By Cheng Yu & Wang Bin, Research Team on "Rural Land-Finance System and Mode", Department of Rural Economy, Development Research Center of the State Council (DRC)

Research Report No 16, 2015 (Total 4701)

Abstract:

This report gives an analysis of the experience of land-finance system in developed countries like Germany, the U.S. and France. Taking government-issued and guaranteed rural land mortgage bonds as the foundation, and bolstered by perfect system related to law, land management, insurance and credit relief, these countries, with the establishment of a sustained and market-oriented operating mechanism and pooled social funds, have guaranteed a long-term fund injection in agriculture and rural development and achieved the positive and interactive development among agricultural production, rural financial market and rural land market. In the key stage of agricultural transformation, China needs an effective mechanism to introduce capital and borrow experience from developed countries to incorporate land-finance into agricultural policy-backed financial system, raise funds from government-guaranteed land mortgage bonds, develop medium and long-term loans mortgaged by farmland management right, lead financial capital to transfer to rural areas, make input to modern agriculture and new-type body of agriculture management, and build a long-term, policy-led and market-oriented finance underpinning agriculture mechanism.