Abstract:  Because of the policy disparity between State expropriation and collective diversion, there is a great gap in the allocation of land value increment in the process of transforming agricultural land to nonagricultural uses. From the perspective of the gap out of the two different ways of land use transfer, this paper analyzes the original intention of the policy from its evolution, and deems that it is not intended to encroach the land value increment of the peasants. The policy of transforming agricultural land to nonagricultural uses, directly or indirectly affects the land value increment of the related land. The disparity in the policies leads to the imbalance in the profit distribution of the land value increment. In the State land expropriation, the coexistence of public interest and business interest makes the local government transform from a management government to operating government; the legal and illegal handling coexist in transforming agricultural land to nonagricultural uses which leads to the chaos in the distribution of land value increments. The upstarts coexist with farmers without land, job or social security in the compensation for land expropriation, making land requisition trapped in a compensation dilemma.  

Key words: Peasants Land Policy, State land expropriation, Collective diversion of agricultural land, Land value increment