What are the conditions for promoting the mortgage of the contracted management right of rural land

Recently, the State Council issued the guidance on carrying out the pilot Project of Mortgage loan for Rural contracted Land and Farmers' Housing property Rights, which is not only a solid step in the reform of rural land system, but also an important exploration of rural land capitalization. From the practice at home and abroad, land capitalization should have at least three basic elements, namely, clear boundary of land property rights, market value and the existence of asset transformation platform.

Since the third Plenary session of the 18th CPC Central Committee, we have accumulated a lot of good experience in a series of explorations in the reform of the rural property rights system and the construction of the market system, which has laid a good foundation for promoting the mortgage of rural land contractual management rights. First, the long-term land contract relationship and the confirmation of rights certification lay the foundation of property rights. Second, the promotion of the economic value of land provides a value carrier and basis. Third, the construction of rural property rights market system has created transaction conditions.

The mortgage loan of rural land contract right generally occurs between individuals or cooperative organizations and financial institutions. compared with rural land trust and rural land securitization, there are relatively few participants and limited risk externalities, but the degree of land capitalization is high. derivative risks are large, so we need to do a good job in risk identification and prevention. For financial institutions, they are faced with policy risks and operational risks. As far as the government is concerned, it is faced with guarantee risk and social stability risk. As far as farmers are concerned, they are faced with the risk of "loss of rights and land" and risk of value deprivation.

For a long time in the future, the problem of rural land will be a key issue affecting urban and rural development and the modernization of industrial and agricultural industries. If the reform of the land system does not solve the problem, the modernization process of the whole country will be hindered. The pilot project of mortgaging the right to contracted management of rural land is the latest exploration of the reform. we should not only avoid "reversing" the reform caused by insufficient risk prevention, but also avoid trying without reform. On the basis of the conditions of the domestic property rights system and the reality of rural development, we should fully learn from foreign experience and promote the standardized and orderly development of rural land contractual management rights.

At present, China's agricultural development has entered a new bottleneck period, external challenges and internal contradictions are intertwined, dilemmas and multiple difficulties are increasing, and simple institutional mechanisms are difficult to get out of the predicament. We must start with the land system, a key system that affects urban and rural areas and even the overall situation of reform, and guide and redistribute production factors such as capital and technology by invigorating land elements. Rely on factor modernization to promote agricultural modernization.

Recently, the State Council issued the guidance on carrying out the pilot Project of Mortgage loan for the Management right of Rural contracted Land and Farmers' Housing property Rights, which is a solid step in the reform of rural land system and an important exploration of rural land capitalization. It is bound to bring extensive and far-reaching impact, but we should also fully understand its complexity and arduousness, and properly deal with risks.

What are the conditions for promoting the mortgage of the contracted management right of rural land

From the practice at home and abroad, land capitalization should have at least three basic elements, namely, clear boundary of land property rights, market value and the existence of asset transformation platform. Since the third Plenary session of the 18th CPC Central Committee, we have accumulated a lot of good experience in a series of explorations in the reform of the rural property rights system and the construction of the market system, which has laid a good foundation for promoting the mortgage of rural land contractual management rights.

First, the long-term land contract relationship and the confirmation of rights certification lay the foundation of property rights. Only when the definition of property right is clear, can the subject of property right realize lease, compensated transfer independently through the factor market, or obtain loans through asset reorganization, mortgage, pledge, etc., and the property rights transaction contract can remain stable. For a long time, there has been a dispute between the advantages and disadvantages of private property rights and public property rights. At present, there is a basic consensus, that is, as long as the property rights are clear, ownership is not the most important. Private ownership of land is not an inevitable condition for land capitalization. Under the premise of collective ownership of land, as long as the property right is clear and stable, land capitalization has a foundation.

Since the reform and opening up, China has carried out the reform of the rural land system with the separation of ownership and contractual management rights as the main content, and the relationship of land property rights has been adjusted and optimized, but the relationship of property rights has not been fundamentally straightened out, and the subject of land ownership is empty. Farmers' land contractual management rights are often adjusted and extremely unstable, the property rights system is not clearly divided, rights and energy are incomplete, and property rights management and registration are lack of norms. It leads to the lack of rural land mobility and the high cost of land transaction. In recent years, with the deepening of the reform of rural land system with the adjustment of property rights as the core, a rural collective land property right system with clear property rights, clear power, rights and interests protection and smooth circulation is being formed.

In order to fundamentally stabilize the rural land contract relationship, the "decision of the CPC Central Committee on several Major issues of promoting Rural Reform and Development" adopted by the third Plenary session of the 17th CPC Central Committee proposed that "farmers should be given more full and secure land contractual management rights. The existing land contract relationship should remain stable and remain unchanged for a long time." The long-term land contract relationship makes farmers have more stable property rights, land operators have more long-term expectations, make rural land have the conditions for market exchange of property rights, enhance the stability of land property rights transaction contracts, and promote the smooth flow of rural land. At the same time, the confirmation of rural land rights certification is accelerated, and the boundary of land property rights is clearer, which provides the basic conditions for the market-oriented transfer of rural land property rights and the rational distribution of interests. By the end of 2014, the circulation area of contracted cultivated land nationwide was 403 million mu, 6.3 times that of the end of 2007, and the proportion of transfer reached 30.4 percent, an increase of 25.2 percentage points over the end of 2007.

Second, the promotion of the economic value of land provides a value carrier and basis. Rural land capitalization is a process of converting land assets into current market exchange value of assets based on its income, and land value is very important to the capitalization process. According to the viewpoint of British economist D.Pearce, land value consists of three parts: actual use value, choice value and existence value. In China's rural land value system, in addition to the above three values, land also has social security value, carrying farmers' employment, pension and other functions.

For a long time, due to the lack of reasonable mobility, rural land only exists as natural resources, the value of land is more shown as the actual operating value, the transfer value is not high, and it is difficult to capitalize. At the same time, the chain of traditional agricultural industry is relatively short, which is limited to the production of primary agricultural products, basically selling what is produced, and the industrial profit margin is low, which limits the economic value of land.

In recent years, the state has issued a series of policies to strengthen and benefit farmers, and agricultural functional forms and industrial chains have been continuously expanded, especially facility agriculture, leisure agriculture and other industries with high added value and fast return on investment, which have accelerated the development of agricultural comprehensive profits. it has led to the growth of the operating value of cultivated land and land demand, the concentration of land to new operators, the integration of scattered land value, and the enhancement of land tradable. The value of land mortgage has been improved, which provides a value carrier for the entry of financial elements.

For example, in view of the low value of decentralized mortgage of land and the unwillingness of financial institutions to carry out land mortgage business, Jiaxing, Zhejiang Province, on the basis of confirming the rights of rural land, confirms the land management rights of the main body of the new agricultural operator. apply for land contractual management right certificate and other property right certificate (that is, facilities invested and built on land, etc.) The new type of operator can directly use the land management right certificate and other property right certificate to the rural credit cooperative to carry out mortgage financing. The operation of this model lies in the expected income of land and the convenience of centralized disposal of management rights. By the end of 2014, the city had issued 204 certificates of land transfer management rights, covering an area of 41700 mu, and the balance of special loans reached 310 million yuan.

Third, the construction of rural property rights market system has created transaction conditions. In Marx's view, only when the land has the right to bring income can enter the market and trade freely, the land right can be capitalized. Poorly tradable assets are difficult to financialize, and illiquid assets cannot be priced accurately. Land must enter the market and bring expected income to the owner through transactions before land assets can be transformed into land capital. The construction of land property rights trading market and platform is very important for rural land capitalization. If there is no sound land property rights trading market, various property rights of land assets will be difficult to trade freely. Land capitalization is difficult to achieve or the cost is too high. For a long time, based on the important significance of land to farmers' production, life and employment, the government has imposed very strict restrictions on the transaction of rural land rights, the development of rural property rights trading market lags behind, and the trading and liquidity of land is insufficient.

In recent years, the state has gradually relaxed its control, and the income right of rural land operation has gradually become tradable and stable as collateral. Since 2008, the state has successively explored mortgage financing of land contractual management rights in many pilot places in the form of ministerial documents. In 2014, the central "No. 1 document" more clearly proposed to "give farmers the possession, use, income, transfer and contractual management right mortgage, security rights", "allow the management right of contracted land to mortgage financing from financial institutions".

At the same time, the construction of rural property rights transaction system has been accelerated, various financial services and intermediary services have also developed rapidly, and the mobility of rural land has been enhanced. According to the statistics of the Ministry of Agriculture, by the end of 2012, more than 13000 counties (cities) and more than 13000 townships (towns) across the country have established land transfer service centers. In addition, with the continuous improvement of the rural social security system, the social security pressure on rural land is gradually weakened, and the ability to realize land assets is strengthened, which in fact reduces the burden on the mortgage of rural land contractual management rights. it improves the enthusiasm of financial institutions to carry out land mortgage business.