Land Rights, Farmer Investment Incentives, and Agricultural Production in China


Book Description

The overall goal of our paper is to estimate the impact of China's land rights on farm investment incentives and agricultural production. To meet the goal, the paper pursues three specific objectives. First, the paper briefly reviews the various linkages between land rights and investment incentives. Next, we demonstrate how land use behaviour differs according to the tenure regime and land rights. Third, by using our field survey data, this paper identifies the links between specific land rights, instead of just the land tenure type, and investment incentives. The paper also measures the size of efficiency loss from the current land rights arrangements.










The Profits of Power


Book Description







The Impact of Property Rights on Households' Investment, Risk Coping, and Policy Preferences


Book Description

Even though it is widely recognized that giving farmers more secure land rights may increase agricultural investment, scholars contend that, in the case of China, such a policy might undermine the function of land as a social safety net and, as a consequence, not be sustainable or command broad support. Data from three provinces, one of which had adopted a policy to increase security of tenure in advance of the others, suggest that greater tenure security, especially if combined with transferability of land, had a positive impact on agricultural investment and, within the time frame considered, led neither to an increase in inequality of land distribution nor a reduction in households' ability to cope with exogenous shocks. Household support for more secure property rights is increased by their access to other insurance mechanisms, suggesting some role of land as a safety net. At the same time, past exposure to this type of land right has a much larger impact quantitatively, suggesting that a large part of the resistance to changed property rights arrangements disappears as household familiarity with such rights increases.







Who Will Feed China?


Book Description

Originally published in 1995, but with enduring relevance in a time of global population growth and food insecurity, when it was first published, this book attracted much global attention, and criticism from Beijing. It argued that even as water becomes scarcer in a land where 80% of the grain crop is irrigated, as per-acre yield gains are erased by the loss of agricultural land to industrialization, and as food production stagnates, China still increases its population by the equivalent of a new Beijing each year. This book predicts that in an integrated world economy, China’s rising food prices will become the world’s rising food prices. China’s land scarcity will come everyone’s land scarcity and water scarcity in China will affect the entire world. China’s dependence on massive imports, like the collapse of the world’s fisheries, will be a wake-up call that we are colliding with the earth’s capacity to feed us. Over time, Janet Larsen argued, China’s leaders came to ‘acknowledge how Who Will Feed China? changed their thinking..’ As China’s wealth increases, so do the dietary demands of its population. The increasing middle classes demand more grain-intensive meat and farmed fish. The issue of who will feed China has not gone away.




Market Versus Administrative Reallocation of Agricultural Land in a Period of Rapid Industrialization


Book Description

Property rights in China are moving in two different directions. In some villages, private rights are secure and to some degree marketable; in other villages, individual rights are increasingly restricted and suject to more regulation and reallocation. Administrative reallocation tends to promote more equal access to land, but the price paid for the social insurance of land tenure may be forgone investment.




Growth and Evolution in China's Agricultural Support Policies


Book Description

China is perhaps the most prominent example of a developing country that has transitioned from taxing to supporting agriculture. In recent years, Chinese price supports and subsidies have risen at an accelerating pace after they were linked to rising production costs. Per-acre subsidy payments to grain producers now equal 7 to 15 percent of those producers' gross income, but grain payments appear to have little influence on production decisions. Chinese authorities began raising price supports annually to bolster incentives, and Chinese prices for major farm commodities are rising above world prices, helping to attract a surge of agricultural imports. U.S. agricultural exports to China tripled in value during the period when China's agricultural support was accelerating. Overall, China's expansion of support is loosely constrained by World Trade Organization (WTO) commitments, but the country's price-support programs could exceed WTO limits in coming years. Chinese officials promise to continue increasing domestic policy support for agriculture, but the mix of policies may evolve as the Chinese agricultural sector becomes more commercialized and faces competitive pressures.