Rural Real Estate To Promote Farmers' Property Income Efficacy Research

The increase of peasant income is always the core of "Three Peasant Problem". And doing researches on farmers' increasing income has been a difficult and focus issue in either theoretical research field or government sectors. However, the increase of farmers' income has mainly relied on wage income and operating income for a long time. While wage income growth mainly results from the increasing number of rural labor transfer and raised wage level. In the long run, the development space of wage income growth is smaller when compared with operating income, which is restricted by a great deal of factors seriously with greater uncertainty. As a result, its proportion in the total farmer income has been gradually decreased in recent years; unfortunately, due to its special nature, transfer income cannot act as the driving force for the growth of farmers' income. However, there has not been enough attention on the assets of rural financial resources for farmers'property income, especially when compared with developed countries in Europe or America, property income of farmers still has an enormous growth potential in China. Therefore, excavating the potential of farmers' property income is the key point in shortening the gap between urban and rural incomes.This report selects rural immovable property income of farmers as the research breakthrough point. Firstly, it sorts out the relevant literature and presents the explanations of real estate in rural areas, as well as other related concepts and theories, which lay the theoretical foundation for this paper. After that, there will be an analysis on the history and current situation of farmers'income, property and property income in order to understand farmers'current income and the characteristics of property income. Next step is utilizing the 2011 CHFS data from the Southwestern University of Finance and Economics to implement a descriptive analysis on the promotion of effectiveness of farmers'property income that caused by rural production. Then, regression model will be used to analyze the reason that impacts the promotion function of real estate with the selection of index. Finally, policy recommendations of how to enhance the effectiveness of real estate are given with the combination of effectiveness and influence factors for increasing famers' property income caused by real estate.Studies show that the effectiveness of the increased farmers'property income caused by rural immovable is still low. From the property income growth efficiency of house assets (Eh), it shows that the highest Eh is in eastern area but lower in central and western areas; while, there is a significant gap of Eh between city and county, with which in city is around 5 times than that in county. Furthermore, there are obvious regional differences of rural residents received land assets (Ea), with which has a leading position in western region and lowest in central areas. This paper argues that the factors that affect housing assets for property income performance are mainly the location factors and residential land restrictions by law. However, there are significant regional differences on influencing factors of Ea. And the factors that affect eastern, central and western areas are all different with each other.This paper argues that in the process of increasing rural immovable and promoting farmers' property income effectiveness, it is necessary to strengthen the leading role of the government, establish appropriate policies for encouraging rural residents in real estate investment, speed up the revision of laws and regulations, make policies and laws complement with each other and build the real estate transactions market, so that fairness and efficiency get together to inspire the motivation of rural real estate. Because of the different development degrees the government should solve problems respectively based on the characteristics of the different regions. In addition, Farmer's own financial management capability is closely related to their level of education. As a result, in order to enhance the promotion of rural immovable property and the effectiveness of farmers' property income, it is better to increase the basic education, rise the publicity efforts and improve farmers'level of financial management capability as internal driving forces.