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VOL.5 March 2013
Developing Modern Agriculture

In China, the first document issued every year by the Central Committee of the Communist Party of China (CPC) and the State Council is referred to as the "No.1 Central Document." 2013 marks the 10th consecutive year in which the document has focused on rural issues. This year's document highlights the significance of promoting modern agricultural practices to strengthen the vitality of rural areas. Chen Xiwen, Director of the CPC Central Committee Rural Work Leading Group, recently explained China's newest plans to speed the spread of modern agricultural practices and ways to enhance rural development. Excerpts follow:

China produced more than 589 million tons of grain in 2012, an 18 million ton increase from the previous year. This was the ninth consecutive year of increased grain harvests, according to the National Bureau of Statistics.

China's impressive growth in the agricultural sector has made a remarkable contribution to reducing poverty in the country. Following in the steps of industrialization and urbanization, the country's agricultural and rural development has entered a new stage.

But this process has also been accompanied by some problems. The rural development is still facing three challenges: to build an affluent society over the next eight years, to cope with the shrinking number of rural laborer, and to increase grain production.

To meet these goals China has pledged to ensure grain supplies, increase farmers' incomes to improve their livelihood and push forward reforms in rural areas, according to this year's document.

Innovating the rural management system

Speeding the development of modern agriculture requires more than just funding, technology, materials and equipment. Other important aspects include making the rural management system more innovative and strengthening the vitality and vigor of the rural areas and farmers themselves.

Although China's grain harvests have broken records over past nine years, further increases in output will be more difficult. Rapid urbanization has led to declines in arable land area and the rural labor force as large numbers of rural laborers switch to non-agricultural jobs.

A smaller rural labor force means a need for higher production efficiency in China. Accordingly, the document prioritizes diversifying production patterns, and establishing large-scale, specialized, organized and new agricultural business entities.

According to the document, more subsidies will be granted to large-scale landholders, family farms and rural cooperatives to help them boost production.

But the new policy also imposes limits on commercial capital expenditures in rural areas, which are often used to purchase land for development.

Enterprises are encouraged to invest in rural production, such as in the industrialized agriculture sector and the fish and poultry raising industries. However, they are not allowed to compete with farmers for the use of farmland, which is reserved for agricultural production.

A regulation imposing stricter controls over the investment and supervision of commercial capital is currently in the works.

Ensuring food safety

The document also said that China will devote itself to building a better food safety supervision system and preventing pollution from affecting agricultural production and livestock and poultry farming.

At present, China's agricultural production primarily relies on family-based endeavors, and the status quo is proving hard to change.

Irregular feeding and fertilizing practices, along with the use of altered seeds and medicines are primary causes of food safety issues. The government should monitor food production starting at the source, and urge producers at every stage of the supply chain to act responsibly.

The spread of scientific and technological education is also necessary. Many farmers might use pesticides and fertilizers incorrectly due to a lack of scientific knowledge.

Reducing forced relocations

The document also noted that the government does not support local authorities destroying villages outside areas zoned for urban development to make way for large scale residential communities.

Farmers mainly live off agriculture. Rural employment problems cannot be solved by relocating and merging villages, which also hinders agricultural production as some farmers find it difficult to work in their fields afterward.

Local governments should fully respect the views of rural residents, and should not forcibly relocate those who do not wish to live in multi-story buildings.

Safeguarding grain security

Another top priority mentioned in this year's document is the country's grain security.

The volume of China's food imports has reached a new peak. In 2012, grain imports increased 3.3 percent to reach a record high of 77 million tons, including 58.4 million tons of soybeans, according to the Ministry of Agriculture.

Lower grain prices on the overseas market have made imports a more beneficial option for domestic buyers, which has led to an increase in grain imports.

In the context of economic globalization, it's advantageous to import some products that are not abundant in China, which not only helps stabilize domestic prices, but is also beneficial for exporting countries. China won't shut its door to the international grain market.

Although China's grain imports increased last year, it was basically self-sufficient in terms of major cereal production due to balanced market supply and demand.

China's grain imports will change in terms of product variety, but import volumes will stay stable for the foreseeable future.

 

 

 

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