Unleashing the Force Of Agriculture

By+Deng+Yaqing

Liu Tianhua， a farmer in Zhoukou， central Chinas Henan Province， established Tianhua Farming Specialized Cooperative in his hometown in 2009. The cooperative now operates 733 hectares of farmland， with fixed assets exceeding 20 million yuan （$3.19 million）.“My greatest wish in 2015 is favorable weather and more supportive policies，” Liu said.

Lius cooperative has evolved into a comprehensive farming entity， the business of which encompasses planting， land transfer， warehousing， processing of agricultural products， lease of agricultural machinery and technical assistance.

“In 2014， rural reforms were carried out in steady steps，” said Chen Xiwen， Deputy Director of the Central Rural Work Leading Group， which is Chinas top agency in charge of rural work and agricultural affairs. He stressed that authorities have pushed reforms regarding pricing policies for some crops， registration and confirmation of farmers rights to their contracted lands， transfer of land use rights and transformation to largescale farming.

On February 1， the Central Committee of the Communist Party of China and the State Council， Chinas cabinet， jointly released their first policy document in 2015， informally known as the No.1 Document. Modern farming and rural reform are high on its agenda. Since 2004， issues concerning agriculture， rural areas and farmers have been the focus of central authorities No.1 documents for 11 years in a row.

Compared to double-digit expansion over the past few decades， the Chinese economy has entered a “new normal” of moderate and more stable growth. Chen said that the economic growth slowdown has exerted an influence on supply and demand as well as fiscal revenue of the government， which will undoubtedly pose a new challenge to agricultural development.

He believes the “new normal” will also have a positive impact. “Under the ‘new normal， attention will be shifted from GDP and output growth to the quality and efficiency of economic development and production， which will create a propitious atmosphere for the transformation of agricultural development model， the improvement of production structure and the integration of the agricultural， manufacturing and service industries，”Chen said.

Highway to modernization

Chinas grain output hit 607.1 million tons in 2014， up 0.9 percent year on year； its rural percapita net income stood at 989 yuan （$158）， an increase of 9.2 percent after adjusting for inflation， according to statistics from the National Bureau of Statistics. The income of rural resi-dents grew faster than that of urban residents.

While great achievements have been made in agricultural development， the pressure to do more lingers.

“Equal emphasis should be laid on elevating output， quality and efficiency，” said Han Jun， Deputy Director of the Office of the Central Rural Work Leading Group.

Chen noted that the greatest challenges to agricultural development now come from rising production costs and a deteriorating ecological environment.

Currently， production costs of major agricultural crops in China are higher than imports. “Since China has a huge population engaged in agriculture and household-based farming is usually small-scaled， it is difficult to lower production costs，” Chen said.

As was stressed during the Central Rural Work Conference held at the end of last year， registration and confirmation of farmersrights to their contracted lands should be accelerated and transfer of land use rights should be encouraged to develop large-scale farming.

“In the past， Chinas agricultural development was resource-intensive. To balance the importance of quantity， quality and efficiency， efforts should be made to propel scientific and technological progress and raise farmers awareness of modern farming techniques，” Han said.

According to statistics from the Ministry of Agriculture （MOA）， the contribution rate of science and technology to agricultural development has reached 57 percent in China， and the countrys comprehensive agricultural mechanization rate has surpassed 60 percent. Farmlands managed by largescale farming entities， such as family farms and farmers cooperatives， have accounted for roughly one third of the total contractual lands.

China needs a new agricultural management system and new operating entities are encouraged to develop various forms of large-scale farming， says the No.1 Document. According to statistics from the MOA， there have been 870，000 family farms and 1.21 million farmers cooperatives in China， which have greatly boosted efficiency of agricultural production.

“New land management approaches and the development of agricultural science and technology will significantly facilitate agricultural modernization，” said Yang Jianbo， Director of China Agro-Technological Extension Association.

In addition， the No.1 Document also pays attention to the integration of the agricultural， manufacturing and service industries. It means expanding the agricultural industry from simple grain production to include the processing and circulation of agricultural products and leisure farming， prolonging the industry chain in an effort to boost value-added of agriculture and farmers incomes.

“Take eco-agricultural tourism for example. A total of 1.2 billion tourists traveled to rural areas last year， bringing about 320 billion yuan（$51 billion） in revenue to farmers and make 33 million rural residents live a better-off life，” Chen revealed.

A better countryside

“Agricultural development should not blindly pursue high yields and heavily rely on resource consumption，” the No.1 Document states， suggesting protecting and improving the quality of arable land， pushing forward structural adjustment and highlighting the role of scientific and technological innovation.

The old development model that has severely overdrawn soil fertility and capacity has come to an end， said Zhu Lizhi， a research fellow with the Chinese Academy of Agricultural Sciences. He added that the transformation of the development model will help China foster its agricultural competitiveness.

In addition， the No.1 Document proposes to quicken infrastructure construction and expand the coverage of basic public services in the countryside， make access to electricity available to rural residents in areas which are not covered by power grids， improve rural residents living environment and promote ethical progress in rural areas.

Different from the past， while attaching importance to the construction of water-， power- and road-related projects， this years No.1 Document also stresses the importance of building cultural facilities in rural areas.

“For the first time， the government proposes to encourage more private investment in rural construction， which will make the construction of new countryside more sustainable and deliver more tangible benefits to farmers，” said Li Guoxiang， a research fellow with the Chinese Academy of Social Sciences.

Beyond that， the government has decided to accelerate the improvement of legal systems concerning agricultural and rural development. Zheng Fengtian， a professor at the School of Agricultural Economic and Rural Development of Beijing-based Renmin University of China， noted that the rule of law plays an irreplaceable role in tackling issues concerning agriculture， rural areas and farmers.

“Rural reform will inevitably involve interest adjustment， and putting a sound legal system in place can guarantee its smooth implementation and safeguard farmers rights and interests，” Zheng said.