How to Improve Agricultural Subsidies Under the Concept of Green Agriculture
On November 1, the Central Leading Group for Comprehensively Deepening Reforms reviewed and approved the "Reform Plan for Establishing a Green and Ecology-Oriented Agricultural Subsidy System." The meeting pointed out that it is necessary to take the reform and improvement of existing subsidy policies as the starting point, begin with important areas and key links that constrain the sustainable development of agriculture, highlight the green and ecological orientation, accelerate the implementation of relevant agricultural subsidy policy reforms, and shift the policy objective from mainly focusing on quantity growth to placing equal emphasis on quantity, quality and ecology.
Since entering the new historical period of "industry supporting agriculture and cities supporting rural areas," China's agricultural modernization has developed steadily. Grain output increased for twelve consecutive years, and comprehensive production capacity has historically secured a major threshold of 1 trillion jin, achieving national food security and an effective supply of important agricultural products. However, the increase in the output of some agricultural products in China has, to a certain extent, been obtained at the cost of sacrificing resources and the environment and sacrificing sustainable development.
The destruction and deterioration of China's agricultural resources and environment have been caused jointly by multiple factors and multiple causes. They are mainly manifested in the following aspects: First, the in-depth development of industrialization and urbanization, while drawing resource factors away from agriculture, has also discharged a certain amount of pollution into the production environment of agricultural areas. Data from the Ministry of Environmental Protection show that currently 300 million mu of cultivated land in China is affected to varying degrees by heavy metal pollution such as cadmium and nickel, mainly from pollution by industrial and mining enterprises. Second, the temporal and spatial distribution of water resources is uneven, some areas are overdeveloped, and the agricultural water use model is unsustainable. The temporal distribution of China's water resources generally shows spring drought and summer flooding, and the spatial distribution is also uneven. Under conditions of scarce water resources, the national rate of efficient water-saving irrigation is not high. Third, the problem of non-point source pollution in the agricultural production process has worsened, risks to the quality and safety of agricultural products have increased, and agricultural production faces the critical point of unsustainability. At present, the utilization rates of chemical fertilizers and pesticides for major crops in China are relatively low, and a considerable amount of crop straw is burned in the open air, livestock and aquaculture waste is randomly discharged without treatment, the residual rate of agricultural film is high, and incidents affecting the quality and safety of agricultural products due to excessive residues of illegal pesticide and feed additives also occur from time to time.
Moderately adjusting the planting structure and scientifically conserving resources and the environment are policies generally implemented by countries around the world during periods of loose agricultural product supply. In the 1980s, the United States had consecutive years of bumper grain harvests, while the worldwide economic crisis led to reduced market demand, and agricultural support policies placed a heavy burden on the government. In 1985, the United States farm bill passed a large-scale set-aside plan, providing rent subsidies to landowners and encouraging them to set aside ecologically fragile land. At present, the set-aside area in the United States remains at more than 14 million hectares year-round. In recent years, Japan has had excess rice production, while imports of other grains have continued to increase. The Japanese government promptly carried out production adjustments, encouraged farmers to expand the sown area of soybeans, wheat, feed crops and non-staple grains, implemented subsidy policies for the protection of farmland and water environments, and supported agricultural production with a low environmental load. Since entering the new century, the European Union has placed agricultural multifunctionality in an important position in each of its successive reforms of the Common Agricultural Policy, issued a minimum standard indicator system for the agricultural ecological environment, and provided subsidies to entities engaged in agricultural production according to these standards.
It must be seen that although grain supply in domestic and international markets is currently ample, the situation of tight balance and structural shortage in China's supply and demand of agricultural products has not changed. Although wage income of farmers has already exceeded half of their income, agricultural operating income is still the foundation and "stabilizer" of farmers' income. Therefore, ensuring national food security and steady growth of farmers' income is the premise of a green and ecology-oriented agricultural subsidy system. While adhering to this premise, it should also be recognized that relying solely on government promotion to promote sustainable agricultural development is "unsustainable" in terms of both policy and funding. Therefore, subsidies should be used as a lever, the decisive role of the market in resource allocation should be fully brought into play, and farmers' vitality for innovation, entrepreneurship and creation should be stimulated. What also needs further strengthened understanding is that, constrained by the current quality of China's agricultural workers, relying on traditional small-scale farmers to promote green and ecological development is still unrealistic. Therefore, subsidies should be used as incentives to promote the coordinated development of new-type operating entities and traditional farmers, and to promote the development of resource-saving, environment-friendly and ecological conservation-oriented agriculture.
On the basis of strengthening understanding and updating concepts, establishing a green and ecology-oriented agricultural subsidy system requires, in accordance with the concept of green agriculture, focusing on improving the level of sustainable agricultural development. Through subsidies, regulate the planting of high-water-consumption crops and establish a reward and subsidy mechanism for agricultural water conservation. On the basis of strictly implementing laws and regulations on resource protection, explore more effective subsidy policies for returning farmland to forest, grassland and wetland. Adapt measures to local conditions and implement classified policies, carry out subsidies such as grain-soybean rotation, and conduct pilot projects for set-aside subsidies. With pilots first and gradual progress, explore effective mechanisms, carry out subsidies for fertilizer reduction and efficiency improvement, pesticide reduction and pest control, increased application of organic fertilizer, resource utilization of straw, and recycling and reuse of agricultural film, achieve zero growth in the application amount of chemical fertilizers and pesticides, and promote the resource utilization and harmless treatment of agricultural waste. While strengthening source control of pesticides, veterinary drugs and feed additives, comprehensively use means such as subsidies, rewards, fiscal interest discounts on credit, and insurance premium preferences to increase support for new-type operating entities and improve the standardization level of agricultural production.