The concepts of land trust and contract farming and the difference between them

Land trust refers to the practice in which some people who are unwilling to farm or unable to farm entrust their land to cooperative organizations such as supply and marketing cooperatives and large growers, and have them farm and manage it on their behalf.

Contract farming and land trusteeship are similar in concept, except for the objects of land transfer and management. Trusteeship is generally given to organizations such as cooperatives, while contract farming and land trust are generally given to individuals. In addition, the crops to be planted each year after the trusteeship is decided by the cooperative, and contract farming is generally decided by the owner of the land.

The similarity between land trust and contract farming is that a certain commission must be paid to the actual cultivator of the land, and the income from the land belongs to the original owner of the land according to the contract.

The No. 1 Central Document mentions accelerating the development of land flow transformation, service-driven and other forms of large-scale operations through various methods such as transfer of operating rights, share cooperation, contract farming, land trust, etc. . It can be seen that land transfer, land trust and contract farming are in a parallel relationship, and they are all ways to develop moderate-scale operations. The difference is that in land transfer, the contracted land management rights are transferred, and in these two methods, the land contract rights and management rights still belong to the original owner of the land.

In rural areas, there is no clear boundary between land trust and contract farming. They all pay to hand over the land to cooperatives or large grain growers with excellent planting technology and excellent management capabilities for management, and collect an annual fee. Profit from land. In order to save worry, some farmers will choose the land transfer method, handing over the land management rights to cooperatives or large grain growers, and collecting land rent every year.

As for which method to choose, it should be comprehensively considered based on the actual situation. First of all, it is necessary to clarify whether the local cooperatives or large grain growers have the technical and management capabilities to increase the value of land cultivation and whether they can solve the market problem of agricultural products. Secondly, it must be combined with its own conditions, such as material foundation and market sensitivity in choosing planting varieties. Finally, you must consider the fertility of your own farmland.