Compensation payments made to farmers whose land is seized by the state could be tied to a market rate under plans being examined by the National Development and Reform Commission, the Financial Times reported. Given that the current system sees compensation calculated according to the agricultural value of the land, a market-based approach is likely to dramatically increase the amounts paid to rural residents. The government hopes that this would not only cut down on social tension surrounding land disputes but also prevent local authorities and developers from making huge profits from the subsequent sale of the land for commercial use. �Our current system for requisitioning rural land has not kept pace with the needs of the time and must be reformed,� said Du Ying, an NDRC deputy minister.