The Analysis To The Institutional Factors Influencing Agriculture Income Of Farmers

Income from agriculture is essential part of farmers' income. This paper builds a simple mathematics model to analysis the basic factors that influence income from agriculture. These factors are physical capital, human capital, technology change, the level of specialization and the quantity of farmers. Furthermore, on the basic hypothesis that farmers are rational economic men, it points out the negative attitude of farmers on improving these factors is rational choice. The actual land system, social security system and hukou system conduce that the property right of land is instable and difficult to be exchanged, the quantity of farmers is unable to decrease. As a result, farmers have a negative attitude to improve these factors. Therefore, in order to increase farmers' income from agriculture, we should reform these systems. Considering the close relation of these systems, I bring forward an integrated reform scheme. The core of its content includes: 1. reforming the hukou system completely to make farmers migrate at liberty; 2. nationalizing the land, giving farmers the permanent tenancy rights ; 3. farmers who can earn stable non-agriculture income exchanging the primary permanent tenancy rights for the account in modern security system with government; 4. government selling the permanent tenancy rights, farmers who get the secondary permanent tenancy rights being granted the right to exchange the rights freely to carry out the reasonable allocation of land resource.