finally, the benefit distribution should be controlled, and the system of social security should be unified in whole social. The system of tax should be reformed to internalizate the external benefit of farmland, and then the system of land tax should be constructed main to the land value-added tax.