Abstract:

To solve the problem of the longterm insufficient investment in comprehensive agricultural exploitation, this paper analyzed the institutional factor influencing the investment. There is a need to increase the agricultural investment in China so as to meet the sustainable agricultural development, and to improve the agricultural productivity and its international competence. By using rational expectation theory, this paper points out that insufficient investment is mainly due to investors' insufficient expectation, which in turn is mainly due to low profit and high risk, imperfect agricultural public institutions, graded finance institution, incomplete proper rights of cultured land, and insufficient rural social security institutions and banking institutions. There is also a need to improve the mechanisms for achieving a perfect public institution system for agricultural finance, and to secure proper rights of cultured land and rural society.

Key words: comprehensive agricultural exploitation, agricultural investment, rational expectation