The latest 2016 agricultural subsidy policy is here. What should you do if you do not understand the policy?

Officials from the Ministry of Finance and the Ministry of Agriculture revealed that in 2016, the reform of the agricultural "three subsidies" will be rolled out nationwide on the basis of summarizing pilot experience and further improving policy measures.

1. Adjust 20% of the comprehensive agricultural input subsidy funds nationwide to support moderately scaled grain farming

In light of the decline in agricultural input prices, each province, autonomous region, municipality directly under the Central Government, and city under separate state planning shall adjust 20% of the comprehensive agricultural input subsidy funds allocated and issued by the central finance, plus the pilot subsidy funds for large grain-growing households and the incremental funds of the agricultural "three subsidies", to be coordinated for use in supporting moderately scaled grain farming.

The support targets are moderate-scale production and operation entities of major grain crops, with priority given to new types of operating entities such as large grain-growing households, family farms, farmers' cooperatives, and agricultural socialized service organizations.

2. Some regions were already selected for pilots in 2015

In 2015, the Ministry of Finance and the Ministry of Agriculture selected 5 provinces, including Anhui, Shandong, Hunan, Sichuan and Zhejiang, and the provinces selected some counties and cities to carry out pilot reforms of the agricultural "three subsidies".

The main content of the pilot is to merge the agricultural "three subsidies" into the "agricultural support and protection subsidy", with policy objectives adjusted to support the protection of cultivated land fertility and moderately scaled grain farming.

The official also stated that 80% of the existing comprehensive agricultural input subsidy funds, plus direct subsidies to grain farmers and crop improved variety subsidy funds, will be used for the protection of cultivated land fertility.

3. Persist in protecting resources and subsidizing actual growers

At the same time, farmers should be motivated to strengthen awareness of protecting agricultural ecological resources, take the initiative to protect land fertility, and be encouraged to return straw to the field rather than burn it in the open. This part of the subsidy funds will still be provided as direct cash subsidies to households.

20% of the existing comprehensive agricultural input subsidy funds, plus the pilot subsidy funds for large grain-growing households and the incremental funds of the agricultural "three subsidies", will be concentrated on supporting moderately scaled grain farming in accordance with the requirements for unified adjustment and improvement of policies.