Original Title: Notice of the Department of Agriculture and Rural Affairs of Shandong Province on Issuing the "Measures for Qualification Review, Project Approval, and Risk Prevention Regarding the Acquisition of Land Management Rights by Social Capital, Including Industrial and Commercial Enterprises, Through Land Transfer"
Chapter I General Provisions

Article 1  To strengthen the qualification review, project approval, and risk prevention regarding the acquisition of land management rights through transfer by industrial and commercial enterprises and other social capital, and to safeguard the lawful rights and interests of the parties involved in such transfers, these Measures are formulated in accordance with the "Rural Land Contract Law of the People’s Republic of China," the "Measures for the Administration of the Transfer of Rural Land Management Rights," the "Shandong Province Implementation Measures for the Rural Land Contract Law of the People’s Republic of China," and other relevant laws, regulations, and provisions, taking into account the actual conditions of Shandong Province.

Article 2  These Measures apply to qualification reviews, project approvals, and risk prevention management activities regarding the acquisition of land management rights through transfer by social capital, such as industrial and commercial enterprises (including legal persons, non-legal person organizations, or natural persons), within the administrative region of this province.

Article 3: The qualification review, project approval, and risk prevention regarding the acquisition of land management rights by social capital, such as industrial and commercial enterprises, through transfer shall adhere to the following principles:

(1) Compliance with Laws and Regulations. The procedures for the transfer of land management rights shall be lawful and compliant, adhering to the principles of legality, voluntariness, and compensation.

(2) Convenience for the public and businesses. Management and services shall be continuously optimized to ensure that parties involved in the transfer of land management rights experience fewer trips to government offices, greater transparency, and reduced burdens.

(3) Agricultural Land for Agricultural Use. Implement the strictest arable land protection system, strengthen control over the use of arable land, resolutely curb the “non-agricultural use” of arable land, and prevent the “non-grain use” of arable land.

(4) Protection of Rights and Interests. Uphold the foundational status of household-based contracted farming, implement the policy of “separation of three rights” for rural contracted land, and protect farmers’ contracted rights and interests in the transfer of land management rights in accordance with the law.

Article 4: Where social capital, such as industrial and commercial enterprises, acquires land management rights through transfer, a four-tier review and approval system involving provincial, municipal, county, and township-level governments shall be implemented. Specifically, this shall be organized and implemented by the agricultural and rural affairs departments of people’s governments at or above the county level and the rural land contracting management departments of township (town) people’s governments (including subdistrict offices; hereinafter the same).

No land management rights transfer activities may be conducted if an application for review and approval has not been submitted in accordance with regulations or if the review and approval process has not been passed.

Chapter II: Review and Approval

Article 5: Social capital, such as industrial and commercial enterprises, that acquires land management rights through transfer shall undergo qualification review and project approval procedures. The review and approval process primarily includes:

(1) Qualification Review. Industrial and commercial enterprises and other forms of social capital acquiring land management rights through transfer shall possess agricultural management capabilities or qualifications, have a good record of integrity and creditworthiness, and demonstrate strong capacity to ensure contract performance, payment, compensation for breach of contract, and risk prevention.

(2) Project Review. Projects operated by industrial and commercial enterprises and other social capital entities that acquire land management rights through transfer shall comply with requirements regarding territorial spatial planning, arable land use control, and agricultural industry planning; they shall not infringe upon the lawful rights and interests of rural collective economic organizations and stakeholders, nor shall they undermine comprehensive agricultural production capacity or the agricultural ecological environment.

Article 6: Where social capital, such as industrial and commercial enterprises, transfers land management rights within a township (town) area in a single transaction covering an area of 50 mu (inclusive) to 200 mu, the township (town) people’s government shall conduct qualification reviews and project reviews.

Article 7: Where social capital, such as industrial and commercial enterprises, acquires land management rights through transfer and falls under any of the following circumstances, the county-level people’s government shall conduct the review and approval:

(1) The area of land management rights transferred in a single transaction exceeds 200 mu (inclusive);

(2) Where land management rights are acquired through a single transfer across multiple townships within a county and cannot be split for separate review and approval;

(3) Acquisition of land management rights for an entire village (or village group) in a single transaction;

(4) Other acts of land management rights transfer specified by laws and regulations that require qualification review and project approval by the county-level people’s government.

Article 8: Where commercial enterprises and other forms of social capital acquire land management rights through a single transfer that involves two or more counties (cities, districts) within the same city and cannot be processed in separate review and approval procedures, the review and approval shall be conducted by the municipal people’s government.

Article 9: Where social capital, such as industrial and commercial enterprises, acquires land management rights through a single transfer involving two or more cities and the review and approval cannot be processed separately, the review and approval shall be conducted by the provincial people’s government.

Article 10: Applications for the review and approval of land management rights acquired through transfer by social capital entities such as industrial and commercial enterprises shall be submitted to the competent review and approval authorities in accordance with the provisions on hierarchical review and approval.

Article 11. Applications for review and approval shall be accompanied by the following materials:

(1) A letter of intent for the transfer of land management rights;

(2) Where collective land not yet contracted to individual households is involved, minutes of the villagers’ meeting or the villagers’ representative assembly of the collective economic organization shall be attached;

(3) Business license and identity proof of the legal representative (or person in charge), or identity proof of the natural person;

(4) A detailed list and site plan of the land management rights transfer;

(5) Proof of agricultural management capability or qualifications;

(6) Letter of Commitment to Integrity;

(7) Project planning documents, implementation plans, and other materials related to the agricultural business project.

Industrial and commercial enterprises and other social capital entities are responsible for the authenticity and accuracy of the materials provided. If false review and examination materials are discovered, the review and examination process shall be terminated if it has already been accepted; if a review and examination opinion has already been formed, such opinion shall be revoked, and any adverse consequences, including liability for breach of contract, arising therefrom shall be borne by the industrial and commercial enterprises and other social capital entities.

Article 12. The review and approval process shall be conducted in accordance with the following procedures:

(1) The transferee and the contracting party shall negotiate and sign a letter of intent regarding the transferred area, boundaries, term, and price. Where collective resources such as collective land not yet contracted to individual households are involved, the transfer must be approved through statutory procedures by a vote of more than two-thirds of the members of the village meeting or more than two-thirds of the village representatives of the collective economic organization, and a letter of intent must be signed with the collective economic organization.

(2) In accordance with the provisions on tiered review and approval, the transferee shall submit application materials for the review and approval of the transfer of land management rights to the rural land contracting management department of the township (town) people’s government or to the agricultural and rural affairs department of the local people’s government at or above the county level.

(3) The people’s government at or above the county level or the township (town) people’s government shall, in accordance with the law, organize relevant functional departments (agriculture and rural affairs, natural resources, ecological environment, etc.), representatives of rural collective economic organizations, farmer representatives, experts, and others to review and examine the land use, the transferee’s agricultural management capabilities or qualifications, and whether the management project complies with industrial development plans such as grain production. It shall issue a review and examination opinion within 20 working days from the date of acceptance.

Chapter III Risk Prevention

Article 13. People’s governments at or above the county level shall establish, in accordance with the law, a risk prevention system for the acquisition of land management rights through transfer by social capital, such as industrial and commercial enterprises. They shall conduct focused review, examination, and supervision of land management rights transfers involving large-scale, long-term, or whole-village (group) transfers, as well as those affecting a significant number of farming households, and shall promptly investigate, address, and correct any illegal or non-compliant conduct.

Article 14. People’s governments at or above the county level shall actively explore the establishment of a risk guarantee deposit system for the acquisition of land management rights through transfer by social capital, such as industrial and commercial enterprises, to prevent payment risks. They shall guide both parties in the transfer of land management rights to reasonably determine the transfer fee and its payment method, advocate for the determination and settlement of annual land transfer fees through “physical measurement and monetary payment,” and encourage the advance annual prepayment of land transfer fees to maximize the protection of the contractor’s rights and interests.

Insurance institutions are encouraged to provide various forms of insurance services, such as performance guarantee insurance, for the transfer of land management rights.

Article 15. The rural land contracting management departments of township (town) people’s governments shall provide a standardized contract template to parties who have reached an agreement on land transfer and shall guide them in signing the contract. Any provisions in the transfer contract that violate laws and regulations shall be corrected promptly.

Article 16. Adhere to the strictest arable land protection system and effectively ensure that agricultural land is used for agricultural purposes. Industrial development shall comply with the local overall plan for agricultural industrial development, and project construction shall comply with regulations on arable land use control and the management of land for agricultural facilities. Efforts shall be made to maintain a moderate scale of land operation while preventing the tendency to pursue excessively large-scale operations without regard to operational capacity and economic efficiency.

Article 17: Where a contracting party voluntarily entrusts the transfer of land management rights, a written letter of authorization for transfer shall be issued. Without the written authorization of the contracting party, no organization or individual shall have the right to decide on the transfer of the contracting party’s land management rights in any manner.

In cases of transfer involving an entire village (or village group), a written power of attorney or transfer contract shall be signed with each household.

Article 18. Local governments or grassroots organizations are strictly prohibited from forcing contractors to transfer land management rights to social capital, such as industrial and commercial enterprises, by means of setting quotas or assigning tasks.

Chapter IV: Supervision and Management

Article 19. People’s governments at or above the county level shall strengthen leadership over the work of social capital, such as industrial and commercial enterprises, acquiring land management rights through transfer, enhance supporting conditions, and ensure funding for such work. They shall improve the working mechanism led by the competent departments for agriculture and rural affairs, with relevant departments fulfilling their respective duties and coordinating closely.

Article 20. Agricultural and rural affairs (rural management) departments at all levels and township (town) people’s governments shall strengthen daily supervision of land management rights transfer contracts.

Article 21. The competent authorities responsible for the review and approval of land management rights transfers, as well as relevant staff involved in such reviews and approvals, shall strengthen their awareness of law-based administration and integrity, and improve their service capabilities and administrative efficiency.

Article 22. Relevant departments at all levels shall strengthen publicity and training regarding the review and approval of land management rights acquired through transfer by social capital, such as industrial and commercial enterprises, and make full use of modern communication methods and platforms to widely publicize laws and regulations on rural land contracting and management.

Article 23. The competent authorities for the review and approval of land management rights transfers at all levels and township (town) people’s governments shall strengthen the archival management of the review and approval process for the acquisition of land management rights by social capital, such as industrial and commercial enterprises, through transfer. All documents and materials related to the review and approval shall be filed item by item according to the application matters and properly preserved.

Chapter V: Supplementary Provisions

Article 24. Municipal and county-level people’s governments may, in accordance with these Measures, formulate detailed rules for the qualification review, project approval, and risk prevention regarding the acquisition of land management rights through transfer by social capital such as industrial and commercial enterprises. They shall, based on the actual conditions of their administrative regions, establish a system for conducting focused reviews, approvals, and risk prevention measures regarding the large-scale acquisition of land management rights by the same social capital (such as industrial and commercial enterprises) through multiple transfers within a certain period of time.

Article 25. These Measures shall come into effect on January 22, 2023, and remain valid until January 21, 2028.