Wednesday, 18 March 2009
Zhejiang farmers given approval to lease out agricultural land
Farmers in Zhejiang can now lease their allocated plots of land to other farmers simply by signing a government-endorsed leasing contract - a move that could generate up to 1.3 trillion yuan (HK$1.47 trillion) in capital in the province’s rich countryside.
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Zhejiang farmers given approval to lease out agricultural land
Al Guo
18 March 2009
Farmers in Zhejiang can now lease their allocated plots of land to other farmers simply by signing a government-endorsed leasing contract - a move that could generate up to 1.3 trillion yuan (HK$1.47 trillion) in capital in the province’s rich countryside.
The new land-lease regulation, announced by the Zhejiang government on Sunday, is part of the much-anticipated rural land-reform framework unveiled in the aftermath of the Communist Party’s congress in 2007.
Although the state owns all land on the mainland, farmers obtain permits to use their land, which typically last 30 years.
The new regulation simplifies the leasing-out procedure, and the renewal of the contract is the permit holder’s option.
“The new rule guarantees farmers will maintain all the rights over their land while making a profit by leasing [parcels] out,” China News Service quoted Zhao Xingquan, deputy director of the Zhejiang Bureau of Agriculture, as saying.
The new rule in Zhejiang, and similar rules released in municipalities such as Beijing and Chongqing early this year, reflects the central government’s intention to let lower-level governments work out the details for their own rural economies. Zhang Jun, a researcher with the Chinese Academy of Social Sciences’ Rural Development Institute, said there was no one-size-fits-all solution to the leasing issue.
“China is geographically too big, so no detailed [land-leasing] policies could fit every situation,” Dr Zhang said.
“The central government certainly wants regional governments to roll out their detailed plans at a pace that they feel comfortable with.”
Zhejiang’s rural economy has long been among the mainland’s most fertile, thanks to its 870,000 sq km of arable land and prosperous private sector. The 1.3 trillion yuan figure in potential revenue came from provincial government estimates cited by China News Service.
Mainland farmers have traditionally been allocated around one mu, or 667 square metres, per person and the small size of the plots can make it hard for farmers to make a living.
As urban development has drawn more and more farmers to cities for work in recent years, productivity on farms has plummeted.
Dr Zhang said allowing farmers to put small plots together and work on a bigger scale would enable better use of advanced technology to increase output.
“For a country with limited land resources such as China, growing crops collectively is one of the best ways to improve land-use efficiency and boost crop production,” he said.
For now, land-lease deals will be allowed only between farmers, to stop private capital entering the sector. Zhejiang authorities said the restriction was “designed to protect farmers’ interests”.
Dr Zhang said the ban on non-agricultural capital was to protect the reform because nobody knew what the impact of the changes would be.
“In the long run I think the ban [on private capital] will be abolished because the government’s aim is to protect farmers’ interests and better use land,” he said.
“I can see no conflict in private capital in other areas.”
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