Agricultural development needs to shift from grain supply to the pursuit of economic returns

Advancing agricultural modernization and transforming the agricultural development model are the focus of China's “13th Five-Year Plan” for agriculture. How should agricultural development transform its model under the “13th Five-Year Plan”? In the view of Li Jieren, Party Secretary of the Rural Economy Research Center of the Ministry of Agriculture, the extensive production that used to pursue output above all, and the low efficiency brought by excessively dispersed smallholder production, both urgently require a transformation of the model.

“First of all, in terms of philosophy, it is an overall transformation of the model, from the large to the small. From the large perspective, that means shifting from traditional agriculture to modern agriculture, from excessive reliance on resource-intensive inputs and production factors to reliance on technological progress and resource conservation, and from purely ensuring the supply of agricultural products to pursuing economic returns, so as to raise overall production efficiency.” Li Jieren believes that, at the same time, the development and growth model of agriculture needs to be more market-oriented.

Agricultural development model: the time for urgent transformation has already come

NBD: What are the requirements for agricultural development under the “13th Five-Year Plan” planning and development? Is there already a corresponding clear plan?

Li Jieren: The recommendations for the “13th Five-Year Plan” adopted at the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China set clear requirements for vigorously advancing agricultural modernization. The key is to actively innovate and improve the institutional mechanisms for modern agricultural development, greatly raise the overall quality of the agricultural industry, adhere to green development, promote the protection and sustainable use of agricultural resources, coordinate the use of both domestic and international markets and resources, and establish reasonable policies and institutions that safeguard farmers' interests.

Among the five major development concepts put forward at the Fifth Plenary Session, specific development directions and target requirements were proposed for agriculture in each case. The “13th Five-Year Plan” is the concluding stage of “building a moderately prosperous society in all respects,” and one of the weak links, or shortcomings, is agriculture. Without agricultural modernization, and without the hundreds of millions of farmers escaping poverty and achieving prosperity, it cannot be said that moderate prosperity in all respects has been achieved.

NBD: There is now a lot of talk about transforming the model. Does that mean China's agriculture has already reached a point where transformation is urgently needed?

Li Jieren: Yes, that is certain. This is basically consistent with the overall macroeconomic background of our country, and it also matches the actual state of agriculture's own development. For example, the ecological environment has already flashed a “yellow light,” and food safety issues have become increasingly prominent. At the same time, international competition is intensifying day by day, many varieties have already formed serious price inversions, the “ceiling” on prices keeps being pressed down while the floor of costs keeps rising, and the “amber box” space for policy subsidies is also shrinking. How to safeguard farmers' incomes, safeguard farmers' enthusiasm for farming, raise agricultural production efficiency, and achieve agricultural modernization -- all these factors require that the agricultural growth model must be transformed.

Agricultural product subsidies: the first priority is to improve the price formation system

NBD: In recent years, the price problem of agricultural products has been quite prominent. For example, for soybeans, white sugar and others, the price gap between domestic and foreign prices is very large. How should the price problem of agricultural products be solved?

Li Jieren: First of all, the prices of agricultural products are very difficult to regulate entirely according to market demand and supply. Because China's farmers have little arable land per capita, it is hard to raise production efficiency, and costs are bound to increase. So if the prices of agricultural products were fully compared with and aligned to the prices of internationally advantaged producing countries, it would be very difficult to safeguard farmers' incomes and their enthusiasm for growing grain, and it would also be impossible to safeguard coordinated development between urban and rural areas.

Therefore, the state has introduced policies including the minimum purchase price system, the temporary purchase and storage system, and target price pilots, implementing price protection and subsidies for agricultural products. But as the agricultural situation at home and abroad changes, the original policies are gradually facing new problems.

The focus of the next step of reform is, according to the degree of importance of various major agricultural products to the national economy and people's livelihood, to gradually and progressively reform and improve the price formation mechanism for agricultural products by category, setting prices on the principles of staying close to the market and safeguarding farmers' reasonable returns. At the same time, the agricultural subsidy system must also be improved, maintaining the continuity and stability of agricultural subsidy policies.

NBD: In recent years, land transfers have been piloted in many places. What should be made of things like Chongqing's land tickets?

Li Jieren: On the issue of transferring land management rights, the key is to grasp two points. First, the agricultural nature of the land must not be changed; this is determined by our country's national conditions. Second, the scale must be moderate. Conditions differ from place to place, so the scale will also differ. As long as policies are appropriate, and there is no blind promotion or restriction, producers will find a way. From the actual situation in our country, among these, the scale of family farming will long hold a fundamental position.

Chongqing's land tickets should be a measure for managing land used for industry and commerce. It is not the same concept as the transfer of land management rights in expanding the scale of agricultural operations. Regarding reform of the rural land expropriation system, there are currently some effective methods in China, and each place can adapt to local conditions. But on the whole, it must be ensured that the “red line” for arable land area is not breached and that farmers' rights and interests are safeguarded.

Development of agricultural e-commerce: solve the two “last miles” well

NBD: The state is vigorously building rural basic network infrastructure. How will e-commerce change agriculture?

Li Jieren: In the era of “Internet Plus,” the entire socioeconomic development must have internet thinking, and agriculture will naturally be no exception. Moreover, the development of agricultural e-commerce is precisely conducive to solving a relatively major problem faced in traditional agriculture, namely how dispersed small farmers and small-scale production can connect with the large market.

NBD: Agricultural e-commerce is also very hot at present, and enterprises and farmers have strong willingness. How should it be advanced in the future?

Li Jieren: At present, the government is vigorously advancing the development of agricultural “Internet Plus” and has formulated relevant development policies and plans, among which strengthening the construction of rural informatization infrastructure and network platforms is made a priority, and top-level design and institutional arrangements are being strengthened.

In specific business development, it is necessary to rely on market-based means, on operators, and on enterprises to gradually explore various effective measures. The government sets up the stage, enterprises put on the performance, and a hundred flowers bloom.

Personally, I feel that agricultural e-commerce, especially fresh produce e-commerce, faces difficulties peculiar to it relative to some other products, such as first, dispersion, and second, high quality requirements, which are not easy to solve. Dispersion requires solving the two “last miles” well. One is the first mile: how to reach villages and households and face a large number of dispersed producers and operators. The other is the last mile to reach consumers' hands. Logistics costs and operating costs are both high. Quality requires building high-credibility brands and establishing unified and standardized production standards and testing standards. Although the difficulties are considerable, both the government and enterprises are actively exploring now, and I believe agricultural e-commerce will bring new vitality to the transformation of traditional agriculture into modern agriculture.