Research On The Development Of Agricultural Land Lease Market

China agricultural land policy has experienced several changes since theestablishment of the People Republic of China. Until thirty years ago, the householdcontract responsibility system was built and brought vitality back to China agriculture. Thedevelopment of agricultural modernization is in urgent need at the present, but high degreeof fragmentation of land distribution which the rural household contract responsibilitysystem brought about, making our agricultural land difficult to achieve an appropriate scale,and thus hinder the process of agricultural modernization. To solve this problem, thecirculation of agricultural land has become an important topic of academic concern.Especially in recent years, agricultural land transfer has become a policy focus. As a veryimportant way of agricultural land transfer, lease of agricultural land causes minimal impactand influence to our existing system of agricultural land. It can bring the realization ofChina’s agricultural land resource more efficient redistribution, and it is also effective way tomoderate scale management of agricultural land. At present, although the behavior ofagricultural land leasing in China’s vast rural areas have been common, the scale is stillsmall. We can say that China agricultural land rental market is not perfect yet, still indevelopment.So in this article, farmers’ agricultural land lease behavior is regarded as an entry pointto study factors affecting the development of China’s agricultural land rental market.Through the survey of Hua County and Yanling County in Henan province, seven ruralareas, fifteen villages, two hundred and fifteen peasant household included, we found thattransaction costs is the most important factor which affects farmers taking part inagricultural land lease market. So, foundation of agricultural land lease transactionsintermediary service organizations is very important. In addition, such as the establishmentof mechanisms to mitigate risks and the perfection of agricultural land rental market tradingrules are also the important ways to reduce agricultural land lease market transaction costs.