New land trade framework to benefit farmers

The recently concluded national land resource work conference stated that the reform of the village land property rights system and the land expropriation system are the key tasks for this year's land resource work. The conference suggested the establishment of a construction land market, which is of practical importance to the country, says an article of the 21st Century Business Herald. Excerpts:

The establishment of a construction land market will build a new trade framework to bring benefits to the farmers who are going to lose their land.

The land trade system should evaluate the land's value according to its future uses but not as farmland. This change will reduce the local government's fiscal revenue by a large margin and curb the government's desire to promote urbanization, which is in fact an excuse for some local governments to promote land transfers for their own profit.

The urbanization process should happen naturally. Governments at the municipal level are in a crucial position to establish the new land trade framework and ensure the legal rights of farmers are protected. It is advisable to open the trade system to individual citizens and enterprises when the government strictly controls the land use changes.

By then the land resources will be more fairly priced and the new urbanization will be better disciplined by the market rules.