Sunday, February 24, 2013

Property rights for farm land in China

"Pilot program is designed to help establish clear ownership of small farms."  -Herald Tribune Feb. 7, 2013

How do you get better farm productivity? Create clear property rights on who who owns the farmland. Common ownership or socialism in farming has never worked. The collective is good in concept but does not provide the drive to take risks and produce product.

With greater food needs, the only solution is getting more from the same resources and providing clear ownership rights is the clear path for success. Current China farm policy is trying to provide clear title to farmland. Most households do not have clear documentation and providing well-defined title may rectify one of the vexing problems in rural areas. If small farms can be aggregated, more economies of scale can be created. Satellite mapping is being used as tool to help this process. With increasing food imports, there is a sense of urgency with this project. This is a long-term project worth watching. 

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