ABSTRACT

Rapid industrialization is the overall trend of China’s economy development. In the process of industrialization，on the one hand，consumers will increase their demand for agricultural production with income rise；on the other hand，urbanization causes agricultural land keeps decreasing. How to produce enough agricultural products in order to meet increasing demand for agricultural products is inevitable challenge in the development of agriculture in China. There are two kinds of methods can be used to increase efficiency in agricultural production. Firstly，develop and spread agricultural science and technology in order to increase technical efficiency. Secondly，improve land，labor and capital market in order to increase allocation efficiency. Farmland rental is only means of agricultural land exchange in China. Promotion of farmland rental is important to increasing of efficiency in agricultural production and development of economy.

Land is an important production factor in the agricultural sector. It is play an important role in agricultural production. Farmland rental was mainly caused by changes of agricultural products market and other production factors market. The agricultural products markets and production factors markets change fast in the rapid industrialization. On the one hand，the change of demand for agricultural production causes crop production adjustment；on the other hand，expansion of non-agriculture sector causes labor force migration from agriculture sector. The change of markets cause farmland rental among different agricultural producers. As market is effective，production factors will flow among producers according to exchange of price in order to equalize marginal output of factors，trader will choose appropriate contracts in order to decrease transaction cost and avoid risk.

This thesis is aim toexamine the efficiency of farmland market through studying on farmland rental in the context of rapid industrialization. Crop production adjustment and labor force migration were focused as impetus caused farmland rental in the context of rapid industrialization. Orientation，process and extent are three dimensions used to examine the efficiency of farmland market. Mechanism，impetus and obstacles of farmland rental are three research contents. The contents and the related conclusions are as follows：

Content 1：Mechanism of farmland rental.

The objective of this section is to analyze contracts used in farmland rental，in order to examine contracts were or were not coincidence with the demand of decrease transaction cost and avoid risk. The contract theory shows that trader will choose appropriate contracts in order to decrease transaction cost and avoid risk. In the contracts examination，nature of land，trader and application of farmland were used as longitude；medium，guarantee，oral or writing contract，term，price were used as latitude. The results show that contracts were adopted were related tightly to trader and application of farmland in farmland rental. It indicates that contracts were used in farmland were coincidence with the demand of decrease transaction cost and avoid risk.

Content 2：Impetus of farmland rental.

The objective of this sectionis to analyze behaviors of rural households，in order to examine the flow of farmland is or is not coincidence with the demand of allocating resources effectively. Agricultural household model was adopted in the double-households farmland market model structuring. The double-households farmland market model was used to analyze effects of crop production adjustment and labor force migration on farmland rental of households. Theoretical analysis supplied with empirical study two hypotheses. The empirical study based on Jiangsu rural household survey data shows there kinds of orientation of farmland among rural households. Firstly，Land from unadjusted households was transferred to adjusted ones in crop production adjustment. Secondly，land was transferred from households which have a high degree of labor force migration to households which have a low degree of labor force migration. Thirdly，land was transferred from land abundant households to labor force abundant ones. This indicates that the flow of farmland is coincidence with the demand of allocate resources，farmland market and allocate resources according to change of product market and factor market in agriculture sector.

Content 3：Obstacles of farmland rental.

The objective of this section is to analyze price distribution offarmland in order to examine the farmland market whether or not could allocate resource effectively and equalize marginal output of farmland among producers. The economic law show that when market is effective，production factors will flow among producers according to exchange of price in order to equalize marginal output of factors. With converse thinking，the author firstly examine the distribution is concentration or separation，and then analyze causes of separation of price distribution of farmland. It was concluded that the price distribution of farmland is separation，the fragment of farmland restrict the function of market，it is obstacle to farmland rental.

In brief，farmland market can allocate land resource according to circumstance change of agriculture production，contacts were used in farmland rental were coincidence with the demand of decrease transaction cost and avoid risk. However，fragment of farmland and the aging of producer in agriculture limit the function of market，obstacle to farmland rental. To promote farmland rental，the author make three policy suggestions. First，improve farmland rental according to regional economic development；second，set up tangible farmland rental market at the village level；third，train new farmer and promote regional flow of farmers.

Keywords：Crop Production Adjustment；Labor Force Migration；Farmland Rental；Rent Gap