In China, it is envisaged to reserve farmland through a compulsory acquisition system of rural land. The goal of this paper is therefore to examine its effect through the investigation of the nature of land supply behavior under a compulsory acquisition system of rural land. The results show, however, that the compulsory acquisition of rural land, in contrast to its original purposes, results in more land transactions from farmland to urban use than that under land market mechanisms. The results show that the constant compulsory acquisition price of farmland shuts down farmers' expectations of capital gain in regard to farmland reservation. When farmers can get only an agricultural income from farmland reservation, the compulsory acquisition of farmland becomes beneficial rather than when the land is reserved for agricultural use. As a result, farmers are very enthusiastic about the compulsory acquisition of rural land. The results show that local government agencies also have great incentives to transfer farmland to urban use more and earlier under a compulsory acquisition system of rural land instead of under market mechanisms. The reasons can be summed up as follows: First, these agencies have a relatively lower expectation of the benefits of farmland reservation because they cannot generate agricultural income with it. Second, because of financial difficulties and concern about policy changes, the agencies intend to have higher expectations of risks to delay the compulsory acquisition of rural land until later.

This paper develops a nonlinear spatial equilibrium model for analyzing the policy issues of international trade under imperfect competition. By introducing the mixed complementarity problem into the spatial equilibrium analysis, this model can be applied to evaluate issues about international trade and domestic support policies, including specific tariff, ad valorem tariff, tariff quota, export subsidy, production subsidy, production quota, consumption tax, and price floor. This model is then used to simulate international wheat trade with several supposed scenarios based on proposals for the new WTO agricultural negotiations from various countries and the agreement between China and the United States concerning China's accession to the WTO. The main findings of the simulations are as follows: 1. An extension of the existing WTO agricultural agreement would be favorable to the EU's wheat sector. 2. No great structural changes in wheat trade may arise if China joins the WTO. 3. Compared with the situation concerning an extension of the existing WTO agricultural agreement, the U.S. and the EU would markedly decrease their exports if the new WTO agricultural negotiation results were favorable from the point of view of exporting or importing countries. In either situation, China would increase its exports. 4. The inverse correlation between import volume and domestic production implies that almost all importing countries would be affected by the results of new WTO agricultural negotiations.

Japanese agriculture is actually undergoing absolute decline. Agricultural economics, as long as they recognize only agricultural facts, cannot check this decline. To work out a solution to this problem, two hidden powers must be found―one is the hiding power among the historical facts of modern society; the other is the hiding powers in Japanese agriculture. The modern society that we can understand through a general view of the twentieth century is characterized as a network of triplecracy (my coined word) organized under the dominant powers of econocracy (coined word; economic control), technocracy, and bureaucracy. Modern society has been in activitiy under this network since the Industrial Revolution as it aimed at the efficient maximization of productivity. Japanese agriculture, which had been included in the value system of industrial society, has now lost proper meaning and direction as a result of industrialization, especially because of the overuse of chemicals, the urbanization of rural society, and the domination by bureaucrats in agricultural policies. The proper meaning of agriculture implicates the durability, contentment, and joy of human life (including life, living, and life style). Agriculture life and human life are closely correlated, but the triplecracy of modern industrial society has neglected this proper meaning of agriculture. Agricultural economics has also neglected the agricultural values in human life. The New proposition of agricultural economics aims at the restoration of agriculture and human life by the propulsion of circulating techniques in agriculture, the innnovation of regional agriculture based on regional complexes, the recognition on important roles of agricultural education, and the restoration of joy in farmers' families. The reconstruction of agriculture means the restoration of normal human life.