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For some, urbanization means easy money

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Uncertain future

However, not everyone agrees with Yang, and some of his neighbors with more moderate incomes are worried that taking the land away from them is like cutting off their last thread of security.

"(The compensation) sounds like a lot but actually, on average, each person owns only 1.5 mu of land, at most 2 mu," said Xu Jianzhong, 40.

Despite his concern, Xu actually stands to receive a hefty amount in compensation. He earns about 80,000 yuan a year from growing vegetables on 5 mu of farmland, which he owns along with his mother and his wife. The family also runs a small grocery store, which adds another 20,000 yuan to their annual income.

"The ownership of the land will expire in another 16 years if not for the land acquisition, so that makes life a lot easier for me."

Under Chinese law, farmland is collectively owned, with small plots allocated to farmers on long-term leases.

Xu will also automatically be registered for a pension when his land is taken, meaning he will receive about 400 yuan every month after he turns 60.

Liu Jinshan stands outside his abandoned greenhouse in Hongxing village. The land has been barren since he sold it to the local government for 2.4 million yuan. [China Daily]

Yet he still feels insecure about the future.

"Compensation of 1.5 million yuan probably sounds like an enormous figure for now but think about what that money means in 10 years," he said, adding that he fears the money will devalue as inflation continues. "Think about the expensive education and medical services."

His concern is typical among farmers who have lost their land in the rapid progress of urbanization in the nation, according to Wang Kaiyu, a researcher at the Anhui Academy of Social Sciences.

Without proper education and training, farmers find it difficult to find stable jobs in cities and they have no land to fall back on, he said.

Liu Shilin, the village Party secretary, also feels anxious about life after relocation.

"I thought the compensation would be good for our village, but when I saw some of them spending heavily on cars, properties and luxuries, I realized that sudden wealth may not be a good thing," he said.

He insisted that Hongxing officials have repeatedly warned residents to be careful about their consumption. "We have to be prepared for the bad days," said Liu. "People aged between 40 to 60 worry me most."

The village government now plans to rent about 1,000 mu of farmland in nearby Hongqi village until 2027 so that experienced farmers can continue with their greenhouse vegetable planting.

"Vegetables from Hongxing have already become a famous brand in Harbin," said Liu proudly. "The villagers have abundant skills and experience, and they want to find something to do instead of being idle."

Sharing the benefits

In recent years, land acquisition and relocation projects have become one of the most controversial issues in China, with forced demolition in some places arousing violent protests, including even self-immolation by so-called "nailhouse tenants".

But the wind of change is blowing and major cities are now exploring what experts call "the new path of urbanization", which sees authorities make interest concessions to allow farmers to get a larger share of the profits from land sales.

Hongxing village is not the only one that has benefited from this "new path".

Located in the northeast part of Beijing, Dawangjing village is home to another legend of overnight wealth.

After a real estate company purchased a plot of land near the village for 27,500 yuan per square meter in March - the most expensive piece of property in the capital - land prices in nearby areas have soared.

As a result, the relocation project has brought Dawangjing's residents millions in compensation.

Besides purchasing cars, some villagers reinvested the money in property or played the stock markets, hoping to generate more returns, Beijing News reported.

Allowing farmers to enjoy more benefits from rapid urbanization is a good starting point for social inclusion, which boosts social and economic development in the long run, according to Liu Shouying, a researcher with the State Council Development Research Center's rural economy institute.

The previous model - in which the government received the lion's share from land sales - has pushed farmers to the brink of survival, he said.

Land sales in China totaled 1.59 trillion yuan last year, up more than 63 percent over 2008, showed a report by the China Index Academy, which added that several cities, including Beijing, depend on such deals for almost 50 percent of their fiscal income.

"Without a stable job, farmers' incomes dropped significantly, as well as their quality of life. This contributed to the increase of large-scale incidents in some cities," said researcher Liu Shouying. "This path of urbanization is simply unsustainable."

A better way would be to reserve land for farmers to develop suitable industries, he suggested.

When city governments make plans for industrial development, they have to include the farmers who sacrificed their land for those projects, so as to ensure the country's rapid urbanization progress will benefit all, he added.

The pace of urbanization has accelerated in China in recent years, with the rate rising from 27 percent in the early 1990s to 47 percent in 2009, according to a report from National Bureau of Statistics.

However, analysts agree that the trend is not going to stop - especially while the country's urbanization rate is still below the world average (about 50 percent) and far behind that of developed countries (85 percent).

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