An Analysis Of The Relevance Between Legitimacy Of The Rural Contracted Farmland Circulation And Profit, And The Reasons

After carrying out reform and open policy, China has implemented the system oftwo-layer management manner based on family, allowing farmers relatively independentcontract for the managerial right, which has been stimulating them a lot. However, with thedevelopment of economy and urbanization, some phenomena occurred, such as small landper capita, land fragmentation, farmers’ coming into cities, etc. All of these brought aproblem, low land production efficiency. As a result, the circulation of rural contractedfarmland became the pace of China’s agriculture development. In1988, LandAdministration Law regulated that the use right of city land and rural contracted land isable to transfer. From then on, the circulation has accelerated, including numerous illegalcases.Through the analysis of illegal cases around China in recent five years, we found thatthere was a lot of them whose illegal profits were equal even less than the legal ones. Thiswas not a rational situation, because illegal profits needed to compensate the risk. We willdo a further research on those cases and find out the reasons. Then some advices will begiven to control illegal circulation of rural contracted farmland.First of all, we surveyed four areas, including Suqian, Chengdu, Anji and Shaoxing.Then put the data into a cost-benefit model which based on the theory of crime economics.Finally, we found the reasons of the irrational situation, such as indeterminacy of landownership, information asymmetry of land market, government enforcement, lack of legalknowledge, increase income of farmers, etc. According to these reasons, we came up withsome advices, like heightening law awareness, improving the supervision system,perfecting land market, etc.This research is based on both theory and study of cases. However, there are alsoflaws, for example, the limited date, insufficient analysis. We need to improve our researchin the future.