the use right of forest lands, transferability & management of forests ownership

The Use Right of Forest Lands, Transferability & Management of

Forests Ownership

XIE YI, Ph.D.Associate ProfessorDepartment of Forestry Economicsthe School of Economics and ManagementBeijing Forestry University

Outline

Background

Structure of Forest Tenure in China

Transferability of Forest Tenure

Forest Tenure Market

Discussion

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

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, 2010-6-11 (2)Field Survey on Jiangxi Forestry Administration Bureau, 2010-3-20

Chart 2 : Percentage of Forest to be Distributed in Jiangxi Province

82.5%

17.5%

http://www.forestry.gov.cn/ZhuantiAction.do?dispatch=more&colid=1044&name=lqgg

Background

Alleviate the Burden of TaxesTypes Basic Price for Tax Collection Standard for Tax Collection

UnitBefore the

Reform

After the Reform

UnitBefore the

Reform

After the Reform

Special Agricultural Products Tax

yuan/m3 430 - % 8.4 0

Income Tax yuan/m3 430 - % 3 0

Fee for Fostering Forest yuan/m3 430 360 % 20 20

Fee for Quarantine yuan/m3 430 360 yuan/m3 2 2

Fee for Measuring Volume

yuan/m3 430 - yuan/m3 7 0

Fee collected at Township

and Village Levelyuan/m3 430 - yuan/m3 115 0

ChangeDropping from more than 65.13% to no higher than

20% of the market price of the timber

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

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

Outline

Background




Discussion

Structure of Forest Tenure

Forest Tenure Cluster– Ownership

– Use Right

– Beneficial Right

Forest Type– National Forest

– Collective Forest nat i onal f orest col l ect i ve f orest

47%

53%

Chart 3 : Percentage of National Forest and Collective Forest


National Forest

Types Ownership Use Right Beneficial Right

Forestlands the Nation

-Central Government

the Nation

-Local Government

-Forest farm

the Nation

-Central Government

-Local Government

-Forest farm

Stumpages the Nation

-Central Government

the Nation

-Local Government

-Forest farm

the Nation

-Central Government

-Local Government

-Forest farm


Collective Forest

Types Ownership Use Right Beneficial 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)

Stumpages 1.the Collective


1.the Collective


1.the Collective



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.

Outline

Background




Discussion


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


Stimulation on the Transfer– Forest Tenure Transfer Center at national,

regional and county levelNational Forest Tenure Transfer Center

426 Transfer Centers at County and City level

– Transfer Information Bulletin based on

Internet Technology

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

Basic Information– http://www.chinaforest.com.cn/– 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

http://www.chinaforest.com.cn/

Transfer Information Release

Forest Resource Auction– 20 kg Tea Auction

– Carbon Emission Right

International

Cooperation– Incorporate Sino and

Foreign Enterprise

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…

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

Transfer Information Bulletin

http://www.jxly.gov.cn/

http://www.smforestry.com/

http://www.jxly.gov.cn/

http://www.smforestry.com/


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.


Regulation on the Transfer Procedure– Categorized Approval Right to different

Level– Below 500 ha, county forestry

administration – 500-1000 ha, municipal forestry

administration– Above 1000 ha, provincial forestry

administration

Outline

Background




Discussion


DestinationRegulation

Transferor

Transferee

Forest Tenure

Price Mechanism

Term

Mode

Market Operation


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


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

CA


Transfer Types and Objects

Types Descriptions Mode

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


the transfer




II Long-term Transfer of Use

right of Barren Land, keeping

beneficial right after the

transfer

Negotiation， ,

Joint-stock

Long-term Transfer of Use


Ownership of Stumpages,


the transfer




III Short-term Transfer of Use


Ownership of Stumpages,


the transfer

Auction, Bidding,

Negotiation—

Stumpage

Transfer


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


Long term transfer of use right

of forest lands

Short term transfer of use

right of forest lands


Forested Lands Price


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

6139.8 4760.3

Between 6 to 10 years old 9313.8 7471.2

Between 11 to 15 years old 14418.9 10713.3

Between 16 to 20 years old

20611.35 14701.2

Older than 20 years old

26767.8 17450.4


Circulation Transferor (Farmers)

Transferee

AgencyRelatives&

Friend

Valuation

Transfer Center

Re-register Subject of Forest Tenure

Informal Transfer

Formal Transfer


Process in the Transfer Center


Comparative Analysis on these two Transfer

Item The Informal Transfer The Formal Transfer

Time Needed No more than 10 days In about 45 working days

Transaction Cost Nearly equal to zero Fee for transaction,

valuation, accommodation Revenue Less for Lower Price More for Higher Price

Guarantee to the Stakeholder

Partially Completely

Applicability Small Scaled Manager Middle and Large Scaled Manager

Service Gained None Forest Insurance, Loan

Outline

Background




Discussion

Discussion

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

Discussion

Item Transfer Area Forest Area Collective Forest Area Percentage1 Percentage2

unit Ha Ha Ha % %

Province 43525 10626466 6808424.3 0.41 0.64

NC 0 740132 126908.3 0 0

JDZ 3324 524790 291465.7 0.63 1.14

PX 40 382699 136509.7 0.01 0.03

JJ 3776 1882324 869999.2 0.20 0.43

XY 0 316367 143553.0 0 0

YT 74 355425 156387.7 0.02 0.05

GZ 8477 3937964 1430162.9 0.22 0. 59

JA 11348 2527107 1197793.0 0.45 0. 95

YC 14297 1867057 696490.8 0.77 2.05

FZ 1650 1881692 898157.5 0.09 0. 18

SR 539 2279098 885864.3 0.02 0.06

Transfer Occurrence Rate of Forest Land and Stumpage in Jiangxi Province and 11 Municipalities from Year 2004 to 2007

Discussion

Characteristics of Transferee– Forest lands

Private Forest Farm

Joint-stock Forest Farm

Forest Management Enterprise

– StumpagesBusinessmen

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

Discussion

SWOT analysis on the Transfer Center

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

Discussion

Policy

Stimulation

&

Standardi-zation

Institutional Reform

Transferring Institution

Logging Institution

Perfecting Management

The FFC

Developing AgencyMarketing

Mechanism

Farmers Cooperation

Thanks you for you attention.

Any question is welcome.

the use right of forest lands, transferability & management of forests ownership

Documents

percentage of forest

use right of forest

percentage of national

forest allocation efficiencies

owned forest tenure

private forestry farmers

scaled management

income taxyuanm3430