Study On The Pricing Mechanisms Of Chinese Farmland Circulation Under The Restriction Of Property Rights

Any country which aims to evolve from a developing country to a developed one would go through the urbanization process. And it manifests itself as a process of rural labor force migrates to cities, which brings in dual economic structure. Reform in economic structure is pushed by the deep social contradictions derived from the dual structure in urban and rural economy. And farmland circulation is the basis of deepening reform which could not be avoid. Farmland circulation in China is more complicated than that in western developed countries, just because of the special farmland property right system in China. In practice, separate peasants do not have advantages either in information or in negotiation, and business entities’ always have the final say. They have an opposite stand against the peasants, and have no driving force to protect them, while government wants to, but lacks scientific pricing theories. All these things left peasants’rights and interests being harmed. This thesis studies the pricing problem with the property right restrictions, and aims at contributing to both the theory and practice of Chinese farmland circulation. Based on theories of property right economics, behavioral economics, welfare economics and political economics, this thesis comprehensively applies methods of system analysis, history and literature research, observation and investigation study, qualitative and quantitative analysis, micro and macro analysis to study the pricing problem of farmland circulation. Starting with study on how the demand and supply players make their decisions, it analyzes all the revenue and cost accounts of the players, establishes the supply and demand models based on their optimal decision, and finally solves the equilibrium price of the market model. With analysis, deduction and reasoning, it finds no matter how many items people consider, the ones really account are the differences between separate and scale operation in agricultural technology, labor quantity per unite area and cost per unite area. Taking the outflow of peasant-workers into consideration, the circulation decision might also be influenced by the wage difference offered to them. In the empirical part, this thesis takes Huaibin County in Henan Province as an example, analyzes the pricing method and price levels in practice, calculates the theoretical price according to the above mentioned pricing model, and concludes marketization in circulation will definitely promotes farmland price. In order to implement this optimal allocation price, measures should be taken to resolve the farmers’concerns and the new operators’ concerns, including innovations of circulation modes, labor exports, skill training, establishing the rural pension systems, deepening rural financial reform, speeding up agricultural insurance popularity; at the same time, the authorities should be aware of the non-nonagricultural and non-food phenomenon in circulation practice.