A Study On Rural Land System In Agricultural Marketization In China

Rural land system is the core and foundation of rural economic system. Whether we can properly arrange rural land system or not will affect the development of agriculture and rural economy, as well as the harmonious development of the whole national economy. In agricultural marketization, agriculture comes to an inferior status. So it is urgent to make an innovation.Basing on the theory of property rights and transaction cost of new institutional economics, the paper analyses the property rights of rural land. We also apply the method of comparison to analyze the principal part of market, government's failure vs. market's failure.Though analysis, we figure out, under the circumstance of China's system of village-level land reallocation,?rural land belongs to collective economic organization which has not the qualification of corporation, so it is difficult for farmers to become the genuine masters of rural land. Blurry property rights resulted by ownership of collectively-held land offer opportunities for villager committee and skeleton government to deprive farmer-held land and incomes of land, so a lot of infield resources are impropriated and expropriated, and farmers bear burden heavily, and it is difficult for them to own the rights of land contracted long and steadily. For collectively-held land, inter-local trades of rural land for farmers are restricted. The outcome of analysis also shows that the mode of house-level farm is more efficient than that of agricultural enterprise. In agricultural marketization, the principal part of market should not be government, but be agricultural producer. And there is a government failure in the present process of rural land management.In my opinion, aiming at the problem of rural land system itself and that emerging in functioning process of rural land system, in order to adapt the requirement of agricultural marketization and put the system into effect to increase farmer's income, government should take back collectively-held land, and take forever-contracted rural land system instead the contracted rural land system, and endow farmer with whole and forever property rights of tenure, as well as establish systemic laws of rural land system. We should also transform government functions and establish organizations to protect farmer's interest?progressively.