Institutional Study On Farml And Circulation In China

The so-called land circulation, currently, in China mainly refers to the circulation of the contract-management right on farmland. The farmers who have the contract-management right transfer the right of management (right to use) to other farmers or economic organizations (enterprises, the communities, etc.), which means to transfer the use-right, retaining the contract right. Land circulation is the specific economic behave reflected by the price of the use-right circulation on the principle of market-based exchange.In a long time, economic efficiency of agriculture declining, farmers have moved to non-agricultural jobs with a great amount of land desolated. While the industrialization of agriculture and scale production require the land centralized. Land circulation system is needed to realize the potential economic benefits. In recent years, the government has also continuingly adopted the policies to promote the development of circulation market. It can be said that the market of land circulation has begun to take shape. But no matter the size or the degree of market-oriented, it's generally at a lower level. There are also a series of problems, as the circulation market developing slowly, circulation inefficient, informal circulation between farmers resulted in lots disputes, the government intervention against the interests of farmers.Contract-management system is the basic land-use system in China's country, whose basic characteristics also determine the scope and nature of China's circulation system. Contractor-management-right performs as a de facto ownership, but still not complete, certain restrictions set on the transfer and the use, which also characterized by the "right of members".The feathers of China's current status of rural land property have: land-use system gone diversity; the title of ownership fuzzy; and the uncertainty of the content of property rights. All these factors have hindered the circulation development at some extent.Property is not the only factor to explain the predicament of the land circulation. It also faces much more fundamental restriction in economic reality and social system. In this paper, it's been analyzed from three aspects: First, the land regular adjusted, which means that the allocation of land has often been made changes and adjustments administratively to adapt to the change of community population, to make sure that everyone average land, which has become the prevailing institutional arrangements. The results of the arrangement are: the uncertainty of land use time and limited scope of property rights movement. In the perspective of investment expectation, the land adjustment would reduce the expectation of land users in the future stability and prevents the farmers lease. However, in the survey it's found that this negative effect is not significant, and helping the promotion of the short-term circulation. The point is that this adjustment like to reduce the efficiency of land circulation, and not conducive to the sustained and healthy development. Second, land has the function of secure for farmers, which is the main cause for the adjustment to reflect the wishes of the majority of villagers. The function, at large extent determined the existing land use system. Most farmers still depend on the land as the main source of life and income. In a long time, there's lack a sound social security system for rural residents. In the situation of without a stable channel for non-agricultural employment, land has been the most important life dependence and security preventing from the risk. Land's security function make rising costs of land circulation, hinder the supply of land for circulation.Third is the analysis about transaction costs and the organizations. Transaction costs in farmland circulation process mainly featured: Limited scope of circulation in certain community conducts to higher transaction costs in the search of information; Informal circulation easily leads to disputes over land; Country committee always harm the interests of farmers an land. There are two different types of organizations involved in the land circulation process: village committees and the market-based intermediary organizations. The former in rural China is the most important and critical collective organization, in the circulation of land plays a critical role. As one intermediary or supervisor, it effectively lowers the cost of trading. But the rest-seeking behavior seriously harmed the interests of farmers. The latter mainly has been the bridge to link the land supply and the need. However, there are still too many administrative factors. Now its'quantity is few, and the poor skill in land evaluation, pricing can not meet the needs of the market. Finally there have some suggestion made from three aspect. First, perfect the property rights system, stabilize the land ownership. The law should clearly define the property right, to stabilize the contract-management right.The core material is real right to farmland contract-management right. Then, to establish diversity land use system. Equity business model is a good choice. Second, form intermediary organizations of land circulation. The core is to weaken the administrative power of the rural collective organizations, and to guide farmers to establish their own economic organizations, which will help build a harmonious and orderly land circulation market. Final, the government should try to cultivate the main circulation bodies. On the ground of land system reform, doing a series of reforms to build and improve the farmland circulation market. 1. Mature the rural social security system, weakening the social function of land. 2. The transfer of rural labor force is the fundamental way to expand the scale of agricultural operations. Only when the rural labor forces have achieved a stable, mass transfer, it's possible to speed up the process of rural land circulation. 3. To increase agricultural economic efficiency, by stable agriculture investment and other supporting industrial policy.