Page "Socialist law" Paragraph 19

This has a number of consequences.

One of them is that, because the farmer does not have an absolute right to transfer the land, he cannot borrow against his use rights.

On the other hand, there is some insurance against risk in the system, in that the farmer can return his land to the village committee if he wants to stop farming and start some other sort of business.

Then, if this business does not work, he can get a new contract with the village committee and return to farming.

The fact that the land is redistributable by the village committee also ensures that no one is left landless ; this creates a form of social welfare.