The Impact Of Trust On Agricultural Land Transfer Contract Choice

As the rural land contractual management right is one of the most important property rights of farmers at present,a written contract expressly seems to be a matter of course for the transfer of agricultural land.Written contracts on the transfer of agricultural land are required by national laws and regulations,and demonstration land transfer contract are used by farmers for free in many places,while as a matter of fact written contracts are of low percentage and the term of transfer tended to be short-term,which turmed out different from national policy orientation.As a consequence,it is helpful to know the features of agricultural land transfer contract deeply and promoting agricultural land circulation market regulation and orderly development by analyzing farmland transfer contracting behavior of different farmers basing on Chinals national conditions,elarifying the main reason for the prevalence of short-term verbal contract dxuring the transfer of agricultural land and studying in which kind of agricultural land transfer mode can the written contracts be more funmctional.In view of this,according to the main object of farmers,the research constructed a theoretical framework of 4“the level of trust-transaction costs-choice of agricultural land transfer contract",analyzed the effect of the degree of trust on the costs during the process of agricultural land transaction,discussed the relationship between transaction costs and the contract of agricultural land transfer,and then verification the effect of the level of trust on contract of different transfer mode.Based on the target,this paper includes the following sections:Chapter 1 mainly includes research background,the significance,objectives,contents,methods and technical framework of the paper.Chapter 2 mainly generalized the research progress on agricultural land transfer contract,agricultural land transfer mode,transaction cost theory and other areas by Literature Review.Chapter 3 empirical tested the impact on contract of agricultural land transfer by the level of trust in non-governmental-led agricultural land transfer mode with biprobit model,basing on the survey data of the turn-out and turn-home households in Jiangxi province and Liaoning province.Chapter 4 analyzed the impact on contract of agricultural land transfer by the level of trust in govemmental-led agricultural land transfer mode,based on the typical cases of Dong town in Jiangxi province,and Shenyang city in Liaoning province.Chapter 5 presented policy recommendations by summarized the research findings.The main conclusion of the study includes:(1)The level of trust had an outstanding positive effect on the contract selection of roll-out households in non-governmental-led agricultural land transfer mode,which meant that roll-out households would had a greater possibility of choosing oral contracts with higher level of trust between both sides;while the level of trust had an outstanding positive effect on the contract selection and the term of transfer in the turn-in model,which meant that there would be a greater possibility for hurn-in households of choosing short-term oral contracts when the both side of transfer shared a higher level of trust.(2)In the mode of Government-led agricultural land transfer,diversified transfer objects(including cooperatives and enterprises and so on)occured,which led to interests disputes during the farmland transfer process,as the "outsiders" came up with lower level of trust.As a result,formal written contract with fixed period were signed in government-led farmland transfer in order to reduce the transaction costs caused by uncertainty,avoiding the risk of circulation,reducing supervision and maintaining trade order.Policy Implications are as follows:(1)The agricultural land transfer ought to be standardized,while the management and services should be strengthened,in which way the farmers' rights to choose can be fiull respected for and take advantage of by adopting different policies in different circulation patterns.(2)It is important to improve the legal awareness of farmers by strengthening legal education.Meanwhile,the standardization of written contracts must be promote gradually in rural areas in order to elimination the understanding of farmers that written contract as“in the form of contract”.(3)The authority of village collectives and grassroots governments should be under strictly control,whose social service functions should be strengthened at the same time,in order to improve the trust of both sides in land transfer on the village collectives and grassroots govenuments.