Agricultural Development in China through the Promotion of Land Rental Markets and Agricultural Cooperatives

概要

With only 9% of the world’s arable land and 6% of its water resources, Chinese agriculture
has long supplied most of the food consumption of the world’s largest population domestically
(Chen et al., 2019; Zhu et al., 2019). However, as the national economy has grown over the
years, Chinese agriculture, in particular, the feed grain sector, has completely lost its
international competitiveness, which triggers grave concerns about the agricultural production
capacity and national food security. Against this background, China’s central government
launched the National Rural Revitalization Strategy, which aims to modernize the rural
economy and bring wealth to rural people through innovating new pathways for economic
development in the countryside. A key institutional innovation envisaged in this strategy is the
consolidation of fragmented farmland and the enlargement of small-scale individual farm size
through the development of land rental markets (Kan, 2021).
The pressure of the growing population on the limited land has made the meager
production structure unable to support China’s sustainable agricultural development. Therefore,
it is considered that improving the land use efficiency is indispensable for enhancing
agricultural productivity, and thereby strengthening the production capacity. In this context, the
issue of land exchanges has received considerable attentions recently, and China’s central
government has launched a series of policy programs to promote this movement. In 2010, the
national average land rental ratio was 14.7%. ...

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