| Compensation for land expropriation is explained in a broad way,into which compensation fee to farmers and financial agriculture support in land transfer rent should be included.Instead of discussing on how much to pay to land-lost farmers,this dissertation regards land expropriation as proper benefit distribution of land appreciation not only to individual farmers but more importantly to rural areas and agriculture.The current compensation system for land expropriation has some defects, which can be listed as follows:a) farmer's right neglects; b) improper land expropriation behaviors; and c) land market inequilibrium. The defects also show in many urban and rural contraditions such as high price in urban housing, empty residence in the countryside and less property right housing, ect. Unbalanced development between urban and rural areas leads to differential rent. And the bigger the rent is, the more unbalanced development there exists. Therefore, the compensation system should be reformed based on coordinate development by allocating benefits of land appreciation evenly in urban and rural areas to reduce differential rent between them. The compensation system for land expropriation can be used as a mechanism to adjust and maintain the coordinate development of urban and rural areas.Gradual reform strategies should be adopted. On calculating compensation fees, apart from land original value, the value after utilization change should also be taken into account, which connects compensation fees with land market price. On market construction, rural land market and farmland transfer market should be built based on clarified land property rights, which will eventually lay a solid foundation for a unified land market. On land appreciation regulations, financial agriculture supports in land transfer rent should be normalized, which will increase investments to farmers,countryside and agriculture for a coordinate development between urban and rural areas.
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