By Cheng Yu, Chen Sicheng &Wang Bin, Research Team on "Rural Land-Finance System and Mode", Department of Rural Economy of DRC

Research Report No 35, 2015 (Total 4720)

Abstract:

Rural land management rights and agricultural productive assets are not regarded as valid pledge under current credit supply mechanism of financial institutions based on mortgage of assets, which hinders agricultural credit loans for productive activities. A field survey was conducted on 305 entities of scale management of agriculture in Zhejiang province and the results show that large-scale rural farming lacks adequate fund for productive activities. Since small amount of credit loans could not meet the demand, farmers hope to receive large amount of credit loans through mortgage of land management rights. In the cities of Huzhou and Jiaxing, those farmers who own land management rights through land circulation and the procedures of land right confirmation, registration and certification are able to mortgage their land management rights and things immovably attached to the land. Thus, the productive assets of agriculture attached to land could leverage financial support for scale management of agriculture, and effectively push forward the development of modern agriculture. Based on the experiences and problems revealed from the field survey in Zhejiang province on mortgage of land management rights, this paper raises some suggestions from four aspects to improve coordinated institutional arrangement, including the confirmation of land management rights, the improvement of land circulation service, the construction of refinancing mechanism with mortgaged assets and the enhancement of risk protection mechanism.