An Analysis On Securitization Of Rural Land

Theory and Practice has proven that it has become very difficult to solve the"agriculture, countryside and farmers" problem completely in the existing system,institutional innovations have become the only way out. Promoting rural land useright system reform is the best way to the implementation of the Rural LandSecuritization.In China's rural land system and the corresponding legal and regulatoryframework, China's rural land securitization means securitization of the landcontracted by farmers, that is, Rural land contract right or the income generatedfrom the contract land should be transformed into financial products which can flowin the capital market, including several ways such as mortgage rural land, Rural landstock cooperative system, Mortgage bonds of rural land. securitization of rural landadapt to rural land reform, protect the stability of rural areas; Pooling funds from thepublic, improve agricultural productivity; promoting land management; achieve scaleand efficiency and land intensive management; provide the government with a newway to control agricultural indirectly; Prosperity of the financial market and attractforeign investment.However, in China's current laws and regulations, and the status quo under theconditions of the rural, there are all sorts of restrictions and obstacles hampering thedevelopment of rural land securitization. Therefore, we should use real theory to theexisting norms of rural land contracting system, and further improve legal system inrural land, improve rural financial markets, increase rural human capital development,try to establish a regional Trust Securities, Trust markets and agricultural land priceindex system, improve policy environment and develop "agriculture, countryside andfarmers".As a rural financial system, rural land securitization not only gathering funds ofagricultural development more importantly, but it trigger a series of innovation ofrural institution. Especially, the innovation of rural land system, is of greatsignificance to overcome the problems of agriculture development.