Heliyon (Dec 2024)
The coupling mechanism of farmland transfer and farmland mortgage: Taking the Jinshan District of Shanghai as an example
Abstract
Taking the mortgage loan mechanism of farmland management rights in Jinshan District of Shanghai as an example, we analyzed the coupling mechanism between farmland transfer and farmland mortgage according to a case analysis and system evolution theory. We explored the comparative advantages and inherent limitations. The results showed that the linkage between farmland transfer and farmland mortgage has a Pareto nature, which can achieve a two-way mutual promotion and spiral development of the coupling system. The comparative advantages of the coupling mechanism of farmland transfer and farmland mortgage include source screening, process standardization, information symmetry, and comprehensive subsidies. The inherent limitations include the instability of the management right of flow transformation; the difficulty of land value evaluation; and the difficulty of mortgage disposal, unsustainability, and social risks. The benign coupling between farmland transfer and farmland mortgage likely triggered the market driving force and formed an operating mechanism that is “market driven and government promoted”; however, the capital supply of rural finance has not been consistent with the scale of agricultural production and management. With the deepening of this coupling, the systemic risk of the rural land financial market has spread from a farmland financial market to a farmland transfer market, and the degree of risk has become greater and the degree of harm has become deeper. Therefore, the government should strengthen the top-level design and improve the following key links: (1) encouraging and guiding the signing of medium- and long-term farmland transfer contracts; (2) establishing professional farmland value evaluation institutions; (3) building an effective exit mechanism for financial institutions; and (4) establishing a standardized farmland management right redemption mechanism.
