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\hypersetup{pdftitle={China's Rural Land Reform: How Have Rural Households' Incomes and Crop Production Been Affected by Land Transfer Rights: A Case Study in Henan Province},pdfauthor={Elizabeth Lunik, Xiangdong Hu, Yelto Zimmer},pdfsubject={Tropentag 2016: Abstract},pdfkeywords={China, land ownership, land productivity, rental agreements, rural household income},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 18-21, 2016, Vienna, Austria}}\\[1ex] \Large{``Solidarity in a competing world ---\\fair use of resources''\\[2ex]}}
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\Large{\textbf{China's Rural Land Reform: How Have Rural Households' Incomes and Crop Production Been Affected by Land Transfer Rights: A Case Study in Henan Province\footnote{\textbf{Contact Address:} Elizabeth Lunik, Thünen Institut of Farm Economics, Bundesallee 50, 38116~Braunschweig, Germany, \mbox{e-mail}: \email{elizabeth.lunik@thuenen.de}}\\[0.8ex]}}
\normalsize{\textsc{Elizabeth Lunik$^{1}$, Xiangdong Hu$^{2}$, Yelto Zimmer$^{1}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$Thünen Institut of Farm Economics, Germany}}}
\item[]{\small{\textit{$^{2}$Chinese Academy of Agricultural Sciences, China}}}
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\index[author]{Lunik, Elizabeth}
\index[author]{Hu, Xiangdong}
\index[author]{Zimmer, Yelto}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
Historically, rural land in China is owned by the village collectives. Households have the right to use the land for a fixed"=term contract, but they cannot sell or develop it. This unique land tenure system has resulted in several issues including low land productivity (farmers rely on short"=term investments, like chemical inputs, instead of longer"=term capital investments); small, disperse plots that cannot provide sufficient income or employment; and ultimately, a significant urban"=rural wealth divide, as many households migrate to work in urban areas. Currently the Chinese government is working to partially privatize rural land by encouraging village collectives to give households formal land contracts and land transfer rights, thereby opening up land rental markets. 



This paper uses land ownership and rental survey data, PRA tools, and expert interviews conducted in April 2016 to evaluate how rural households' income, crop yields, production costs, and farm revenues are affected under different land rental schemes in Henan province. Henan is one of the top agricultural"=producing provinces by total value, and has been testing different land transfer programs. The two locations chosen are important agricultural centres with two crops per year; moderate mechanisation, and farms on average of 1 hectare. 



The evaluated schemes may mean that more educated and efficient farmers are able to cultivate the land, as well as consolidate small plots of land into larger tracks facilitating greater mechanisation, labour and input efficiency, and capital investment. When comparing the status quo farm ownership to different contracted farming schemes (often results in larger farm size), we expect increased yields, productivity, and reduced cost of production in the latter. Depending on the contract or rental agreement we also expect increased, more stable rural household incomes. There are many obstacles to these rural land reforms\permil{}e.g. landowner contracts and farmer transfer agreements must be formalized, and there must be strong, transparent institutions to register, enforce, and settle disputes on these agreements\permil{}yet such reforms are necessary to improve rural incomes and ensure more sustainable management of our natural resources.}

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\noindent \textbf{Keywords:} China, land ownership, land productivity, rental agreements, rural household income
\index[key]{China}
\index[key]{Land!ownership}
\index[key]{Land!productivity}
\index[key]{Rental agreements}
\index[key]{Rural!household income}
\end{document}
