Accelerating Agricultural Modernization: Reform and Innovation Provide the Driving Force

This Central Rural Work Conference is an important meeting held at a critical time when China's economy has entered a new normal and agricultural and rural development is moving toward a new stage. The conference emphasized the need to accelerate the transformation of the agricultural development model, consolidate the foundation for stable agricultural development, and, with reform and innovation as the driving force, accelerate the advancement of agricultural modernization. This is a major strategic deployment made by the central leadership based on the new normal of economic and social development and the new situation in the development of agriculture, rural areas, and farmers, and it is also a sacred mission and major task entrusted to us by both reality and history. It is of great and far-reaching significance for us as we continue to open up new prospects for the development of agriculture, rural areas, and farmers.

Accelerating agricultural modernization, viewed from outside agriculture and rural areas, is an objective requirement for national modernization, the synchronous development of the four modernizations, and stable economic growth. On the one hand, in overall modernization, agricultural modernization is a "slow variable" and a "key variable." This "variable" largely determines the course of modernization and affects the level of synchronous development of the four modernizations. Looking around the world, most developed countries are countries with a high level of agricultural modernization, while among those countries with backward agriculture and impoverished farmers, not one can truly be considered modernized. China's modernization cannot be an exception. It is impossible for us to build a modernized country while agriculture declines and rural areas wither. On the other hand, whether overall national economic growth can remain stable makes agriculture's role all the more crucial. When agriculture, rural areas, and farmers improve, the overall situation becomes favorable. At present, China's agricultural and rural development has achieved enormous and remarkable results. Grain output has achieved an "eleven consecutive increases," farmers' incomes have achieved "eleven consecutive years of rapid growth," and rural society is harmonious and stable, playing the role of a "ballast stone" and "anchor" for the overall economic and social development in maintaining stability while seeking progress. But if agriculture cannot be kept stable and problems arise in the supply of agricultural products, especially under current circumstances, it is very likely that we will face the unfavorable situation of lower growth and higher prices. The lessons in this regard internationally are very profound, and we must never repeat such mistakes.

Accelerating agricultural modernization, viewed from inside agriculture and rural areas, is an inherent requirement arising from agriculture's need to climb to a higher level and from the pressure of problems. On the one hand, China's level of agricultural modernization has steadily improved, the contribution rate of science and technology has exceeded 50%, improved varieties of major crops have basically achieved full coverage, the mechanization rate for cultivating, sowing, and harvesting crops has reached 60%, and the proportion of effectively irrigated farmland exceeds half. This fully demonstrates that agricultural modernization has already laid a good foundation and is advancing at an accelerating pace. But the more this is the case, the less we can afford to slacken or think of taking a breather. The more we must have the spirit to press ahead with full energy and seize the momentum. It is like carrying a load to the midpoint of a mountain: this is exactly the moment when effort is needed. With a bit more exertion, you get up; with a bit of relaxation, you stop; and if you stop for a while, you may even slide down. At this time, what is tested is endurance, and what is compared is willpower. Otherwise, we can only gaze at the peak and sigh, giving up halfway. On the other hand, the prices of major domestic agricultural products have already exceeded import prices, and further price increases have encountered a "ceiling." Many subsidy policies have also encountered a "ceiling" under WTO rules. At the same time, the "floor" of agricultural production costs continues to climb. Under multiple pressures, the comparative benefits of agriculture are continuously declining. What is even more serious is that agriculture is also burdened by two "tightening bands": ecological and environmental constraints and resource conditions. These problems force us to face them, to respond to them, and even more so to solve them. China's agricultural development has reached a stage where it will be difficult to sustain unless the development model is transformed, and has reached a time when agriculture has a future only if agricultural modernization is accelerated.

Accelerating agricultural modernization requires new thinking, new vision, and new methods. We must do everything possible to stabilize grain production. On the grain issue, there can be no slightest mishap. We must always remain clear-headed. First of all, we must calculate the security account well. On that premise, we must also calculate the economic account well. We must persist in coordinating progress in stabilizing grain and increasing incomes, advance strategic structural adjustment of agriculture, vigorously develop agricultural industrialization, promote the integrated interaction of the primary, secondary, and tertiary industries, improve the quality and efficiency of agricultural development, and ensure that farmers' grain bags and money bags are both full and substantial. We must actively develop various forms of appropriately scaled operations, encourage, guide, and regulate land transfer, adhere to adapting measures to local conditions, and allow exploration and experimentation in various forms. Promoting appropriately scaled agricultural operations cannot be understood simply as the expansion of land operation scale, and still less can it be simply equated with land annexation. We must adhere to giving priority to grain and agriculture, avoid "de-grainization," and resolutely prohibit "de-agriculturalization." We must promote the sustainable development of agriculture, resolutely press down the momentum of deterioration in resources and the environment, stop incurring new debts, and gradually repay old ones. We must certainly reduce excessive use of agricultural inputs, withdraw production that exceeds the carrying capacity of resources and the environment, turn agricultural waste into resources and wealth, improve soil with declining fertility, gradually restore and treat damaged ecological environments, and protect the foundation and lifeline of agricultural development. We must increase agricultural policy and funding support, adhere unswervingly to the top priority, and regardless of how tight fiscal resources are, ensure that agricultural investment only increases and does not decrease. We must further improve the mechanism for price formation and regulation of agricultural products and improve the financial system supporting agriculture. We must make good use of both domestic and international markets and both types of resources, and give full play to the radiating and driving role of new urbanization for agricultural modernization.

Accelerating agricultural modernization involves both the development of productive forces and changes in production relations. It is a grand and complex social systems project. We must persist in taking reform and innovation as the driving force, grasp the direction, highlight key points, actively explore, and advance step by step. We must adhere to dialectical thinking and systematic methods, and must not engage in either-or approaches, must not focus on only one side, and must resolutely prevent "campaign-style" behavior. We must persist in combining top-level design with crossing the river by feeling for the stones, being active and steady, proceeding prudently, and once we are sure, acting boldly; if not sure, looking again. We are not afraid of being slow, but afraid of standing still, and most afraid of repeated turmoil. We must never make subversive mistakes.

2015 is the concluding year of the "Twelfth Five-Year Plan" and an important year for formulating the "Thirteenth Five-Year Plan." It is also a key year in the critical period for building a moderately prosperous society in all respects. Doing a good job in agricultural and rural work is of great significance. We must, in accordance with the general requirements of "stabilizing grain and increasing incomes, improving quality and efficiency, and innovation-driven development," comprehensively deepen rural reform and strive to deliver a brilliant report card in accelerating agricultural modernization.