The Use Right of Forest Lands, Transferability & Management of Forests Ownership

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. Background • Structure of Forest Tenure in China • Transferability of Forest Tenure • Forest Tenure Market • Discussion Outline

3. . 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

4. Make the Property Right more Clear Chart 1 : Percentage of Forest to be Distributed in National Wide Chart 2 : Percentage of Forest to be Distributed in Jiangxi Province 17.5% 59.4% Background 40.6% 82.5% 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

5. Alleviate the Burden of Taxes Background

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 Chart 3 : Percentage of National Forest and Collective Forest 53% 47%

10. Structure of Forest Tenure National Forest

11. Structure of Forest Tenure Collective Forest

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. 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 Transferability of Forest Tenure

15. 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 Transferability of Forest Tenure

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

17. 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

18. Transfer Information Release

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

20. 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

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

23. http://www.jxly.gov.cn/ • http://www.smforestry.com/ Transfer Information Bulletin

24. 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. Transferability of Forest Tenure

25. 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 Transferability of Forest Tenure

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

27. Transferor Term Forest Tenure Price Mechanism Mode Transferee Market Operation Forest Tenure Market Regulation Destination

28. 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 Forest Tenure Market

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

30. Forest Tenure Market • Transfer Types and Objects

31. Forest Tenure Market • Transfer Types and Objects

32. Forest Tenure Market • Transfer Types and Objects

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

34. Forest Tenure Market • Price System for a Transfer Contracted for 30 years in 2006

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

36. Process in the Transfer Center Forest Tenure Market

37. Process in the Transfer Center Forest Tenure Market

38. Forest Tenure Market • Comparative Analysis on these two Transfer

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

40. 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

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

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

43. 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

44. SWOT analysis on the Transfer Center Discussion

45. 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

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

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