Abstract: In recent years, some of the economically developed areas in Jiangsu province had implemented the centralized and contiguous transfer of village collective organizations, which had effectively solved the problems of farmland fragmentation and market failure, while the underdeveloped areas also had the conditions for centralized and contiguous transfer. However, in the process of coordinated transfer, it was difficult to achieve a unified transfer because of the great differences in the willingness of compensation among the scattered transferors, the self tillers and the land transferors. The land transfer subsidy policy of centralized and continuous transfer can achieve the potential welfare on the basis of achieving the minimum participation rate. Based on the perspective of stakeholders, this study calculated the welfare changes of villages in underdeveloped areas of Jiangsu province when simulating the implementation of different subsidies, and drew the conclusion that the farmland centralized and contiguous transfer subsidies can help to achieve the overall welfare growth of most villages in three counties of Jiangsu province, but it need larger financial expenditure, and the efficiency of policy implementation will be reduced when the amount of subsidies increases.

Key words: farmland centralized and continuous transfer, stakeholders, potential economic welfare, supply-side subsidy, three counties in Jiangsu province