Forest Cutting Quota and Farmer's Production Decision in Collective Forest Tenure Reform

With the advancing of collective forest tenure reforms, the trees' ownerships, disposal rights and usufruct have been given back to farmers, but the contradiction between cutting quota and farmers' operating the woodland or trees becomes salient. According to forest income model, this paper makes a theoretical analysis about the impaction of forest cutting quota on production decision by farmers. And based on the 314 households surveys coming from the eight counties such as Jianping, Huanren, Fushun in Liaoning province, this paper establishes Heckman two-step model, analyzes the impaction of forest cutting quota on production decision by farmers in forest tenure reform, and regression analysis results show that forest cutting quota restrain farmers' production investment. Finally it proposes that ease cutting quotas according to forest management types and give the farmer economic compensations who couldn't get cutting quota on time.