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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
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







Structure of agriculture in china in of production value
Structure of agriculture in Chinain % of production value






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



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




Declined grain production
Declined grain production

100million tons


Wheat production
Wheat production

100million tons



Wheat trade in china million tons
Wheat trade in China million tons


Rice trade in china million tons
Rice trade in China million 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)



Income issues
Income issues

  • Widening urban-rural gap

  • Large regional disparity

  • Poverty and low income population





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






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



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





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



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