Research About Transaction Costs In Agricultural Land Circulation

In order to develop modern agriculture,the only way is by means of land transfer to achieve agricultural scale, efficient operations. However, despite the national policy support, the overall national land transfer is not very efficient. The reason is that in the process of transfer of agricultural land, the high transaction costs in information searching, contract and contract execution has hindered the agricultural land transfer transactions.New institutional economics believe that the zero transaction costs are non-existent in reality. At every stage of rural land, the transaction costs are inevitably. Farmland Property System, village governance system, circulation of agricultural land and agricultural land transfer subject behavior patterns are affecting the transaction costs in a number of way. Meanwhile, the immovability and exclusiveness of agricultural land has increased the transaction costs of the transfer of agricultural land, and it has led to the disproportionate share of transaction costs. Therefore, reducing the circulation of agricultural land and a well balanced sharing of costs at all stages of the transaction is beneficial to transfer of agricultural land.Wuhan has established a specialized agricultural land transfer Trading Platform-Wuhan Integrated Rural property rights exchange, and it has greatly promoted the transfer of agricultural land in Wuhan. Through empirical case study, we found that Integrated Rural property rights exchange has played a great role in searching for trading object, promote the deal and its security. By providing a trading platform,integrated Rural property rights exchange has not only reduced the information search costs, and also decreased the negotiations costs because of the simplified transaction process and negotiation frequency. Transfer contract through Integrated Rural property rights exchange could guarantee the effective implementation of agricultural landtransfer contract because of the good support mechanism.The practice in Wuhan Integrated Rural property rights exchange has proved that the stable and clear agricultural land property rights, intermediary organizations involving and providing "standardized" products is a great way to reduce transaction cost and it's meaningful for promoting the circulation of agricultural land. In future,under the premise of further clarifying land property ownership, by the establishment of specialized agricultural land transfer trading platform, improve land collateral supporting measures of mortgage, reducing the barriers of transfer of agricultural land with better policy and operation, it is helpful to reduce the circulation of agricultural land transaction costs and promote the transfer of land, and create conditions for the realization of agricultural modernization.