The problems and countermeasures of mortgage of the management rights of rural contracted land and farmers’ housing property rights

  Introduction

  The current social and economic transformation has led to the transformation of rural areas into modern agriculture, and the inherent “three rural problems” in rural areas have limited the transformation and progress of rural economy, so in practice, there must be a practical financial support system to improve the rural economic problems. The implementation of mortgage loans for rural contracted land management rights and farmers’ housing property rights (hereinafter referred to as “two rights”) is an important policy measure to solve this problem.

  Expected purpose of the “two rights” mortgage policy

  Compared with the rapid development of China’s social economy and urban economy, the backwardness of rural economy has become a very common phenomenon, and the “three rural areas” has become a social problem in the development of China. The most prominent problem is the low level of financial injection, which limits the development of rural areas.

The implementation of the “two rights” mortgage policy is mainly to mobilize the rural economy through a new financial development model, to improve the efficiency of the use of rural farmland resources, to promote rural business activities, so that social capital can flow into the countryside, and to reduce the “three rural problems” caused by the difficulties of financial transfer and financing. This will reduce the impact of the “three rural issues” caused by the difficulty of financial transfer and financing, revitalize the development of rural economy, and promote the progress of modern agriculture.

  Problems of the implementation of “two rights” mortgage in rural areas

  (1) Scattered land resources and lack of large-scale operation conditions

  Due to the original land management model, most of the rural areas are not able to operate on a large scale. Most of the rural areas are still operated in a decentralized way due to the influence of the original land management model. From the actual situation of the pilot project of “two rights” mortgage, the scattering of rural farmland resources affects the extent of financing in mortgage loans, so most farmers use small credit loans as the main form of loans in “two rights” mortgage, which is also the only way to finance the decentralized operation of land. This is the only way of mortgage in the decentralized operation, and its amount is low, which makes farmers still focus on the small-scale operation mode in their operation, and cannot obtain the high yield goal that can only be achieved by large-scale operation.

  (2) Legal loopholes bring high risks

  There are many contents and clauses in the “two rights” mortgage that are contrary to the existing laws, for example, the provisions of the Security Law and the Property Law on the right to use land and the right to housing property are in great conflict with the “two rights” mortgage. This also makes farmers unable to raise funds or risk financing when they take out “two rights” mortgage due to legal obstacles, so that farmers’ own rights and interests cannot be well protected.

  (3) Restrictions of “two rights” mortgage

  Due to the backward development of rural economy, the legal system and social security system have great defects, which makes the rural farmers suffer from many restrictions in the process of financing. The most obvious restriction factor affecting the “two rights” mortgage is the social security characteristics of the homestead used by the farmers, which also causes the ambiguity of the boundaries of their personal real estate in rural areas and makes the financing difficult.

  Factors of the formation of “two rights” mortgage problem

  (1) The original land system cannot adapt to the requirements of modern agriculture development

  The development and progress of modern agriculture necessarily need the corresponding system and policy as support, so as to ensure the corresponding adjustment and reform of the rural economic structure, but the current land and system implemented in rural areas do not have a clear definition of the relationship between the interests of farmers and economic development, and most of its provisions involving land property rights are not detailed, and the operability still needs further verification.

  (2) Imperfect legal system

  At present, there are still more loopholes and defects in the legal policies implemented in the “two rights” mortgage, and the legal system is not perfect so that the actual “two rights” mortgage is affected by more factors. In the end, the interests of farmers are still affected.

  (3) Unclear property rights of rural land

  It is a very common problem in rural areas that land property rights are unclear. The ownership of land directly determines whether farmers can use the “two rights” mortgage for financing and whether it is legal for farmers to use the “two rights” mortgage. Although the State Council has promulgated a policy requiring the registration of rural land, there are still many lands with disputed property rights in practice, which affect the implementation of the “two rights” mortgage and make the related work more difficult.

  Countermeasures to solve the problem of “two rights” mortgage

  (1) Improve the legislation to limit the scope of “two rights” mortgage

  The scope of “two rights” mortgage should be based on the law, and the rights and interests of farmers in the “two rights” mortgage should be clarified through the revision of legislation and regulations, so that the “two rights” mortgage can be used as a financial policy in the future. The financial policy of “two rights” mortgage can be fully implemented on the basis of lawfulness, and the legislation can be standardized to provide more perfect protection for farmers’ “two rights”.

  (2) Standardize the implementation process of “two rights” mortgage

  In order to avoid mistakes in the process of “two rights” mortgage, it is necessary to formulate a perfect system to regulate the implementation process of “two rights” mortgage, which is usually based on “application → qualification → value assessment → loan approval “In this process, the supervision and examination should be increased and the approval process should be optimized in order to complete the mortgage process in the shortest possible time.

  (iii) Standardize the registration of real estate

  The registration of real estate should be carried out according to the standards and requirements issued by the State Council, and the ownership of farmers’ real estate should be recorded and determined through registration, so as to ensure that the ownership of “two rights” can be clarified in the actual “two rights” mortgage and improve the “two rights” mortgage. The efficiency of “two rights” mortgage work.

  (4) Increase support and coordination efforts

  The People’s Bank of China should increase support for eligible rural financial institutions to support agricultural re-lending. Banking supervision and management institutions to study the differentiated regulatory policies, reasonable determination of the capital adequacy ratio, loan classification and other aspects of the calculation rules and incentive policies to support financial institutions to carry out “two rights” mortgage business. Insurance supervision and management institutions should further improve the agricultural insurance system, and vigorously promote the work of agricultural insurance and farmers’ housing insurance.

  Conclusion

  The above problems in the mortgage of “two rights” are mainly based on the current situation of most rural development in China, and the difficulties in their implementation and execution are also the problems that need to be solved in the mortgage of “two rights”. The solution to the problem of “two rights” mortgage is based on the “State Development [2015] No. 45”, which is proposed to determine farmers’ rights and interests through real estate registration and other measures to provide the basis for the implementation of “two rights” mortgage. The “two rights” mortgage provides the basic conditions for the implementation of the mortgage.