Land circulation can be defined as a situation whereby farmers and landowners hand over their land operation rights so that farmland that is isolated is centralized enabling a thorough and bulk agricultural production (Xianglin, 2014). Circulation of land is considered as a requirement for the expansion of modern agriculture. It not only provides a basis for resource allocation for modern agriculture but also gives economic benefits foundation (Jing & Zhe, n.d.). It is the basis for the improvement of farmland system. It is accelerated mainly by developing industries and speeding up the relocation of the surplus rural labor force. This paper reviews the background, history and the related issues and problems associated with land rotation in China.
History and background of land circulation
The land in the countryside is owned collectively in China. The farmers are given permission to make proper use of land. In such a system, room for land transfer is very limited, which in turn derails modernization of large-scale farming. This instance lives the land to the farmers that move to cities unutilized. However, the government has put in place various attempts to resolve this problem by promoting land transfer. (Kwan, 2014).
History of land rotation in China can be attributed to the implementation of the opening policy and the instituting of new production and social relations. This is dated back in 1978 when the rural household task force was formed. However, the Chinese government barred any kind of land transfer. Even the constitution at the time stipulated that no individual could encroach on agricultural land or circulate it illegally through leasing, buying or selling. Land circulation emerged during this period and was carried in black-market. The central government permitted the transfer of agricultural land in 1984 under given circumstances. Eventually, land distribution was made legitimate in 1988 after the amendment of the constitution (Yuneng & Bo, 2011). In addition to that, the law of land markets in 2006 that was made possible by the tax reform created the land circulation in China. This allowed the transfer of rights associated with land use enhancing the achievements of land reforms.
In 2013, the rural land rotation was highly encouraged and put forward. The central government considered it one of the primary tasks that are in line with the ongoing reform program. As one of the changes related to land, land circulation resulted in heated discussions at the yearly sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference. Questions regarding the kind of changes that the policy will bring have been raised. How will land circulation develop agriculture and improve the farmers’ lives?
Issues and problems associated with land circulation.
The following problems are associated with land circulation.
Uncertainties and complicated mindset towards land distribution. Most farmers have not known the stability of a household agreement responsibility system. Some farmers combine the household agreement with land circulation believing it is a modification of contract land. Consequently, such areas do not practice land circulation. Despite the circumstance that the employment of farmers is showing a diversified trend, the ratio of agricultural income is diminishing year by year. The farmers in China consider land as the most reliable social security. Some people, farmers in particular who work outside would rather live their land unproductive than circulate it to others. This is because they are afraid of losing their income. Thus, they take land as their security. These complicated mentalities and misgivings make farmers unwilling to circulate land even when they are unable to cultivate it. Most people retain land that they do not use as a livelihood and old age security. Such land would be put to proper use if it were circulated (Cong-guo, 2010).
Secondly, the social service system associated with land transfer process has not been formed. The intermediaries of this process are underdeveloped leading to village and township units taking control. This has resulted in low efficiency and fairness levels during the practice. For their interests and political interference, the village units convert land intended for farming into waste causing misuse of land resources. In some instances, peasant households obtain land through circulation change and use it for short-term benefit. Additionally, the transfer of land is being done within a small range, which in turn hinders the movement at a higher level (Cong-guo, 2010). Factors such as arbitration, counseling, intermediary services and notarization for the circulated have not been fully established.
Thirdly, there is a flawed risk prevention tool for distributed land use. Without an appropriate risk prevention mechanism of the process, land circulation can hardly be implemented because of the huge operation risk. Thus, it is hard for circulated land to achieve its intended purpose. Investigations have shown that most peasant households are scared of natural disasters and change of policy. Others are afraid of the rise in input price and less profit. This indicates that physical and market risks are not conducive for land rotation (Cong-guo, 2010).
In addition to that, the circumstances for reimbursement that are given when the local administration expropriates land are inferior in the rural areas as paralleled to urban regions. Moreover, most of the laws that govern compensation are ambiguous. Agricultural land grabbing by the government is increasingly becoming a big social ill. Frequent outbreaks of demonstrations by farmers are evidenced across China (Kwan, 2014).
Solution to land circulation problem
The definitive way of solving these evils is by promoting privatization of agricultural land. This means the Chinese government must provide privileges over farmland. This includes the right of ownership for farmers. However, opposition from local managements that is creating obstacles so that they can take as much income as they can from the farmers is derailing the whole process. This has made the prospect of privatizing agricultural land to become minimal. Given this grueling background, experiments are being carried out throughout the country to make proper use of land by encouraging land transfer. The principle of mutual rights for ownership has been adhered to accordingly. These experiments cover both agricultural and shared building land in the rural areas. However, the emphasis is mainly on farming land.
References
Xianglin, X. (2014). Land circulation can stimulate China's rural reform - China.org.cn. China.org.cn. Retrieved 14 April 2016, from http://www.china.org.cn/opinion/2014- 03/09/content_31708204.htm
Kwan, C. (2014). China in Transition「Rural Land Circulation in China Gaining Momentum: The increasing role of trust companies」. Rieti.go.jp. Retrieved 14 April 2016, from http://www.rieti.go.jp/en/china/14030701.html
Jing, L., & Zhe, W. Effects of Land Circulation on the Development of Modern Agriculture. Ideas. Retrieved from https://ideas.repec.org/a/ags/asagre/58612.html
Cong-guo, L. (2010). Countermeasures and Investigation of Land Circulation in Less Developed Agricultural Area (2nd ed.). Henan. Retrieved from http://ageconsearch.umn.edu/handle/93671
Yuneng, D., & Bo, S. (2011). The Development of Chinese Agricultural Land Transfer System: Transaction, Concentration, and Commercialization. Journal Of Agricultural Science, 3(3). http://dx.doi.org/10.5539/jas.v3n3p269
Nabuco, P. Capitalist Accumulation, and Land Circulation China — Historical Materialism Journal. Historicalmaterialism.org. Retrieved 14 April 2016, from http://www.historicalmaterialism.org/conferences/annual9/submit/capitalist-accummulation-and-land-circulation-china/
