An Analysis On The Influence Of Transaction Cost On Land Circulation Price

In order to adapt to the rural productivity development in the new period, to improve the domestic agricultural economic benefits, and to promote the price advantage of agricultural products in the world, our country has set the goal of the large-scale and intensive development of family farms which is promoting the development of modern agriculture in China by expanding the operation scale, reducing agricultural production and operation cost, and upgrading the marketization level. As the trend of agricultural development in the world, agricultural scale management in the form of family farm, which has received high attention from governments and academia, reaches the function optimization in the evolution of rural system through recombination and optimal allocation of production factors. It is the inevitable and only means to achieve large-scale management of agriculture by transferring land contract and management rights from traditional farmers to the family farm. In the process of guiding the orderly transfer of agricultural land, the healthy development of family farms is as important as the interests of the traditional farmers. The land transfer must be conducted voluntarily on both sides. Due to the literacy boundedness and the asymmetric information of farmers, there is complex psychology and interest game in the cooperation between the farmers and the family farms. The key of realizing efficient land circulation lies in the benefit that the farmers get. This paper takes family farms in Jingzhou City as the research objects, analyzes the factors affecting the land transfer price, and discusses the discover degree of the transaction cost on the transaction cost by using the theory of transaction cost. This paper explains how to protect the fundamental interests of traditional farmers in accordance with the orderly transfer of land and the development of family farms.According to the Transaction Costs Theory, based on the related researches and taken the family farms in Jingzhou City as the research objects, this paper makes an analysis on the features of the influences of the transaction costs on the land circulation price. Firstly, this paper analyzes the current situation of family farm development and the features of land circulation in Jingzhou City, as well as the inner relationship between family farm and traditional farmers from the perspective of interest interrelation. Secondly, based on the field research in Jingzhou City, this paper divides the transaction cost into six indexes, that is the circulation time, the circulation object, transaction contract, circulation complexity, circulation duration, and intermediary fee. Thirdly, this paper elaborates the relation and relevant result between the circulation price and transaction cost in the land circulation trade between family farm and traditional farmers. Fourthly, this paper makes a conclusion and purposes suggestions on the cultivation of family farm and improvement of land circulation system.The conclusions are as follows:Firstly, there are obvious difficulties and problems in the development of family farm itself. Which exist in the standardization, agriculture organization and maladjustment of land circulation promotion in scale and quantity. Because of the lack of understanding and concerns of their own interests, traditional farmers are not willing to transact their land to family farm. The hysteresis of land circulation, the spontaneity and randomness of transaction, the instability of transaction price are the important factors which restrict the development of the family farm.Secondly, judging from the rural land circulation market development, although the speed and scale of land circulation showed a trend of accelerated development, the pace is not fast enough, and the scale of operation is rather small, land with finely problem has not been effectively solved. The form of land circulation is relatively flat, the level of concentrated circulation scale operation is still very low, the best allocation of production factors hasn’t realized. The operation of circulation is not standard, the land circulation efficiency has been influenced greatly due to the land disputes of non-standard circulation happened from time to tome.Thirdly, the inner relation between traditional farmers and family farm is that the advance of urbanization and the change of the rural employment structure are factors of the transaction of the agricultural land management rights, which, to a certain extent, solves the problem of the land fragmentation, provides a basis for the agricultural land scale management, promotes the development of the new type of agricultural management main body of the family farm. The development of the family farm further guides the peasants for efficient and orderly land circulation. The precondition of the family farm management is to transact the land management rights from the traditional farmers. The income of traditional farmers is the key to guide the agricultural land management rights to the family farm.Fourthly, the research of transaction costs and the price of land circulation shows that the transaction costs of current land circulation can seldom be measured by currency. Only a few farmers who make intermediary trade will pay a certain benefits which vary in forms and cannot be unified measured. The current land circulation costs can only be described through quality and cannot be measured by currency. In the process of land circulation, the circulation time, the circulation object, transaction contract, circulation complexity, circulation duration, and intermediary fee are the the important factors influencing the circulation price. Overall, the transaction cost of land circulation is low, the price of the land circulation is difficult to find. As a result, land circulation price is generally not high, The function of transaction costs find prices is not strong enough. Farmers cannot get appropriate returns from transfers of land. Land circulation market is still in the initial state.This paper has two creative points compared with the existing research:Firstly, from the research perspective, this paper takes the family farms as the research objects, analyzes the transaction cost and circulation price in the land circulation in China, corresponds with the process of agricultural modernization which can make a deeper analysis on relevant issues from the source. Judging from most existing studies, scholars have focused on land circulation between small farmers, while ignoring that the cultivation of new type of agricultural management is an important factor to the land circulation behavior, which has more realistic significance on the family farm land circulation. Compared with similar research, the logical starting point of this study is closer to the facts of our country’s agricultural development, and the analysis of related problems are more accurate.Secondly, in the previous studies on factors affecting land circulation price, the scholars usually proceed from the perspective of circulation of farm households, analyzing the features of their own, such as the education, the income, the subsistence allowances and so on, and ignoring the influences of transaction costs. The understanding of the problem of land circulation price should go further. This article studies the influence factors of land circulation price from a new angle, with the hope of starting from the specific content and characteristics of the circulation between peasant household and the family farm. This paper divides the transaction cost into six indexes, that is the circulation time, the circulation object, transaction contract, circulation complexity, circulation duration, and intermediary fee. What’s more, this study uses relevant data for empirical analysis to make up the deficiency of existing research to some extent.