Study on the Impact of Rural Homestead Land Use Rights Mortgage Loans on Farmers’ Income Increase: Evidence from Yongfeng County, Jiangxi Province

The mortgage loan of the right to use rural homesteads can release the asset value of a large amount of idle real estate in rural areas. It is not only an effective means to meet the growing material needs of farmers but also an important measure to promote rural economic development. Based on the survey data from 284 rural households in Yongfeng County, Jiangxi Province, this paper empirically examined the impact of the mortgage loan of the right to use rural homesteads on the income growth of rural households by using the propensity score matching method. The findings were as follows: The mortgage loan of the right to use rural homesteads had a significant promoting effect on income growth for rural households. This effect was more pronounced among households whose primary occupation was farming. In terms of the return rate of the use of mortgage loan funds, the income-increasing effect of productive investment was more than short-term capital turnover. Additionally, both the area of rural homesteads and its usage status played a positive moderating role in the income growth effect facilitated by such mortgage loans. Based on these findings, efforts should be made to strengthen the promotion of the mortgage loan policy for rural homesteads use rights, encourage financial markets to offer diversified financial products, and accelerate the process of confirming and certifying rural homesteads land use right.