The Impact Of Farmland Right On Farmers To Finance

Farmland right is general conception of all rights that farmers have relating tofarmland. The various farmland rights have close relationships with rural reformation andrural economic development, even national development. The present farmland rights havebeen implemented more than thirty years and brought a great development to rural economy.However, in recent years, the strict system of farmland rights, having controlled the use ofthe farmland and keeping social stability, gradually exposes its deficiency and cannot adaptto the promotion of production forces. The shortage of funds become one of the factors thatrestraint the rural development. Under such background, the research and practice relatingto farmland rights and finance become thriving. This paper, focused on farmland rights andfinance, do a profound research on how farmland rights effect farmer’s financing.The author studies the present system of farmland rights and concludes that it cannotmeet farmers’ financial requirements. The variation of historical farmland rights reveals thetrend of farmland right development, The comparison of overseas farmland right practicefor farmer’s financing reveals the common regular pattern of farmland right development,which provides reference to China’s farmland reformation and financing. The analysis ofthe value of justification, freedom and order, in farmland rights effecting financing, provesthat farmland financing is consistent with the law value. The analysis of supply-demandand cost-benefit in farmland rights effecting financing demonstrates that farmland financingis consistent with the economic rule. The author also presents the feasibility of farmlandright financing (hereinafter referred to as “FIF”) and introduces the route to realize farmers’financing with the advantage of farmland rights. Further, the author holds that FIF shall befurnished with series of supporting measures. Argumentation for consequences which mayappear, following FIF, indicates that FIF wouldn’t cause the social instability and is therational option for rural development.To route to finance with advantage of farmland rights, above all, we shall make clearthat farmland right includes ownership, contract right and operation right and FIF is tomake use of farmland’s operation right to get funds whereas contract rights to farmlandalways are held by members of collective economic organizations. Secondly, we shallrestrict the farmland to be operated within agricultural purpose and the funds to be investedinto agriculture. Thirdly, FIF shall be furnished with affiliated measures to guarantee itseffectiveness, including improvement of Farmland Registration and Evaluation of FarmlandRights, and establishment of Farmland Exchange Markets etc. Last but not least important,we shall anticipate the negative effects brought by FIF, relieving and preventing it fromharm to farmers by sound FIF. Remedies to farmers losing farmland are supplementary toFIF. Reforming farmland rights, improving farmland utility and resolving farmers’ fund shortage are our realistic option and are the trend of economic development.