China Farming Sees A Bright Future

The total Grain output in China was nearly 500 million tons in 2006. In the same year, the net income per farmer was more than 3500 yuan, or about 466 US dollars, which is seven percent higher than last year and which has increased by more than six percent in each of the last three years.



Yin Chengjie, the Vice Agricultural Minister of China, said that the government views rural economic development as its top priority.



"Since 2002, we have concentrated an immense amount of energy on solving the problems facing rural areas and farmers. Meanwhile, lots of special policies assisting and favoring agriculture have been implemented."



Wang Zhaodai is a farmer in Zibo, located in eastern China's Shandong province. This August, he bought a big tractor and a corn combine harvester at a preferential price, utilizing the agricultural assistance policy.



"Thanks to the agricultural assistance policy; I saved more than 20 thousand yuan to buy the machine. The machine makes farm work more convenient."



According to the local government in Zibo, since 2000, farmers have received an allowance from the government every time they have bought corn combine harvesters. And this year, the government gave more than 5 million yuan, or about 670,000 US dollars, to local farmers.



While Shandong farmers are enjoying the assistance in purchasing farm equipment, those in the northwestern Ningxia Hui Autonomous Region are rushing to make use of wasted farmland in the villages. A farmer in the village of Ningxia named Yang Zhongxiang said that farming activity has risen because of the government's special agricultural policies.



"As the policies of agricultural tax breaks and assistance have been implemented, there is no reason for these so-called 'wastelands' to exist."



Since the Chinese reform of rural taxes in 2006, the burden on farmers has been reduced by 120 billion yuan, or about 16 billion US dollars, each year.



The vice agricultural minister said that the financial expenditure on agriculture, rural areas and farmers has increased each year. The total costs were nearly 400 billion yuan, or about 53 billion US dollars, this year alone, which is more than 15 percent higher than last year.



Meanwhile, construction of infrastructure and social security systems in rural areas is proceeding smoothly, providing for better Farm product ion conditions.



However, as experts say, China is now facing some new challenges in its agricultural development. Hu Biliang, an economic expert for the Chinese Academy of Social Sciences, said that rural economic development has to be further improved in some aspects.



"We haven't made enough material changes for the construction of modern agricultural systems. Farm product ion conditions also need improvement. And the rural social security system is not completed yet."



Hu also said that the government should further increase investment in agriculture and keep improving farming infrastructure. As Chinese urbanization speeds up, the government should balance new rural construction and urbanization. Besides, new policies directed toward solving the problems of farmland protection and farmland utilization are expected.