Rural areas are about to distribute money - take a quick look and see if you have a share!
In January this year, the central government issued the "Opinions on the Pilot Work of Rural Land Expropriation, Entry of Collective Operational Construction Land into the Market, and Reform of the Homestead System," proposing to select about 30 regions nationwide to carry out pilots. On February 25, the list of pilot areas was announced, which means that the reform of rural land expropriation, entry of collective operational construction land into the market, and the homestead system, which concerns the vital interests of those of us in agriculture, has begun! And with operational construction land entering the market, farmers can enjoy the gains brought by the appreciation of collective land, and getting money from the village committee every year is no longer a dream!
How will these areas be reformed?
Land expropriation compensation standards will be greatly raised
Policy interpretation: With economic and social development, more and more land is being expropriated. In terms of compensation to farmers, the state stipulates that the total of land compensation fees and resettlement subsidies shall not exceed 30 times the average annual output value of the land in the 3 years before expropriation. If compensation is made according to the use of the land for agricultural grain cultivation, based on an average gross income of 1000 yuan per mu, 30 times per mu is only 30,000 yuan, but after expropriation and construction of buildings, one square meter sells for 5000 yuan! After the reform of land expropriation policy, the land expropriation compensation standards in pilot areas will not be limited by the “30 times” rule, but will instead be based on reasonable compensation standards formulated according to land use and location, level of economic development, per capita income, and so on.
Business opportunity forecast: Eligible farmers whose land is expropriated will all be included in the urban social security system for pensions, medical care, and so on. Where conditions permit, various methods such as retained land and retained property may be adopted and operated by rural collective economic organizations. Through various methods such as self-expropriation and self-use, land retention for resettlement, and dividend participation, farmers can share in more gains from land appreciation. Likewise, when investors' land is expropriated, they will also obtain more gains than before!
Operational construction land entering the market will appreciate
Policy interpretation: In recent years, a large part of the fiscal revenue of some local governments has relied on “selling land,” but land resources are ultimately limited. Some cities need to incorporate some surrounding rural areas during expansion, and this is one of the demands for rural collective operational construction land to enter the market. Pilot areas allow the use rights of existing rural collective operational construction land to be transferred, leased, or used as equity, and to enter the market with the same market entry, same rights, and same price as the use rights of state-owned construction land. Farmers can use various methods such as transfer, leasing, and equity participation to preserve and increase the value of collective operational construction land!
Business opportunity forecast: The appreciation of collective operational construction land in suburban areas will drive up the value of farmers' contracted land. To bring out the greater value of land, farmers can use new agricultural operating organizations such as cooperatives and family farms to develop large-scale planting, reduce input costs, and increase overall returns, further safeguarding agriculture's ability to withstand risks.
Homesteads can sell for a good price
Policy interpretation: Homesteads belong to rural construction land. Under current legal provisions, the conversion of general agricultural land into construction land is generally approved by the provincial, autonomous region, or directly administered municipality government. After reform of the homestead system, in pilot areas, it is clearly specified that the use of existing construction land shall be delegated to the township (town) people's government for approval, and the use of newly added construction land shall be delegated to the county-level people's government for approval. Homestead withdrawal shall be voluntary and compensated, and transfer shall be limited to within the collective economic organization itself, to prevent urban residents from going to rural areas to buy land and build houses. Henan Province already issued a policy in January requiring all cities and prefectures to establish rural homestead withdrawal fund pools, granting one-time economic subsidies to farmers who voluntarily withdraw from homesteads and no longer apply for new homesteads.
Business opportunity forecast: Homesteads can only circulate within the collective and cannot be sold to urban residents, meaning they cannot enter the market! After farmers choose compensated withdrawal from homesteads, how will the homesteads be handled? Some may be used for homestead redistribution, and the rest may be adjusted into collective operational construction land, and collective operational construction land can fully enter the market! If this part of the homestead land is reclaimed as cultivated land, then according to the policy linking increases and decreases in urban and rural construction land, investors can obtain an equivalent amount of construction land in cities! To a certain extent, this can provide a guarantee for the appreciation and monetization of homesteads, and also provide business opportunities for industrial and commercial capital, cooperatives, and others entering agriculture to develop agricultural real estate!
Data obtained from the Ministry of Agriculture show that as of the end of 2013, the country had a total of 310 million mu of collective construction land, of which the total area of homesteads was about 170 million mu, and the area of collective operational construction land was about 42 million mu. It is not hard to imagine that this reform may detonate land business opportunities with a total value exceeding one hundred trillion! This land reform, on the premise of safeguarding farmers' interests, also provides unlimited business opportunities for investing in land.