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National Modern Agriculture Development Plan(2011—2015)VI

DATE:2013-04-21       SOURCE:

VI. Supporting Measures

It is an arduous task to carry out agricultural modernization while deepening industrialization and urbanization. Therefore, based on its actual conditions and agricultural development situation, China needs to highlight development priorities, increase investment, strengthen measures and conduct comprehensive activities. The long-term mechanism of industry nurturing agriculture and urban areas supporting rural areas would ensure remarkable progress of modern agriculture.

1. Establish a mechanism to ensure steady increase in agricultural investment

1.1 Continue to increase investment. The total amount of investment to boost agricultural production, rural development and farmers' wellbeing shall increase constantly, while its share in the state total investment increase steadily”. The annual overall investment in agriculture by the central and local governments at or above the county level should grow at a higher rate than their regular revenue. The budgeted fixed asset investments shall be tilted toward major agricultural and rural construction projects. The additional revenues raised from higher farmland use tax rate shall be fully spent on agriculture. Governments should earmark a specific amount of land transfer revenue for agricultural land development, and use the special fund in strict accordance with relevant provisions. Revenue collected from land transferred for new construction purpose shall be fully used for arable land development and land consolidation, which is a provision that must be strictly followed. It is encouraged to use land transfer income in high standard farmland development. The funds for modern agricultural production development and integrated agricultural development shall be further increased, and the guiding role of China’s Agriculture Development Fund shall be fully tapped.

1.2 Improve rural financial services. Innovative mechanisms, products and services shall be introduced to the rural financial sector, and the development of medium and small scale rural financial institutions including banks at villages and towns  shall be promoted. Efforts will be made to further optimize the policy that “new deposits taken by banking and financial institutions in a county shall be largely used for granting loans locally”. Preferential tax for agriculture-related loans, recipient-specific subsidies to rural financial institutions, increment incentives to county-level financial institutions and other relevant policies shall be implemented and improved. Financial institutions shall be encouraged to issue medium and long-term agriculture loans and attach more importance to performance evaluation. The state will revise the administrative measures on specialized farmers’ cooperatives to support farmers in arranging credit cooperation, and implement tax preferences for cooperatives and rural finance service. We will support the development of agricultural credit guarantee institutions, and expand the range of rural collaterals. Efforts will also be made to speed up the development of agricultural insurance service, improve the agricultural insurance premium subsidy policy, reinforce the agricultural reinsurance system and establish the budget-supported catastrophic risk diversification mechanism.

1.3 Guide social resources into agriculture. All departments shall voluntarily serve the “agriculture, countryside and farmers”, giving preferential consideration to agriculture and countryside in planning, project arrangement and fund increase. We need to ensure a fair exchange of resource elements between urban and rural areas , and encourage the transfer of industrial and urban resource elements towards agriculture and rural areas. Fiscal award and subsidy for participatory approach to village-level public undertakings on case-by-case basis shall be increased in order to motivate farmers to participate in agricultural and rural infrastructure development. Governments should carry out public mobilization and deliver policy incentives for all social forces to establish “pair assistance” relationships with rural areas, participate in the rural industry development and public infrastructure construction, and bring about a new pattern of diversified sources of investment.

2. Strengthen support and protection for agriculture

2.1 Persist with and improve agricultural subsidy policy. The role of the policy in motivating farmers and stabilizing agricultural production shall be enhanced. The ex post review mechanism shall be established for agricultural subsidy policies, and the ways to give subsidies shall be improved to achieve higher efficiency. Grain farmers will continue to receive direct subsidies. The mechanism of dynamic adjustment of integrated subsidies for agricultural inputs shall be put into practice. Study to gradually expand the coverage of subsidies for improved crop varieties and livestock breeds, increase subsidies for reproduction of foundation seed of potato and improved peanut varieties, and increase subsidies for improved animal breeds including pig, dairy cattle, beef cattle, yak, sheep, goat, etc. subsidies will be expanded for purchasing agricultural machinery and tools, and increased for the weak link of agricultural mechanization. The subsidies for compulsory vaccination against major animal diseases shall be enhanced, and specific zoonosis like brucellosis, rabies and echinococcosis, etc. are considered to be included into the subsidized vaccination program. Supporting policy for application and services of key agricultural production technologies shall be improved step by step. Subsidies will be significantly increased for critical technologies and good practices for disaster prevention and mitigation and production stabilization and increase. The fishing vessel diesel subsidy policy shall be continued and improved. The duty-free policy for imported seed, seedling, breeding stock and breeding poultry for agriculture purposes shall be continued.

2.2 Adopt and improve the reward and subsidy scheme for agricultural production. The compensation mechanism for major production regions will be improved. The transfer payment from central budget to top grain and oil producing counties will be increased. Reward to top grain-producing counties and major pig-farming counties will be enhanced. Local match-funding for agriculture-related projects in major grain producing counties will be regulated, and the local match-founding for grain risk fund in major producing regions will be completely rescinded. The per capita fiscal support at the county level in top grain-producing regions will be increased steadily. The subsidy and incentive policy for grassland ecological protection shall be fully implemented and improved. The competent authority will expand the coverage and scale of reward and compensation for grassland ecological protection and non-point pollution control, and explore subsidizing policy for using bio-pesticides and low-toxic pesticides. Study will be conducted on the establishment of obsolete energy-consuming agricultural machinery scrapping system, exploring subsidizing machinery scrapping and upgrading.

Intensify support to agricultural research and technology extension A number of initiatives shall be taken to improve modern agriculture technology system, with the continued implementation of key research projects in agriculture such as breeding of new GMO cultivars and species, and special projects of public-good nature. Seed Industry Development Fund will be established. The implementation of National key basic research plan, national hi-tech R&D plan and national S&T support plan in the field of Agriculture will be enhanced. Steady support will be provided to selected agricultural research institutes. The budget of local governments should cover expenses on daily operation of public service agencies engaging in agri-tech extension, plant and animal disease control and quality supervision over farm-products at the township or regional level. Operating funds will be allocated to these agencies, based on cropping and animal-farming scale and service performance, to ensure the salary income of the working staff in above-mentioned agencies is at the same level of the average salary of staff at grass-root public institutions. The Demonstration Project on Reform and Development of Grass-root Agri-tech Extension System and the project of infrastructure building for Agri-tech Extension Agencies shall be rolled out in all agricultural counties (cities, districts and state farms) in general. The Project of setting ad hoc posts at grass-root agri-tech extension agencies shall be initiated. The central government will increase funding in animal diseases control, and improve the subsidy system for bio-safety disposal of animals died of diseases. Subsidy to unified and expertise-based pest control shall be established and perfected. The Program of Higher Yield for Grain, Cotton, Oil-bearing Crops and Sugar Crops, the Program of Standard-based Horticulture and Animal-farming as well as the Demonstration Program on Standardized Agricultural Production will be further expanded. Farmers shall be provided with free technical services on formulated fertilization based on soil testing results . The coverage and scale of the Project of Improving Organic Matter Content in Soil shall be expanded. Rural human resource development will be further intensified, and policy support will be provided to college graduates for starting agribusinesses.

2.4  Improve regulatory mechanism for agricultural market. The central government will gradually raise the floor prices for rice and wheat, and improve the temporary state purchase and storage policies for key farm products such as corn, soybean, rapeseed and cotton. Regulatory mechanism for major farm products shall be improved, and so for the reserve system for key farm products. Meanwhile, backbone enterprises shall play their role in ensuring market stability. Market monitoring and early-warning system for non-staple food, hogs and vegetables in particular, shall be strengthened. Contingency plan to regulate the circulation of hogs, cotton, sugar and border-selling tea shall be improved, while regulatory measures on fresh and live farm products shall be formulated. Counter-cyclical subsidies might be introduced to meet the target prices .

3. Open agriculture wider to the outside world

Promote international cooperation in agriculture. More actions shall be taken to upgrade the quality and the level of “bringing-in” strategy in agriculture. To this end, bilateral, multi-lateral and regional cooperation mechanisms will contribute to closer agricultural S&T exchange and cooperation, the bringing-in of more investment and talents, and a higher efficiency in foreign fund utilization. In addition, it is essential to make best of foreign concessional loan and grant, and expand the capacity of introducing, adapting and assimilating the state-of-art technologies and equipment from foreign countries. Furthermore, inter-governmental cooperation and communication platform would be an additional channel for agricultural “going global”.

Enhance international agricultural trade. Agricultural consultations, negotiations and trade promotion shall be boosted at bilateral, multi-lateral and regional levels while rule-making for agriculture-related international trade shall be carried out in an earnest manner. The public service capacity for trade promotion shall be strengthened to promote the export of competitive farm-products. In compliance with the WTO rules, market access regimes shall be established for foreign businesses engaged in agricultural products and agricultural inputs. Proper measures will be taken to deal with international trade conflict, and industry associations are encouraged to safeguard the legitimate rights and interests of their member enterprises. Agricultural industry damage monitoring and warning mechanism shall be improved. Measures shall be applied in compliance with the WTO rules to regulate import and export of farm products in a flexible and effective manner.

1.    Deepen agricultural and rural reform


Promote reform in seed industry and state farms. The state will intensify guidance and support to national demonstration bases on modern agriculture and pilot areas of rural reform in the new context. A coordinated industrial development in rural and urban areas will be promoted to develop rural service industry and township enterprises. Preferential tax policy will be put in place to spur the development of rural secondary and tertiary industries. Infrastructure building and public services shall be coordinated between urban and rural areas for a unified national public service system. Urban and rural employment will be considered in a coordinated manner, aiming at equal employment opportunity and public service system for employment covering both rural and urban areas. The transfer of rural surplus labor force to urban areas or within local areas will be guided in a stable and orderly manner. Coordinated urban-rural social management will be put into practice, and the reform in hukou system (household registration system) shall be pushed forward actively and properly. Financial system reform will be advanced to put counties and cities directly under the provincial governments, and major agricultural counties shall be the pilots in the reform process.

2.    Bolster legal guarantee in agriculture


Further improve agriculture-related laws and regulations based on the Law of the People's Republic of China on Agriculture. Study will be conducted to draft new legislation in the field of agricultural investment, among others. The reform in agriculture administration and law enforcement system shall be sped up while comprehensive law enforcement in agriculture shall be advanced. Awareness-raising and publicity efforts will be made regarding agriculture-related laws and regulations in an in-depth manner.

3.    Strengthen leadership


Provincial governors and mayors will still hold the direct responsibility for ensuring the supply of grain and vegetable-basket products. Performance evaluation system, embracing the scientific outlook on development and sound understanding of political achievements, shall be improved, incorporating food production, farmers’ income growth and arable land conservation into the performance evaluation of leaders at county or city levels. An off-office audit of outgoing executives shall be carried out on arable land conservation and capital farmland protection. Centering on planed targets and objectives, all competent departments and local governments shall take clearly-defined responsibilities, strengthen coordination, improve working mechanisms, and carry out pro-agriculture and pro-farmers policies. Overall coordination shall be intensified during the implementation of major projects to ensure concrete actions in practice and to create a new perspective of modern agriculture development in China.
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