Contents

Chapter I General Provisions

Chapter Ⅱ Contracting by households

Section 1 Rights and Obligations of the Contract-Letting Party and the Contract-Undertaking Party

Section 2 Principles and Procedures of Contracting

Section 3 Contracting and Duration of Contracting

Section 4 Protection of the Right to Operate Contracted landing

Section 5 Circulation of the Right to Operate Contracted landing

Chapter Ⅲ Contracting Concluded by Other Means

Chapter IV Settlement of Disputes and Legal Responsibility

Chapter V Supplementary Provisions

Chapter I General Provisions

Article 1 The present Law has been formulated in accordance with the Constitution for the purpose of stabilizing and perfecting the two-level operation system, which is based on the household system of contracted responsibility and on the responsibility system of contracting by households supplemented by unified management, entitling the peasants to a long-term and guaranteed right to the use of land, protecting the legal rights and interests of the parties of the contracting of rural land, so as to improve the development of agriculture and the rural economy and stabilize the rural areas.

Article 2 “Rural land” as mentioned in the present Law refers to cultivated land, forestry land, grassland, and land for other agricultural uses owned by collectives or the State and exploited by agricultural economic collectives.

Article 3 The State applies a system of contracting for operation of rural land.

Contracting of rural land shall be fulfilled in the form of contracting by households within the economic organizations of the collectives. Rural lands such as barren mountains, waste, ditches, barren hills and waste beaches, which are not suitable for contracting by households, shall be contracted by means of bid invitation, auction, or open negotiation.

Article 4 The State protects the long-term stability of the relationships of the contracting of rural land.

The nature of the ownership of the rural land shall not be altered when such land is contracted. The contracted land shall not be sold or bought.

Article 5 Members of the economic organizations of the rural collectives shall, in accordance with law, have the right to contract a rural land awarded by the economic organizations of their collectives. The rights to land contract of members of the economic organizations of the said rural collectives shall not be exploited or constrained by any organizations or individuals.

Article 6 Man and women shall have the equal rights to contract the rural land. The women’s lawful rights to land contract shall be protected. No organizations or individuals shall exploit or infringe upon the right to operate contracted land that women shall enjoy.

Article 7 The principle of openness, equality, and fairness shall be practiced in the contracting of rural land. The relationship among the State, the collectives and the individuals shall be properly handled.

Article 8 The contracting of rural land shall be conducted according to the laws, rules and regulations, and in conformity with the protection of rational development and sustainable utility of land resources. The contracted rural land shall not be used for non-agricultural construction without through lawful approval.

The state encourages peasants and economic organizations of the rural collectives to increase input in the land, better the soil fertility, and improve the agricultural production capability.

Article 9 The state protects the legitimate rights and interests of the owners of the collectively-owned land, protects the contract-undertaking party’s right to the operation of contracted land. No unit or individual may infringe upon theses rights and interests.

Article 10 The state protects the contract-undertaking party’s right to transfer the operation of the contracted land lawfully, voluntarily, and for compensation.

Article 11 The agricultural administration departments and the forestry administration departments shall, in accordance with the duties and responsibilities authorized by the State Council, respectively be responsible for the guidance of the land contracting and the management of the contractual contracting. The agricultural administration departments and the forestry administration departments of the people’s governments at or above the level of the county shall, in accordance with the stipulated duties and responsibilities, be responsible for the guidance of the land contracting and the management of the contracting in their areas. The people’s government of township (town) shall be responsible for the guidance of the land contracting and the management of the contractual contracting in its area.

Chapter ⅡContracting by households

Section 1 Rights and Obligations of the Contract-Letting Party and the Contract-Undertaking Party

Article 12 Contacts of land owned by peasant collectives that belongs lawfully to peasant collectives of a village shall be let by collective economic organizations of the village or by villagers’ committees; contracting of land already owned by different peasant collectives that belong to two or more different collective economic organizations in the village shall be let by the rural collective economic organizations in the village or by villagers’ groups. Contracting let by the village collective economic organizations or by the villagers’ committee shall not alter the ownership of the land belonging to peasant collectives of every collective economic organization in the village.

Contracting of the state-owned rural land which is lawfully determined to be used by peasant collectives shall be let by rural collective economic organizations, villagers’ committee or villagers’ groups that use the said land.

Article 13 The party that lets the contract shall enjoy the following rights:

(1) letting the land owned by the said collectives or the stated-owned rural land which is determined to be use by the collectives;

(2) supervising the contract-undertaking party to rationally use and protect the land according the agreed purpose of use specified in the contract;

(3) checking up the contract-undertaking party’s activities that encroach upon the contracted land and agricultural resources; and

(4) other rights as stipulated by laws or administrative rules and regulations.

Article 14 The party that lets the contract shall bear the following obligations:

(1) Sustaining rights of the contract-undertaking party to the use of the contracted land; rather than unlawfully modifying or rescinding the contract;

(2) Esteeming the decision-making powers for the production and operation of the contract-undertaking party rather than interfering with the normal production operation activities undertaken by the contractor according to the law;

(3) Supplying for the contract-undertaking party the services of production, technology and information according to the agreement concluded in the contract;

(4) Implementing the overall plans for the use of land drawn up by counties, townships (towns); organizing the construction of the agricultural infrastructure in its collective economic organizations; and

(5) Other obligations as stipulated by laws, or administrative rules and regulations.

Article 15 The party undertaking the contracting by households shall be a farmer of the economic organizations of the said collectives.

Article 16 The contract-undertaking party shall enjoy the following rights:

(1) Enjoying the right to the use of, and profits and interests from the contracted land, and to the circulation of the operation of the contracted land; enjoying the decision-making power to organize production operation and dispose his products;

(2) Enjoying the right to the compensation for the contracted land if such land is lawfully requisitioned, or used for non-agricultural construction; and

(3) Other rights as stipulated in other laws, or administrative rules or regulations.

Article 17 The contract-undertaking party shall bear the following obligations:

(1) Sustaining the agricultural purpose of use of the contracted land rather than utilizing such land for the purpose of non-agricultural construction;

(2) Protecting and rationally using the contracted land according to laws, rather than imposing perpetual damage to such land; and

(3) Other obligations as stipulated by laws, or administrative rules or regulations.

Section 2 Principles and Procedures of the Contracting

Article 18 Contracting of land shall be practiced in accordance with the principles as follows:

(1) If the undertaking of contracting of land is organized in a unified way according to provisions, members of the collective economic organizations of such land shall lawfully enjoy the equal rights to contract for the land, or give up the right to contract for the land;

(2) The contract shall be undertaken through democratic consultation, and fairness and rationality.

(3) The projects for the contracting shall, in accordance with the provisions stipulated in Article 12 of the present Law, be agreed to by at least two-thirds of the members of the villagers assembly or of the representatives of villagers of the said collective economic organizations; and

(4) The procedures shall be lawful.

Article 19 The contract of land shall be undertaken in conformity with the following procedures:

(1) A group in charge of the contract work shall be elected by the villagers assembly composed of the members of the collective economic organizations;

(2) Projects for contracting shall be drawn up and made public by the group in charge of the contract work in accordance with provisions of laws or regulations;

(3) Villagers assembly of members of the collective economic organization shall be held so as to pass contract projects through discussion;

(4) Projects for the contracting shall be openly organized and implemented; and

(5) Contracting shall be concluded.

Section 3 Contracting and Duration of the Contracting

Article 20 The duration of a contract for cultivated land shall be 30 years. The duration of a contract for grassland shall be between 30 years to 50 years. The duration of a contract for forest land shall be between 30 years to 70 years. The duration of a contract for special forest land may be extended upon approval of forestry administration departments under the State Council.

Article 21 A written contract shall be concluded by the party that lets the contract and the party that undertakes the contract.

In general, a land contract shall include the following provisions:

(1) Names of the party letting the contract and the party undertaking it; names of persons of the contract-letting party who are responsible for the contract, names of representatives of the contract-undertaking party, and their respective domicile;

(2) Such things as name, location, size and quality of the contracted land;

(3) Duration of the contract and the beginning and terminating dates;

(4) Purpose of use of the contracted land;

(5) Rights and obligations enjoyed and borne by the party letting the contract and the party undertaking it; and

(6) Liability for breach of contracting.

Article 22 A land contract becomes effective from the day when it is established. The party that undertakes the contract shall acquire the right to operate the contracted land when the contract becomes effective.

Article 23 The certificate of right to operate a contracted land and the certificate of forest right shall be issued to the contract-undertaking party and shall be registered with and recorded by local people’s governments at or above the country level, which shall confirm the right of the operation of the contracted land.

The governments shall not charge any fees other than the cost of making the two kinds of certificate.

Article 24 After the land contract becomes effective, the party letting the contract shall not, as a result of the change of the person who proceeds or is in charge of the contract, modify or rescind the contract; nor shall the party letting the contract, as a result of the division or merger of the collective economic organizations, modify or rescind the contract.

Article 25 No state organ or the functionaries thereof may, by taking advantage of their functions and powers, interfere with the contract of rural land, modification of the contract, or rescission of the contract.

Section 4 Protection of the Right to Operate Contracted land

Article 26 Within the duration of the contract, the party that lets the contract shall not withdraw the contracted land.

Within the duration of the contract, if the household that undertakes the contract shifts to a small town and settles down there, its right to operate the contracted land shall be sustained, or its lawful right to circulate the operation right of the contracted land shall be permitted according to its free will.

Within the duration of the contract, if the household that undertakes the contract shifts to a city that is divided into regions, thereby becoming a non-agricultural household, the cultivated land and the contracted grassland shall be returned to the party that gives out the contract. If the household undertaking the contract refuses to return such land, the party that gives out the land shall be entitled to withdraw it.

Within the duration of the contract, when the party undertaking the contract returns the contracted land to the party that gives out the land or when the party that gives out the contract lawfully withdraws the contracted land, if the input of the party undertaking the contract improves the production capability of the contracted land, it shall deserve a corresponding compensation.

Article 27 Within the duration of the contract, the party that lets the contract shall not readjust the contracted land.

Within the duration of the contract, if readjustment of cultivated land or grassland which is contracted to some contract-undertaking party is necessary due to such special events as natural calamities that greatly damage the contracted land, it shall be subject to the consent of at least two-thirds of the members of the villagers assembly or of the representatives of villagers of the said collective economic organizations, and shall be submitted to the people’s government of the township (town) and to the agricultural administration department of the people’s government at or above the county level for ratification. If the parties agree not to readjust the contracted land in the contract, the agreement concluded in the contract shall be applied.

Article 28 The following pieces of land shall be used for readjustment of contracted land or be contracted to newly added population:

(1) Mobile land reserved in advance by the economic organization collectives;

(2) Increased land owned through such means as reclaiming; and

(3) Land lawfully returned to the contract-letting party by the contract-undertaking party according to its free will.

Article 29 Within the duration of the contract, the contractor may voluntarily give the contracted land back to the party awarding the land. If the contract-undertaking party does so, it shall advise the party that awards the land in written form half a year in advance. If the contract-undertaking party returns the contracted land within the duration of the contract, it shall not require any land to be contracted to him.

Article 30 Within the duration of the contract, if a woman gets married but no land is contracted to her in her new domicile, the party that lets the land shall not withdraw the land originally contracted to her; if a women gets divorced or becomes a widow, but she still resides in the original place or although she resides in a new place but it fails to contract land to her, the party that let land to her shall not withdraw the land originally contracted to her, either.

Article 31 Benefits obtained form the contracted land by the contract-undertaking party shall be inherited in accordance with the provisions of the Succession Law of the People’s Republic of China.

In the case a contractor of forestland deceases during the term of a contract, the successor of the decreased contractor may continue the contract within the term of the contract.

Section 5 Circulation of the Right to Operate Contracted land

Article 32 Right to operate the contracted land obtained through the contracting by households may in accordance with the law be circulated by means of subcontract, lease, exchange, or transfer or by other means.

Article 33 The following principles shall be abided by in the circulation of right to operate the contracted land:

(1) Exercising equal consultation, voluntariness, making compensation; no organizations or individuals shall force the contract-undertaking party to circulate the contracted land or prevent him from do so;

(2) The nature of the ownership of the contracted land and its use for agriculture shall not be altered;

(3) The term for the circulated contract shall not exceed the surplus of the duration of the contract already concluded;

(4) The party to whom the land is transferred shall have the operation capability; and

(5) Under the same condition members of the economic organizations of the said collective shall be entitled the priority.

Article 34 The subject of the circulation of the right to operate the contracted land shall be the party to whom the land is contracted. The contract-undertaking party shall have the right to decide by itself whether to circulate the contracted land or not according to the law and to decide upon the ways of circulation.

Article 35 Within the duration of the contract, the party that lets the contract shall not rescind the contract unilaterally; nor shall it coerce the contract-undertaking party to abandon or modify the right to operate the contracted land by falsely exercising the practice that the minority should be obedient to the minority; nor shall it withdraw the contracted land, which will be exclusively used as land to be separated for grain ration field or responsibility field, so as to recontract the said land through bid invitation; nor shall it withdraw the contracted land so as to compensate for debts.

Article 36 Fees of circulation of right to operate the contracted land through such means as subcontract, lease, transfer shall be determined by both parties through consultation. Remuneration from the circulation shall be owned by the party that undertakes the contract. No organizations or individuals shall intercept or deduct the remuneration without authorization.

Article 37 If the right to operate the contracted land has to be circulated by such means as subcontract, lease, exchange, transfer or by other means, a contract in written form shall be signed by both parties; if the circulation is fulfilled by means of transfer, such a matter shall be subject to the agreement of the party that lets the contract. If the circulation is fulfilled by subcontract, lease, exchange, or other means, it shall be submitted to the party that lets the contract for record.

A contract to circulate the right to operate the contracted land shall, in general, include the following terms:

(1) Name and domicile of both parties;

(2) Name, location, size, and quality grade of the circulated land;

(3) Duration of the circulation, and beginning and terminating dates of such circulation;

(4) Purposes of use of the circulated land;

(5) Rights and obligations of both parties;

(6) Price at which the land is circulated, and the way to pay the price; and

(7) Liability for breach of contract.

Article 38 In the event that the circulation of the right to operate the land contract is realized through exchange or transfer, if the parties require that the circulation be registered, an application for register shall be submitted to the local people’s governments at or above the county level. Without being registered, neither party shall resist the bona fide third party.

Article 39 The contractor may, within a certain time limit, subtract or lease the right to operate the contracted land partially or wholly to a third party, which shall not alter the contracting relationship between both parties.

If the contract-undertaking party assigns the land to a third party to cultivate it for less than one year, no written contract is compulsory.

Article 40 For the sake of cultivation or other various demands, contract-undertaking parties of the same economic organization of collectives may exchange the right to operate the contracted land that belongs to the said economic organization.

Article 41 If the contract-undertaking party has non-agricultural occupations or has stable income resources, it may transfer, upon the consent of the party that lets the land, part or all of its contracted land to other households that are engaged in agricultural production operation, which shall establish a new contract with the party that lets contracting. As a result, the old contract between the original contract-undertaking party and the contract-letting party shall terminate simultaneously.

Article 42 For the purpose of developing agricultural economy, different contract-undertaking parties may, at their free will, establish a joint group to which they contribute their right to operate the contracted land, and engage in joint agricultural production.

Article 43 If the input of the contract-undertaking party to the land increases its production fertility, it may be entitled to relevant compensation when the circulation of the operation right to the land contract is realized.

Chapter Ⅲ Contracting Concluded by Other Means

Article 44 The present Law shall be applicable to the contracting established by means of auction, bid invitation, or open consultation for pieces of rural land such as barren mountains, waste ditches, barren hills and waste beaches which are not suitable for contracting by households.

Article 45 In the case that the rural land is contracted through other means, a contract shall be signed, in which such matters as the rights and obligations of both parties, and the term of the contract shall be agreed upon through consultation. In the case that land is contracted through auction or bid, the fees of the contract shall be determined by public bidding object or price bidding; in the case that a contract is concluded through open consultation, the fee of the contract shall be determined through mutual consent.

Article 46 Rural land such as barren mountains, waste ditches, barren hills and waste beaches may be contracted for operation directly through bid invitation, auction, open consultation or other means. Or contracted operation or contractual joint operation may be fulfilled after the right to operate such lands is divided into shares which shall be distributed among the members of the economic organizations of the collectives.

Contracting for barren mountains, waste ditches, barren hills and waste beaches shall be undertaken in accordance with relevant laws, administrative regulations, and shall be in conformity with the prevention of soil erosion and protection of ecological environment.

Article 47 In the event that rural land is contracted through other means, members of the economic organizations of the collectives of the land shall enjoy priority to operation right under the same condition.

Article 48 If the contract-letting party contracting its land to units or individuals that do not belong the economic organization of the said collectives, the contract shall have met in advance the consent of at least two-thirds of the members of the villages assembly or of the representatives of villagers, and the contract shall be submitted to the people’s government of the township (town) for approval.

In the case that land is contracted to units or individuals that do not belong to the economic organization of the said collectives, the contract-taking party’s credit and operation capability shall be examined before the establishment of the contract.

Article 49 In the event that rural land is contracted through such means as bid invitation, auction, and open consultation, if upon legitimate registration, certificate of the right to operate the contracted land or certificate of right to operate the forest land are entitled, the former right may according to the law be transferred, leased, used as shares or mortgages, or be circulated in other ways.

Article 50 In the event that rural land is contracted through such means as bid invitation, auction, and open consultation, if the contractor deceases, the remuneration out of the contract that should belong to the deceased contractor, shall be inherited in accordance with the provisions of the Succession Law of the People’s Republic of China; within the term of the contract, successors of the deceased may continue to fulfill the contract.

Chapter IV Settlement of Disputes and Legal Responsibility

Article 51 Where a dispute over the operation of contracted land arises, the parties may seek settlement through consultation between them, or through mediation by villagers’ committee or by people’s government of township (town).

If the parties refuse consultation or mediation, or if consultation or mediation fails, they may apply for arbitration to the arbitration organ of rural land contract, or they may directly bring a suit before the people’s court.

Article 52 If a party refuses to accept the arbitration award rendered by an arbitration organ of the rural land contract, it may bring a suit before the people’s court within 30 days from the date when it receives the arbitration award. If no suit is brought to the people’s court upon the expiration of the time limit, the arbitration award shall come into force.

Article 53 Any unit or organization that infringe upon the contract-undertaking party’s right to operate the contracted land shall bear civil liability.

Article 54 If the party that lets the contract carries out any of the following activities, he shall bear civil liabilities like cessation of infringements, return of original materials, rehabilitation of original condition, removal of obstacles, elimination of dangers, or compensation for losses:

(1) Interfering with the decision-making right of production and operation enjoyed by the contract-undertaking party according to the law;

(2) Withdrawing or readjusting the contracted land in violation with the provisions described by the present Law;

(3) Forcing or preventing circulation of operation right of land contract by the contract-undertaking party;

(4) Forcing the contract-undertaking party to circulate the operation right of land contract by means of giving up or modifying the operation right by falsely practicing that the minority shall obey the majority;

(5) Withdrawing the contracted land by exclusively using it as land to be separated for grain ration field and responsibility field, so as to recontract it through bid invitation;

(6) Withdrawing the contracted land as a compensation for debts;

(7) Exploiting or encroaching upon women’s right to operate the land contract; and

(8) Infringing upon right to operate the contracted land in other ways.

Article 55 Compulsory agreement established in a contract which is in violation of the contract-undertaking party’s free will, or in violation of the provisions of laws or administrative regulations which stipulate that no withdrawal or readjustment of contracted land shall be performed shall be null and void.

Article 56 If a party fails to perform its duty or fails to perform its duty in conformity with the agreement conclude in the contract, it shall bear liability for breach of the contract in accordance with the provisions of the Contract Law of the People’s Republic of China.

Article 57 Where any unit or individual forces the contract-undertaking party to practice circulation of the operation right of the land contract, such circulation shall be null and void.

Article 58 Where any unit or individual intercepts or deducts the remuneration out of the circulation of the operation right of land contract, the remuneration shall be returned.

Article 59 If anyone who, in violation of provisions of the laws and administrative regulations on land administration, illegally requisitions land, or uses land, or misappropriates compensatory capitals for the requisition of land, and if his case constitutes a crime, he shall be investigated for criminal responsibility in accordance with law; if he imposes infringement upon others, he shall be responsible for the damages and losses.

Article 60 If a contract-undertaking party, in violation of law, uses the contracted land for non-agricultural construction, he shall be given administrative sanctions in accordance with law by relevant administrative organs of the local people’s governments at or above the level of county.

If the contractor causes permanent damages to the contracted land, the party that lets the contract shall have the right to check up the damages, and shall have the right to demand compensation for such damages from the party that undertakes the contract.

Article 61 If state organs and their functionaries, by using their functions and powers, undertake such acts that infringe upon the operation right as intervening with the contract of rural land, modification or elimination of contracting, or intervening with the contractor’s decision-making operation right of production and operation, or forcing, preventing circulation of the contractor’s operation of the land contract, and if the infringement causes damages to the contract-undertaking party, they shall be responsible for compensation for the damages; if the infringement is serious enough, they shall be given administrative sanctions by the organ at their next higher level, or the people who are directly be in charge of the infringement shall be given administrative sanctions by the units to which they belong; if the case constitutes a crime, they shall be investigated for criminal responsibility in accordance with law.

Chapter V Supplementary Provisions

Article 62 If prior to the implementation of the present Law, rural land has been contracted in accordance with relevant laws of the State, whose duration exceeds the duration that is stipulated in the present Law, the contract shall remain effective and no contract shall be concluded again. If no certificates of right to operate land contract or certificates of forestland has been issued, such certificates shall be issued.

Article 63 If, prior to the implementation of the present Law, mobile land is reserved, the size of such reserved land shall not exceed 5 percent of the total land of the economic organizations of the collectives. If the reserved land takes up less than 5 percent of the total land, no more mobile land shall be added.

If, prior to the implementation of the present Law, no mobile land is reserved, no such land shall be reserved when the present Law comes into effect.

Article 64 Standing Committees of the National People’s Congress of provinces, autonomous regions, and municipalities directly under the Central Government may, in accordance with the present Law, and in light of their respective practical situations, make up plans for the implementation of the present Law.