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

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Outline

• Basic data and facts on agricultural sector in
  China
• Achievements since reform era
• Major current concerns
• New orientation of agricultural policy in China

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Basic data and facts on agricultural sector in
China
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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

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Population distribution in China
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Grain Production in China
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Meat production in China
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Cotton Production in China
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Sugar crop production in China
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Structure of agriculture in Chinain of
production value
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Cropping structure in China
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Meat production structure in China
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Agriculture in national economy
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Achievements since reform era
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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

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Major current concerns
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Most important policy concerns

• Food (grain) security
• Growth of farmers income
• Widening urban-rural gaps in various areas

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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

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Declining grain cropping area
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Stagnated yields
kg/Mu
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Declined grain production
100million tons
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Wheat production
100million tons
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Paddy rice production in China
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Wheat trade in China million tons
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Rice trade in China million tons
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Soybean trade in Chinamillion tons
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Cotton trade in China million tons
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Edible oil import in China(Total, palm oil, soy
oil and rapeseed oil)
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Agricultural trade in China USD billion
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Income issues

• Widening urban-rural gap
• Large regional disparity
• Poverty and low income population

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Urban and rural income RMB per capita
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Urban-rural income gaprural1
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Regional Income Disparity
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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

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Arable land per head of agricultural population,
ha
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Arable land per head of agricultural population,
ha
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Development of agricultures share in China
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Agricultures share in GDP and population
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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

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New orientation of agricultural policy in China
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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

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New measures

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

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Governmental RevenueRMB billion
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Governmental expenditure on agriculture and rural
areas
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Agricultural support in comparison
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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.

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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

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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)

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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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Thank You