Three-rights separation for rural land transfer is hard to implement; land trusts come to the rescue

Land transfer trusts are becoming more and more widespread; it is said they can raise farmers' incomes and achieve large-scale agricultural production, but at present they need recognition and promotion by authoritative figures.

A key to China's rural reform today lies in the separation of the three rights, that is, without changing land ownership or farmers' land contract rights, loosening the management rights so that land can circulate and the returns of farming households and operators can increase. Previously, Chen Xiwen, director of the Office of the Central Rural Work Leading Group, said in an interview that one third of the land nationwide has already been transferred, and among the 230 million farming households with contracted land, 66 million households have transferred land to a greater or lesser extent.

Pu Jian said that land transfer trusts turn land into a certificate that can be carried, inherited and traded, which can both protect farmers' share of the value-added returns from land and the fruits of marketization, and also develop scattered land in an intensive and large-scale way, realizing land securitization, farmer shareholderization, rural corporatization and agricultural industrialization.

Pu Jian pointed out that the capitalization of land is not spontaneous, so the exchange and use of land must be put under the rule of law and accept legitimate market regulation, and land trusts are precisely the establishment of a land custodian mechanism; China's trust mechanism is in turn regulated by government supervisory authorities, and will not infringe on the interests of ordinary people.

But at present, land transfer trusts still face difficulties at the policy level and the practical level. The vice dean of the Civil, Commercial and Economic Law School of China University of Political Science and Law mentioned that there are two problems in the Lanxi model: first, the separation of the three rights of land is needed, but contract rights and management rights cannot be separated; second, land confirmation of rights is needed, but at present farmers only have contract rights, while only property rights can be confirmed, and contract rights cannot.

Therefore Pu Jian also said that land trust transfer is a new type of production relation and needs recognition and promotion by authoritative figures. "Just like when Deng Xiaoping affirmed and promoted the household contract responsibility system in Xiaogang Village."

In addition, Pu Jian also mentioned that the internet solves information transmission, but the biggest problem in online shopping is the crisis of trust, and trusts happen to solve credit problems, so he envisions combining land transfer trusts with consumer trusts, connecting them with each other, and completing the linkage between the supply and marketing stages of agricultural products under the protection of trusts, so as to realize supply-side reform in agriculture.

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