Agricultural and policy development in china
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Agricultural and Policy Development in China. Dr. Ke Bingsheng Director-General Research Center for Rural Economy, Ministry of Agriculture. Outline. Basic data and facts on agricultural sector in China Achievements since reform era Major current concerns

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Agricultural and policy development in china

Agricultural and Policy Development in China

Dr. Ke Bingsheng

Director-General

Research Center for Rural Economy, Ministry of Agriculture


Outline

Outline

  • Basic data and facts on agricultural sector in China

  • Achievements since reform era

  • Major current concerns

  • New orientation of agricultural policy in China


Basic data and facts on agricultural sector in china

Basic data and facts on agricultural sector in China


Basic data

Basic data

  • Agricultural population: 750-950 million, depending on definition (about 200 migrants)

  • Agricultural households: 250 million

  • Average farm size: 0.5 ha

  • Most of the agricultural activities take place in eastern half of the country


Population distribution in china

Population distribution in China


Grain production in china

Grain Production in China


Meat production in china

Meat production in China


Cotton production in china

Cotton Production in China


Sugar crop production in china

Sugar crop production in China


Structure of agriculture in china in of production value

Structure of agriculture in Chinain % of production value


Cropping structure in china

Cropping structure in China


Meat production structure in china

Meat production structure in China


Agriculture in national economy

Agriculture in national economy


Achievements since reform era

Achievements since reform era


Development 1978 2005

Development 1978-2005

  • Grain production growth: 1.4% on average per year

  • Meat production: 8.56-77.43 million tons, increased by 8 times

  • Fishery production: 4.65-51.06 million tons, increased by 10 times

  • Farmers’ income: 134-3255 RBM, 7% annually in real term

    • Color TV sets: 84%

    • Mobile phone: 50%

  • Farmers’ rights: free decision in agricultural production, marketing and non-farm and non-rural job seeking


Major current concerns

Major current concerns


Most important policy concerns

Most important policy concerns

  • Food (grain) security

  • Growth of farmers income

  • Widening urban-rural gaps in various areas


Food security

Food security

  • Net importer: additional 13% cropping areas would be needed if import of soybean, cereals and cotton should be produced domestically in 2005

  • Continued demand due to population growth, income improvement and growth of other sectors: about 5 million tons per year

  • Stagnated production due to resource constraints

    • Reduction of arable land due to urbanization

    • Degradation of land quality

    • Shortage of irrigation water


Declining grain cropping area

Declining grain cropping area


Stagnated yields

Stagnated yields

kg/Mu


Declined grain production

Declined grain production

100million tons


Wheat production

Wheat production

100million tons


Paddy rice production in china

Paddy rice production in China


Wheat trade in china million tons

Wheat trade in China million tons


Rice trade in china million tons

Rice trade in China million tons


Soybean trade in china million tons

Soybean trade in Chinamillion tons


Cotton trade in china million tons

Cotton trade in China million tons


Edible oil import in china total palm oil soy oil and rapeseed oil

Edible oil import in China(Total, palm oil, soy oil and rapeseed oil)


Agricultural trade in china usd billion

Agricultural trade in China USD billion


Income issues

Income issues

  • Widening urban-rural gap

  • Large regional disparity

  • Poverty and low income population


Urban and rural income rmb per capita

Urban and rural income RMB per capita


Urban rural income gap rural 1

Urban-rural income gaprural=1


Regional income disparity

Regional Income Disparity


Low income population

Low income population

  • Poverty population:

    • per capita income bellow 683 RBM: 23.65 million

  • Low income population:

    • per capita income bellow 944 RBM: 64.32 million


Arable land per head of agricultural population ha

Arable land per head of agricultural population, ha


Arable land per head of agricultural population ha1

Arable land per head of agricultural population, ha


Development of agriculture s share in china

Development of agriculture’s share in China


Agriculture s share in gdp and population

Agriculture’s share in GDP and population


Widening urban rural gaps

Widening urban-rural gaps

  • Widening urban-rural gaps caused by rapid industrialization and urbanization

  • Low improvement in rural education:

    • Rural economically active population: 7.5% illiterate and semi-illiterate( less than 6 year education) , 29.2% with 6 year education,50.2% with 9 year education, 13.1% with 12 + year education.

  • Low standards of rural medical service


New orientation of agricultural policy in china

New orientation of agricultural policy in China


Building a new socialist countryside

Building “a new socialist countryside”

  • Goals:

    • Increase production capacity (national food security, raw material needs)

    • Improve farmers living standards

    • Strengthen rural infrastructure (road, drinking water, electricity, biogas, cable TV, living environment…)

    • Enhance rural education, healthcare and cultural life

    • Advance democratic governance in rural areas


New measures

New measures

  • Deepening comprehensive reforms

  • Shift the focus of governmental expenditure to rural areas: a higher share, especially in the budget of central government


Governmental revenue rmb billion

Governmental RevenueRMB billion


Governmental expenditure on agriculture and rural areas

Governmental expenditure on agriculture and rural areas


Agricultural support in comparison

Agricultural support in comparison


To improve agricultural productivity

To improve agricultural productivity

  • Stricter control on taking farmland for non-farm purposes

  • Increased public funding on improving irrigation systems and other infrastructure

  • Increased public funding on agricultural technical extension

  • Increased funding for agricultural research:

    • Agricultural research to be granted high priority in the public investment;

    • The share of agricultural research on the total national research budget to be increased; the total research budge itself will increase significantly.


To increase farmers income

To increase farmers’ income

  • Increasing agricultural income:

    • Reducing cost

    • Increase production

    • Stabilizing prices

    • Restructuring

  • promoting off-farm employment in and out of rural areas

    • Better policy framework for rural workers in cities

  • Direct subsidy


To improve rural infrastructure

To improve rural infrastructure

  • Public investment in rural road, drinking water etc.

  • Village renovation:

    • To and in village road

    • Draining system

    • New toilets

    • Garbage collection and disposal

    • New housing (design and blueprints)


To enhance rural education health care and social security

To enhance rural education, health care and social security

  • More support to implementing 9 year basic education:

    • Tuition free

    • Free textbook and subsidy to boarding fees

    • Improving teaching facilities and teachers salary

  • More support to rural health care:

    • New medical insurance system for serious illness

    • More investment in rural hospitals

  • Social security:

    • More money for poverty reduction

    • Pilot projects for rural pension


Agricultural and policy development in china

Thank You


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