"We will first ensure a sense of security and stability for farmers living on the farmland, and then encourage them to test themselves in market-oriented agricultural production," he said.

No easy change

Even if the policy is implemented, farmers may still be reluctant to sell their land-use rights, Xu said.

More farmers must give up rights to their farmland and property in the countryside to become urban residents and to make large-scale land transfers possible.

"The number of farmers decreases while the area of farmlands remains unchanged, and in this way, the scale operation of agricultural production will become possible," Xu said.

But this seems easier said than done. The Beijing Municipal Bureau of Land and Resources, for example, launched a pilot project in two towns in suburban areas in September 2003, allowing farmers to transfer, lease or convert as investments their housing land-use rights. The project turned out to be a failure, because few farmers and villages tried to make money on their land-use rights, partially due to the fact that they were unclear about the rights.

Xu believes putting a formal market in place for selling land-use rights would help promote the transfers. It also would serve to inform farmers of their rights and limitations, and the effective protection of their rights.

"The most important thing is making the land contract relationship a long-term policy and a relationship that enjoys substantial protection and allowing no administrational interference," Xu said.

The smooth transfer of land also will depend on whether the rural population can find stable jobs in the industrial and service sectors, he said. Chen warned of the possible threat to grain security because many of farmlands now functioning as large-scale operations grow fruits, vegetables, flowers or herbs, all of which give them higher economic returns.

"I believe we should moderately promote land transfers in order to maintain a balance in agricultural product structure," Chen said.