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Agriculture land use right transfer (ALURT) is a new policy designed to meet the demand of the sustainable development of agriculture in China. In the Heihe river basin (HRB), ALURT has also recently been introduced to cope with the emerging challenges in agriculture. In this paper, we empirically study the long-term viability of this new policy in HRB using a sustainability assessment. We collect the documents of ALURT contracts, statistical data of ALURT performance, and conduct interviews with its users. The main finding is that the centralized institutional structure of ALURT in HRB compromises its long-term viability. In particular, the power imbalance under the regulation of the intermediate agency, which causes the dissatisfaction of the participants, is threatening the application of the ALURT policy in the long run. Therefore, we suggest that the role of the intermediate agency in ALURT needs to be redefined, to better serve the sustainable development of agriculture in HRB.

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