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Analyzing Characteristics and Implications of the Mortgage Default of Agricultural Land Management Rights in Recent China Based on 724 Court Decisions

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  • Hongguang Zheng

    (School of Business Administration, Northeastern University, Shenyang 110819, China
    School of Economic Crime Investigation, Criminal Investigation Police University of China, Shenyang 110854, China)

  • Zhanbin Zhang

    (School of Business Administration, Northeastern University, Shenyang 110819, China
    School of Marxism, Party School of the Central Committee of C.P.C. (National Academy of Governance), Beijing 100089, China)

Abstract

The transfer of rural land contractual management rights belongs to the recessive transition of land use. The mortgage of rural land management rights is a way of rural land circulation, and has an important impact on the transformation of land use. Rural land management rights mortgage loans can enable farmers to obtain more credit funds, which is conducive to agricultural development and Rural Revitalization. However, with the development of rural land mortgage financing, the associated risk has become increasingly prominent. The most typical risk is the default risk of farmers’ mortgage loans. Based on court decisions regarding rural land mortgage default during 2014–2020, this paper analyzes the characteristics of farmers’ default in different periods and locations. The empirical results reveal that the time and space of rural land mortgage default cases are widely distributed in China, especially in Heilongjiang Province. In the default judgement, the loan amount of CNY 50,000 to CNY 100,000 and the loan periods of 1 year accounted for the highest proportion. When making mortgage loan policies for rural land management rights, financial institutions should give farmers the most preferential treatment regarding the amount, term and interest rate of loans. Farmers’ social security should be improved, and agricultural insurance should be strengthened. Meanwhile, the credit review of small and short-term loan farmers should be heightened.

Suggested Citation

  • Hongguang Zheng & Zhanbin Zhang, 2021. "Analyzing Characteristics and Implications of the Mortgage Default of Agricultural Land Management Rights in Recent China Based on 724 Court Decisions," Land, MDPI, vol. 10(7), pages 1-16, July.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:7:p:729-:d:592526
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    2. Lei Xu & Shixiang Chen & Shuliu Tian, 2022. "The Mechanism of Land Registration Program on Land Transfer in Rural China: Considering the Effects of Livelihood Security and Agricultural Management Incentives," Land, MDPI, vol. 11(8), pages 1-25, August.
    3. Hualou Long & Xiangbin Kong & Shougeng Hu & Yurui Li, 2021. "Land Use Transitions under Rapid Urbanization: A Perspective from Developing China," Land, MDPI, vol. 10(9), pages 1-9, September.
    4. Gong, Maogang & Elahi, Ehsan, 2022. "A nexus between farmland rights, and access, demand, and amount of agricultural loan under the socialist system of China," Land Use Policy, Elsevier, vol. 120(C).
    5. Gong, Maogang & Zhong, Yanan & Zhang, Yun & Elahi, Ehsan & Yang, Yuanxi, 2023. "Have the new round of agricultural land system reform improved farmers' agricultural inputs in China?," Land Use Policy, Elsevier, vol. 132(C).
    6. Peng, Yanling & Ren, Yanjun & Zhong, Yu & Jiang, Yuansheng, 2022. "Farmers’ Heterogeneous Preferences for Selecting Attributes of Farmland Management Right Mortgages: Evidence from Western China," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322408, Agricultural and Applied Economics Association.
    7. Xinyao Li & Lingzhi Wang & Bryan Pijanowski & Lingpeng Pan & Hichem Omrani & Anqi Liang & Yi Qu, 2022. "The Spatio-Temporal Pattern and Transition Mode of Recessive Cultivated Land Use Morphology in the Huaibei Region of the Jiangsu Province," Land, MDPI, vol. 11(11), pages 1-16, November.

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