The right to contracted management of land refers to the right of farmers or rural collective economic organizations to possess, use, benefit and transfer agricultural land such as cultivated land, forest land and grassland owned by farmers collectively or the state according to law.

Mortgage of land contractual management right can obtain bank loans, which is a kind of utilization of land resources, so that contractors can either obtain funds to develop land contractual management right or engage in other non-agricultural industries with financing funds. On the one hand, it can solve the problem of surplus labor force to a certain extent and avoid the idleness of labor force, on the other hand, it can increase farmers' income and promote rural economic development. Because agriculture is a process of economic production and natural production, whether land is produced depends largely on natural factors, and non-agricultural income sources can be reduced.

The realization of mortgage of land contractual management right often means that the resources of land contractual management right have changed from the subject with insufficient capital to the subject with sufficient capital. Generally speaking, this situation is conducive to improving land use efficiency.