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The Use Right of Forest Lands, Transferability & Management of Forests Ownership XIE YI, Ph.D. Associate Professor Department of Forestry Economics the.

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Presentation on theme: "The Use Right of Forest Lands, Transferability & Management of Forests Ownership XIE YI, Ph.D. Associate Professor Department of Forestry Economics the."— Presentation transcript:

1 The Use Right of Forest Lands, Transferability & Management of Forests Ownership XIE YI, Ph.D. Associate Professor Department of Forestry Economics the School of Economics and Management Beijing Forestry University

2 Outline Background Structure of Forest Tenure in China Transferability of Forest Tenure Forest Tenure Market Discussion

3 Background. The New Phase of Collectively Owned Forest Tenure Reform in China – Make the Property Right more Clear – Alleviate the Burden of the Taxes – Make the Management Flexible

4 Background Make the Property Right more Clear 59.4% 40.6% Chart 1 : Percentage of Forest to be Distributed in National Wide Source: (1)http://www.forestry.gov.cn/ZhuantiAction.do?dispatch=more&colid=1044&name=lqgg, www.forestry.gov.cn/ZhuantiAction.do?dispatch=more&colid=1044&name=lqgg (2)Field Survey on Jiangxi Forestry Administration Bureau, Chart 2 : Percentage of Forest to be Distributed in Jiangxi Province 82.5% 17.5%

5 Background Alleviate the Burden of Taxes TypesBasic Price for Tax CollectionStandard for Tax Collection Unit Before the Reform After the Reform Unit Before the Reform After the Reform Special Agricultural Products Tax yuan/m %8.40 Income Tax yuan/m %30 Fee for Fostering Forest yuan/m %20 Fee for Quarantine yuan/m yuan/m 3 22 Fee for Measuring Volume yuan/m yuan/m 3 70 Fee collected at Township and Village Level yuan/m yuan/m Change Dropping from more than 65.13% to no higher than 20% of the market price of the timber

6 Background New Problems outcome from the Reform – Small Scaled Forest Management – Forest Lands Fragmentation – Difficulties to Provide Public Service – Non-willingness to Manage Forest – Low Efficiency of Forest Resources Allocation

7 Background Forest transfer is badly needed for improving forest allocation efficiencies from the following aspects: – Scaled Management and Economic Efficiency – Opportunity for Social Capital Investing Forest – Enhancement of Income for Farmers

8 Outline Background Structure of Forest Tenure in China Transferability of Forest Tenure Forest Tenure Market Discussion

9 Structure of Forest Tenure Forest Tenure Cluster – Ownership – Use Right – Beneficial Right Forest Type – National Forest – Collective Forest 47% 53% Chart 3 : Percentage of National Forest and Collective Forest

10 Structure of Forest Tenure National Forest TypesOwnershipUse RightBeneficial Right Forestlands the Nation -Central Government the Nation -Local Government -Forest farm the Nation -Central Government -Local Government -Forest farm Stumpagesthe Nation -Central Government the Nation -Local Government -Forest farm the Nation -Central Government -Local Government -Forest farm

11 Structure of Forest Tenure Collective Forest TypesOwnershipUse RightBeneficial Right Forestlands the Collectively Economic Organization (Village Committee) 1.the Collective 2.the Private (Forestry Farmers, Enterprises) 1.the Collective 2.the Private (Forestry Farmers, Enterprises) Stumpages1.the Collective 2.the Private (Forestry Farmers, Enterprises) 1.the Collective 2.the Private (Forestry Farmers, Enterprises) 1.the Collective 2.the Private (Forestry Farmers, Enterprises)

12 Structure of Forest Tenure Essence of Collective Forest Tenure Reform – Ownership of the Forest lands being kept unchanged. – Use right of the Forest Lands, Ownership and Use right of the Stumpages being distributed to each farmer.

13 Outline Background Structure of Forest Tenure in China Transferability of Forest Tenure Forest Tenure Market Discussion

14 Transferability of Forest Tenure the Acts at National Level – Forest Act, 1984 – Contracting Act of Rural Land, 2002 – Property Right Act, 2004 the Bill at Provincial Level -Rule on Forest Resource Transfer in Jiangxi Province, 2004

15 Transferability of Forest Tenure Stimulation on the Transfer – Forest Tenure Transfer Center at national, regional and county level National Forest Tenure Transfer Center 426 Transfer Centers at County and City level – Transfer Information Bulletin based on Internet Technology

16 Transfer Centers System the National Forest Tenure Transaction Institute the Southern Forest Tenure Transaction Institute the Provincial Forest Tenure Transaction Management Office the Forest Tenure Transaction Institute at County Level the National Level the Regional Level the Provincial Level the County Level

17 Basic Information – – Approved by the State Department in Sep., 2009 – Jointly Constructed by the State Forestry Administration and the Beijing Municipality – Nationally Comprehensive Transaction and Service for Forestry Production Factors and Resources

18 Transfer Information Release

19 Forest Resource Auction – 20 kg Tea Auction – Carbon Emission Right International Cooperation – Incorporate Sino and Foreign Enterprise

20 Transfer Center at County Level Jointly funded and established by local, provincial and central governments. Operated by local forestry administration bureau. Provide services such as, forest tenure registration, certification endorsement on forest tenure, forest assets valuation, mortgage loan, transaction assistant…

21 Transfer Center at County Level Service Types Administration Agency Tenure Registration Permit for Transporting Timber Release Market Information Asset Valuation Organize Auction and Bidding Mortagage Loan Forest Insurance

22

23 Transfer Information Bulletin

24 Transferability of Forest Tenure Regulation on the Transfer Procedure – Forest managed by the collective and national forest must be valued before transfer out. – The above two types of transfer must be conducted in the transfer centers. – Qualification Assessment.

25 Transferability of Forest Tenure Regulation on the Transfer Procedure – Categorized Approval Right to different Level – Below 500 ha, county forestry administration – ha, municipal forestry administration – Above 1000 ha, provincial forestry administration

26 Outline Background Structure of Forest Tenure in China Transferability of Forest Tenure Forest Tenure Market Discussion

27 Forest Tenure Market DestinationRegulation Transferor Transferee Forest Tenure Price Mechanism Term Mode Market Operation

28 Forest Tenure Market Transfer Types and Subjects – A, Distribution of Forest Managed by the Collective into Each Farmer through Household Contract – B, Transfer of Forest Managed by the Collective through Auction or Bidding – C, Transfer of Forest Achieved by the Farmers through Type A into other Bodies

29 Forest Tenure Market Transfer Types and Subjects Transfer by Nego- tiation and other ways Transfer by Auction or Bidding Distri- bued to each HH Collec- tive Forest Held by the collec- tive Other Subjects The Collective being the subject to manage the forest lands The Farmers being the subject of ownership of stumpages use right of land B C A

30 Forest Tenure Market Transfer Types and Objects TypesDescriptionsMode I Long-term Transfer of Use right of Barren Land, not keeping beneficial right after the transfer Auction, Bidding, Negotiation Long-term Transfer of Use Right of Forest lands and Ownership of Stumpages, not keeping beneficial right after the transfer

31 Forest Tenure Market Transfer Types and Objects TypesDescriptionsMode II Long-term Transfer of Use right of Barren Land, keeping beneficial right after the transfer Negotiation, Joint-stock Long-term Transfer of Use Right of Forest lands and Ownership of Stumpages, keeping beneficial right after the transfer

32 Forest Tenure Market Transfer Types and Objects TypesDescriptionsMode IIIShort-term Transfer of Use Right of Forest lands and Ownership of Stumpages, keeping beneficial right after the transfer Auction, Bidding, Negotiation Stumpage Transfer

33 Forest Tenure Market Price System Barren lands Price Stumpages Price Arboreal Bamboo Barren Lands Arboreal Bamboo Economic Long term transfer of use right of forest lands, and ownership of stumpages Short term transfer of use right of forest lands, and ownership of stumpages Long term transfer of use right of forest lands Short term transfer of use right of forest lands ownership of stumpages Forested Lands Price

34 Forest Tenure Market Price System for a Transfer Contracted for 30 years in 2006 Item Fir Forest (yuan/ha)Pine Forest (yuan/ha) Bare land 150 Younger than 5 years old Between 6 to 10 years old Between 11 to 15 years old Between 16 to 20 years old Older than 20 years old

35 Forest Tenure Market Circulation Transferor (Farmers) Transferee Agency Relatives& Friend Valuation Transfer Center Re-register Subject of Forest Tenure Informal Transfer Formal Transfer

36 Forest Tenure Market Process in the Transfer Center

37 Forest Tenure Market Process in the Transfer Center

38 Forest Tenure Market Comparative Analysis on these two Transfer Item The Informal Transfer The Formal Transfer Time Needed No more than 10 daysIn about 45 working days Transaction CostNearly equal to zero Fee for transaction, valuation, accommodation RevenueLess for Lower PriceMore for Higher Price Guarantee to the Stakeholder PartiallyCompletely Applicability Small Scaled Manager Middle and Large Scaled Manager Service Gained NoneForest Insurance, Loan

39 Outline Background Structure of Forest Tenure in China Transferability of Forest Tenure Forest Tenure Market Discussion

40 Level of Development of the Market – Low transfer occurrence rate from statistic data – Active transfer among farmers in the rural area – Underground v.s. on the ground

41 Discussion ItemTransfer AreaForest Area Collective Forest Area Percentage1Percentage2 unitHa % Province NC JDZ PX JJ XY YT GZ JA YC FZ SR Transfer Occurrence Rate of Forest Land and Stumpage in Jiangxi Province and 11 Municipalities from Year 2004 to 2007

42 Discussion Characteristics of Transferee – Forest lands Private Forest Farm Joint-stock Forest Farm Forest Management Enterprise – Stumpages Businessmen

43 Discussion Factors affecting farmers transfer out behavior – Understanding on the logging quota system – Understanding on the transfer institution – Proportion of Non-forestry Income – Amounts of children being in school

44 Discussion SWOT analysis on the Transfer Center

45 Discussion Assessment on the transfer institution – Being functional to avoid new property right conflicts – Stimulation on the transfer occurrence – The government share some costs – No pay enough attention on the small scaled transferors

46 Discussion Policy Stimulation & Standardi- zation Institutional Reform Transferring Institution Logging Institution Perfecting Management The FFC Developing Agency Marketing Mechanism Farmers Cooperation

47 Thanks you for you attention. Any question is welcome.


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