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The Potential Supply and Demand of Farmers’ Land Contract Rights-Based on 697 Households in Four Provinces of China

Author

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  • Wujing Wang

    (National Agricultural and Rural Development Research Institute, China Agricultural University, Beijing 100083, China)

  • Xingqing Ye

    (National Agricultural and Rural Development Research Institute, China Agricultural University, Beijing 100083, China
    Research Department of Rural Economy, Development Research Center of the State Council, Beijing 100010, China)

Abstract

A new urbanization and rural revitalization strategy has been implemented in China over a number of years, under which farmers’ land contract rights (LCRs) flow inevitably through various means. The practice in reform pilot areas indicates that government funds cannot meet all the needs, so exploring market-based LCR payout paths is important for rural land tenure system reform. The purpose of this study is to answer questions such as the following: How would farmers respond if they were allowed to trade LCRs? Is there an equilibrium point between the potential supply and demand of LCRs? Which factors would affect the potential supply and demand of LCRs? In this study, 697 valid questionnaires from Ningxia, Hebei, Henan, and Shandong provinces, China, were used for analysis by the multiple bounded discrete choice (MBDC) method and MBDC-Tobit model. The results show that there is a potential market among rural collective households in China, with an equilibrium price of ¥27,800/mu ($59,714.4/ha), and a proportion of farmers who are willing to buy or sell LCRs is around 10.0%. The factors affecting the potential supply and demand of LCRs include land grade, average agricultural income per unit, total money to buy urban houses and cars, age, number of household members with a college education or above, and risk appetite. If the institutional barriers that hinder LCR transactions were eliminated, the potential supply and demand of LCRs would be matched, and the market would provide funds for next-stage reforms.

Suggested Citation

  • Wujing Wang & Xingqing Ye, 2020. "The Potential Supply and Demand of Farmers’ Land Contract Rights-Based on 697 Households in Four Provinces of China," Land, MDPI, vol. 9(3), pages 1-21, March.
    • Handle: RePEc:gam:jlands:v:9:y:2020:i:3:p:80-:d:330748
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    References listed on IDEAS

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