On May 3rd, an article in the Economic Daily stated that improving the price formation mechanism for the transfer of contracted land management rights is not to change the market formed prices and turn them into government pricing, but to better play the role of the government and prevent market failure. We must resolutely correct the practice of forcibly promoting land transfer through administrative means. Whether the contracted land is transferred, how to determine the price, and how to choose the form are all decided by the farmers. The farmers the final say, and cannot set targets and tasks to force the farmers out of the land. Improper practices such as incorporating transfer area and transfer ratio into performance evaluations or policy rewards, and using land transfer rate as planning indicators or project application conditions in some places should be corrected in a timely manner. While improving the price formation mechanism, it is also necessary to establish a risk prevention mechanism. Various regions should continue to carry out investigations and risk mitigation of non-standard behaviors of social investment entities in rural land transfer, and strengthen risk assessments of long-term and large-scale land transfer. For projects with a large area of land management rights transfer, involving many farmers, and high operational risks in the entire village (group), the transfer parties can negotiate to establish a risk guarantee fund, or the transferee can purchase performance guarantee insurance to improve their performance ability.
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