Three major aspects of next year's agriculture, rural areas and farmers reform: agricultural industrialization listed first

The Central Rural Work Conference was held in Beijing from the 22nd to the 23rd, reviewing the 2014 work on agriculture and rural areas, studying major measures to advance agricultural modernization through reform and innovation, and comprehensively deploying the work on agriculture and rural areas for next year and the period to come. From the content of the conference it can be seen that rural reform will be further deepened next year, among which three major aspects deserve attention: agricultural industrialization, agricultural science and technology, and reform of the rural land system.

Aspect one: Vigorously develop agricultural industrialization

“Vigorously developing agricultural industrialization” was listed as the first item of next year's work.

The conference proposed that, on the basis of stabilizing grain production, we should actively advance the adjustment of the agricultural structure, rely on support from science and technology, shift from being “production-oriented” to being “consumption-oriented”, move from looking for solutions solely on cultivated land to working with the entire national land and resources, build an advantageous regional layout and a specialized production pattern, and accelerate the integration of farming and animal husbandry. Modern industrial organization methods such as industrial chains and value chains should be introduced into agriculture to promote the integrated interaction of the primary, secondary and tertiary industries.

“The conference emphasizes agricultural industrialization and the integration of the primary, secondary and tertiary industries, which is precisely about helping farmers keep the profits in their own hands.” said Zheng Fengtian, a professor at the School of Agricultural Economics and Rural Development of Renmin University of China, in an interview with a Shanghai Securities News reporter. “Through cooperative organizations, farmers can engage in industrialized operations; after producing agricultural products, they can handle distribution, direct sales and so on themselves, reducing intermediate links and sharing in more returns.”

Wen Tiejun, a well-known expert on agriculture, rural areas and farmers, also told a Shanghai Securities News reporter, “The profit rate of the primary industry (agriculture) is far lower than that of the secondary industry. The manufacturing sector of the secondary industry faces the dilemma of overcapacity, and its profit rate is below the social average profit rate. The tertiary industry (services) can often obtain profits above the social average profit rate through innovation in themes. Therefore, only through the 'tertiarization of the primary industry' is it possible to achieve the sustainability of safe agriculture.”

Wen Tiejun believes that Japan and South Korea's comprehensive development of rural tertiary industries such as purchasing and marketing supermarkets, finance and insurance, leisure tourism, cultural creativity, wellness experiences and ecological landscapes has effectively helped farmers increase their incomes, and is worth China learning from.

At present, China's agricultural industrialization has already achieved certain results. As of the end of November, there were 877,000 family farms, 1.267 million farmer cooperatives and more than 120,000 leading enterprises nationwide.

Not long ago, the Ministry of Agriculture issued a document vigorously promoting leisure agriculture; next, leisure agriculture will become a key focus of policy support.

Aspect two: Agricultural science and technology are the key

Han Changfu, Minister of Agriculture, pointed out yesterday at the National Agricultural Work Conference held in conjunction: “Transforming the development model of agriculture means truly shifting from relying on resources and material inputs to relying on scientific and technological progress and improving the quality of the workforce.”

It can thus be seen that agricultural science and technology are the key to advancing agricultural modernization. Therefore, promoting the development and innovation of agricultural science and technology will be a focus of next year's work on “agriculture, rural areas and farmers”.

The Central Rural Work Conference emphasized “relying on support from science and technology”, while when the Ministry of Agriculture emphasized the priorities of next year's work at the National Agricultural Work Conference, agricultural science and technology also occupied a large portion. Among these, it proposed developing e-commerce for agricultural products and accelerating the pace of agricultural informatization; advancing reform of the agricultural science and technology system and accelerating the pace of innovation in agricultural science and technology; accelerating the development of the modern seed industry and enhancing the innovation capacity of the seed industry; and strengthening weak links in agricultural machinery operations and follow-up services to promote the sustained development of agricultural mechanization.

Data from the Ministry of Agriculture show that this year the contribution rate of agricultural scientific and technological progress reached 56%, and the comprehensive mechanization level of crop cultivation and harvesting exceeded 61%.

However, Zeng Yesong, inspector and researcher at the Party School of the Central Committee of the Communist Party of China, told Shanghai Securities News, “The contribution rate of China's agricultural science and technology is far below the advanced level of developed countries, and the potential for innovation in agricultural science and technology is enormous. The key is to work hard on innovation in biotechnology, information technology, machinery and other technologies, work hard on combining science and technology with finance to promote the transformation and dissemination of results, and work hard on technological integration and re-innovation.”

Aspect three: Rural land reform continues to advance

This year was a year in which breakthrough progress was made in reform of the rural land system. Important documents such as the Opinions on Guiding the Orderly Transfer of Rural Land Operation Rights and Developing Moderate-Scale Agricultural Operations were issued, and the direction of land system reform featuring the “separation of three rights” - ownership rights, contract rights and operation rights - was established.

Judging from the information revealed by the Central Rural Work Conference, reform of the rural land system will continue to be deepened next year.

The conference proposed guiding and regulating the orderly transfer of land operation rights, developing various new types of agricultural operation entities, adhering to giving priority to grain and agriculture, avoiding “de-grainization”, and resolutely prohibiting the “de-agriculturalization” of cultivated land.

“At present, land transfer in various places is too fast, and the phenomenon of building up large households is prominent, which is not conducive to advancing agricultural modernization. Therefore, the conference emphasized guiding the orderly transfer of land and moderate-scale operations.” said Zheng Fengtian.

Han Changfu reported to the National People's Congress yesterday that in 2015 China will actively and steadily advance reform of the rural land system, will cooperate with the Standing Committee of the National People's Congress to promptly revise the Land Contract Law, grant farmers the capacity to mortgage and provide guarantees with land operation rights, and allow farmers to use operation rights as shares to develop industrialized agricultural operations. The confirmation, registration and certification of rural land contractual operation rights will be basically completed in about 5 years.

Han Changfu said that in 2015, the pilot program for confirmation, registration and certification of China's land contractual operation rights will be further expanded, with 8 to 10 more provinces selected to carry out province-wide pilots, and each prefecture-level city in other provinces selecting 1 county to carry out county-wide pilots, with coverage reaching about 500 million mu.

It is also learned that the Pilot Plan for Actively Developing Farmer Shareholding Cooperatives and Granting Collective Asset Share Rights, reviewed by the Central Leading Group for Comprehensively Deepening Reform in September this year, and the Opinions on Pilot Work for Reform of Rural Land Expropriation, Entry of Collective Operational Construction Land into the Market, and the Homestead System, reviewed in December, are both expected to be published in the near future.