Effect Of Land Rental On The Production And Operation Of Different Types Of Farmers

With the continuous development of China’s economy, the demand of labor of urban secor rapidly increases.A large number of rural labor transfer from rural to urban, engaged in non-agricultural employment. The massive transfer of labor lead to gradually reduction of number of the rural labor which is engaged in agricultural production. The mode of agricultural production has changed tremendously. The land is no longer the necessary protection of farmers’survival, and even become superfluous factors of production in some areas.Farmers choose to the excess land subcontract or lease. On the other hand, with the increase in population and income levels,the demand for agricultural products increases continuously improving the efficiency requirements of agricultural production in order to meet the increasing demand for a dwindling supply.In this situation, land rental become one of important way to solve this the problem.The land is the important means of production.Land rental is also the only land transaction in China. Allowing the free flow of land rental between the different producers, on the one hand, is the need of the land market. On the other hand, it has played the role of the allocation of resources and re-adjustmented of land allocating situation between the producers.The producers trade their land based on the market price of land and their agricultural production mode, which have an important role to optimize the efficiency of land resources and to achieve the maximization of land marginal output. Therefore, to study the effect of land rental on the efficiency of agricultural production, has an important practical significance on promoting agricultural development, the rational allocation of land resources, and the development of appropriate policies.Based on the point of view of the land, this paper studies the effect on agricultural productivity rate of land rental. Firstly,Drawing farmer model from predecessors, analyses the impact on the the agricultural marginal productivity of different types of farmers on the land rental and proposed research hypotheses. Secondly, build the agricultural production function model, using household survey data in Jiangsu Province to estimate different land transactions morphology farmers of the agricultural production function by OLS method.Calculate shadow land rent and shadow wages according to the the output elasticity estimated land and labor output elasticity.Finally,compare shadow land rent and shadow wages with actual rent and market wages to verify the hypotheses and propse policy recommendations acorrding to conclusions. The main conclusions of this study are as follows.(1) The land rental increases the marginal productivity of agricultural land.The more the land rented into or out, the higher the marginal productivity of the land;(2) the shadow land rent of out-rented farmers determines the level of the land lease market price;(3) land rental improves farmers labor marginal productivity.The more land rented into or out,the closer the marginal productivity compared with labor market wage.