The Theoretical Approach and Practice of Farmland Rights System Reform from Decentralization to Centralization Promoting Agricultural Modernization: Evidence from Yuyang District in Shaanxi, China

The Chinese government is attempting to readjust the relationship of farmland rights by farmland rights system reform to optimize the allocation of farmland by market means. Therefore, this study is aimed at exploring the effectiveness of the farmland rights system reform from decentralization to centralization and its impacts on agricultural modernization. In this study, the shift theory of land rights is introduced to analyze the approach of the reform promoting agricultural modernization, and the practice of Yuyang District as evidence illustrates that the reform is a further extension of the land marketization reform, which clears the obstacles of market allocation of farmlands and promotes agricultural modernization by achieving three objectives of agricultural production. The results of this study show the reform is beneficial to a high level of yield, efficient production, and environment friendly in agricultural production, so the reform indirectly promotes agricultural modernization. Meanwhile, Yuyang District’s experiences show that the farmland issue is a complex one, which should be considered from the perspectives of public benefits and private benefits, and appropriate farmland rights system reform is a policy accelerator for facilitating agricultural modernization. Generally, this study not only innovatively links the farmland rights system reform with the three objectives of agricultural production to analysis impact mechanism of the reform on agricultural modernization, but it also confirms the effectiveness of the reform design of the central government and provides some advanced experiences for other regions.