With the acceleration of urbanization, more and more agricultural lands havebeen transformed into construction land through levy, as a result, a series of problemsemerges, such as the compensation standard for land expropriation is too low, it is difficultto live and employment for part of land-lost farmers and the implementation of partmeasures for social security is not best and so on. The reason is that there are contradictionsbetween the planning of the current land expropriation compensation and the marketabilityof the existing economic systems. The characteristic of market economy is to make all theelements of entering the market to realize its rational allocation. The reasonableconfiguration of land cannot achieve without market forces. So, the author of this papercome forward some ideas, and the contents are that the government’s administrative poweris needed to rely on in the early period of the land expropriation, monetary part of the land expropriation compensation should be measured based on the market, and the powerful support in landless farmers’ life is the measure of social security.In this paper, the land expropriation compensation consists of monetary compensation and policy compensation. The monetary compensation includes land compensation fees, resettlement compensation fees and compensation for attachments to or green crops on the land. The policy compensation refers to the social security policy. The land compensation fees are the correction result of the area price which is calculated through the income approach and stand for the use right of agricultural land. The net benefits of farmland is the predictive value which is calculated by using the grey system forecasting model GM(1,1) in the income approach. Resettlement compensation fees with temporary additional monetary subsidies, which calculated by the landless farmers’ life consumption cost, together with the social security ways constitute a flexible arrangement of social security, insteading of the social security function of land to farmers. The above content is based on the main problems appeared in the making process and performance of current land expropriation compensation, the flaws of the comprehensive zone price of land requisition’s concept connotation, rent of land theory, property rights theory, externality theory and theory of fairness and efficiency.The paper analyzes the measure of the monetary compensation and application analysis of the policy compensation by taking Henan province for example. By putting the new structure of land expropriation compensation compared with the current land expropriation compensation, come to the conclusion as follows:The new structure of land expropriation compensation is more clear than the current structure of land expropriation compensation, pay more attention to the role of market mechanism and the arrangement of the social security system, and more conducive to the landless farmers’ long-term livelihood maintenance from the content. The current land expropriation compensation levels to meet the landless farmers only 61% of the cost of rural life, 35% of the urban life consumption cost, while the new structure’s level reached 145%, 83%. The less than 17% of the cost of urban life gap can make up for through the policy compensation in terms of the price level. The calculated results show that the new structure price’s level is significantly higher than the current, reached an average of 2.4 times. And the new structure for consumption cost of landless peasants living in town has a higher satisfaction, which is more reasonable than the current. The new structure and price level of land expropriation compensation is more scientific and marketability than the current land expropriation compensation, and can provide a reference for the reform of the system of land expropriation. |