The Analysis On Compensation Mechanism Of Farmland Use Right Taking

With the rapid development of the economy, the process of urbanization and industrialization is accelerated continuity and the investment in infrastructures construction is further strengthened. The loss of agricultural land to developed uses has been a public policy issue and the quantity of the construction land has a substantial increase at an astonishing speed. Meanwhile, the complaint about land taking becomes progressively worse and the disputes induced by the compensation mechanism of land taking trend to have adverse effect to the social stability and economic development. Why there are so many questions in the process of land taking? At present, the construction of the rational compensation mechanism for farmland use right taking reflects not only the immediate interests of the general peasants, but also the development of the society. To construct the fair compensation mechanism, it is necessary to define the loss and the risk that the farmer suffered in land taking and identify the decisive factors for compensation mechanism construction.Based on the theory of the property rights of land, the value of natural resource, the risk of farmer, the paper makes the empirical study on the institutional evolution of land taking and the compensation mechanism in virtue of resources economics, ecological economics, development economics, institutional economics, agricultural policy and econometrics. According to the questionnaire and regional inspection, the paper made a study on the decisive factors affecting the farmers'will to farmland use right taking and the farmers'recognition on current compensation mechanism. This will lay the foundations for the construction of the compensation mechanism of farmland use right taking and direct the direction for the coming research. Meanwhile, the paper expands the existed methods of estimating the loss suffered by the farmer and adhere to the principle of fair compensation to the loss. The loss is consisted of two parts:financial and non-financial loss. According to the above analysis, the paper constructs the compensation mechanism of farmland use right taking and defines the principle of fair compensation. This will provide support to the decision-making in future compensation. The main conclusions are as follows:(â…°) The paper analyze the differential features of the farmers in the cognition of farmland use right taking, it can be found that there is a significant difference in the attitude to farmland use right taking among farmers. Based on the questionnaire data which was collected from 302 peasant household in 46 villages of 4 cities in Hubei Province, different features of farmer household are compared. It can be found that farmers who are loath to be taken the farmland use right have the features and characteristics as follows:lower literacy standards, lower democratic consultation recognition, less negotiation support, stronger discontent in compensation, lack of industrial skills and it is rather difficult for them to find reemployment locally.(â…±) The Probit model to analyze the affecting factors of farmers'will to farmland use right taking with the questionnaire data collected from Hubei province. The result shows that the main influencing factors are as follows:the average length of education, the expectation of improved living standards after the taking of farmland, the satisfaction of the family health status, farmers'old-age security and health security, whether the head of a household has the special skills.(â…²) With the questionnaire data collected in the survey, the paper makes a through research on farmers'cognition to farmland use right taking and the need for reform in compensation mechanism with a brief account of the problems in current compensation mechanism. Meanwhile. The paper carries out the key factors of carrying out the compensation mechanism in mechanism demand terms and lays the foundation for the compensation mechanism.(â…³) The paper makes a systematic study on the risk loss in farmland use right taking and the risk loss is classified as financial and non-financial loss. Several simple and clear questions are designed in questionnaire to investigate the cognitive and affective attitude of farmers toward farmland use right taking. The contents are listed as follow:cognition of the ratio of agricultural to total income, cognition of the compensation policy and compensation standard, cognition of the environmental pollution due to the farmland taking and the cognition of the change in daily lives. The farmers were found that there is a lack of understanding of preparation for the risk loss. Meanwhile, the farmer has a clear subjective understanding of the risk loss and has limited ability of risk aversion with own condition.(â…´) The paper calculates the comprehensive loss caused by farmland taking for compensation purpose. The survey found that there is a widespread dissatisfaction among the farmers with the compensation mechanism and therefore the key problem to improve compensation satisfaction is to lay down a scientific and reasonable criterion. For this purpose, the paper summarizes the general characterizations of farmland use right taking in the public interest. Basing on the theoretical analysis for calculating the farmland value, the paper points out the advantage and disadvantage of existing methods and makes improvement in many aspects. The paper estimates the financial loss with improved income capitalization approach and taking the carbon-fixation and oxygen production method to estimate the non-financial loss. By summing up the financial and non-financial loss, the total loss was estimated and then the paper adopts the WTA to estimate the total loss. The result shows that the total loss is 59457 Yuan per mu for three-year's taking.(â…µ) Based on the work done before, the paper analyzes the relationship between land property rights and compensation mechanism makes clear of the compensation subjects are farmer and collective. With the data collected in the investigation, the paper analyzes the cognitions of the farmer and makes a discussion on compensation mechanism to make clear of the farmers'position in the compensation mechanism. With the reference of the foreign advanced experiences, the framework for the farmland use right taking compensation mechanism is illustrated systematically with the principal objective are as follows:a legal mechanism for protecting the rights of the holders of the right to the use, farmland protection mechanism, policies to strength food security and maintaining social stability. Meanwhile, the establishment of the compensation mechanism is also discussed and the basic principles mainly consist of the establishment of compensation standard mechanism, the principle with condensations must adhere to and the formulation of the compensation standard. Finally, the paper seeks the way to realize the compensation mechanism from the following aspects:selection of the compensation method, the way of receiving compensation, the support of non-agricultural industries, the mechanism innovation and the legal protection.