China's Rural Land Circulation And Its Financial Support For Research,

The rural land transfer is one of the breakthrough points at the present stage for the economic development in rural areas. From the perspective of macro-policy, the government has laid down some related policies to guide and support the rural land transfer in recent years. At the same time, Chengdu and Chongqing have been approved as "The Experimental Zone of Comprehensive Reform to balance Urban and Rural Development", aiming to explore appropriate model for rural land transfer.In China, the majority of the population is still farmers, therefore, it has an important strategic significance to promote the rational and orderly flow of rural land, and raise the income of the farmers steadily.Fundamentally, in order to solve the problems in rural areas, rural land issue must be settled first. This paper tries to analyze the issue from the perspective of finance, for the rural land transfer is inseparable from the capital support and financial institutions also should play an important role in this field. The financial support problem for rural land transfer is a new issue emerging at this stage and the current researches on this issue are rare, so this paper is valuable not only in practice but also in theory.Through the analysis of practical research data, the paper reaches the conclusion that China's current agricultural production is a typical small-scale the-farmer economy and in this system agricultural production could not produce the social average profit, therefore, it is impossible to attract financial institutions to participate in agricultural production by relying solely on the strength of the market economy. However, the rural land transfer needs funds urgently, so the government must give substantial support during this process, encouraging farmers to undertake a comprehensive agricultural cooperation, expanding the trade areas of farmers and improving the trade conditions under the support of the government, so that the agriculture can have access to the social average profit and supply the precondition for real integration of financial capital and agricultural capital, then make the financial capital participate in every aspect of agricultural production, which of course includes the process of rural land transfer.This model mentioned above has been successfully implemented in Japan and South Korea, so it is also known as "Japan-Korea model". China is carrying out the agricultural modernization based on smallholder agriculture which is similar to Japan and Korea, so it is a valuable model for China to learn to alleviate serious shortage of funds for rural areas and strengthen financial support to rural areas.