China Agricultural Information Network – 2016 Government Work Report: Six Key Takeaways Related to Agriculture

At the opening session of the Fourth Meeting of the 12th National People’s Congress on March 5, 2016, Premier Li Keqiang stated in his Government Work Report: We will accelerate the development of modern agriculture and ensure sustained increases in farmers’ incomes. We will continue to give top priority to “agriculture, rural areas, and farmers” work, improve policies that strengthen agriculture, benefit farmers, and enrich rural communities, deepen rural reforms, expand channels for farmers to find employment and increase their incomes, and focus on enhancing the quality, efficiency, and competitiveness of agriculture. Among these measures, there are six concrete, substantive points related to agriculture.

1. Promote new‑type urbanization and agricultural modernization, and foster coordinated development between urban and rural areas as well as among regions. Narrowing the gaps between urban and rural areas and among regions is both a key priority in restructuring the economy and a crucial step in unlocking development potential. We will deepen the implementation of people‑centered new‑type urbanization, enabling approximately 100 million rural migrants and other permanent residents to obtain urban household registration; complete the renovation of dilapidated housing areas and urban villages inhabited by roughly 100 million people; and guide about 100 million people to achieve urbanization closer to their places of residence in the central and western regions.

2. By 2020, the urbanization rate of the resident population will reach 60%, and the urbanization rate of the registered household population will reach 45%. A number of projects in water conservancy, agricultural machinery, and modern seed industries will be implemented to promote moderately scaled agricultural operations, regionally optimized spatial planning, standardized production, and socialized services.

3. The supply and quality safety of grain and other major agricultural products have been better ensured, and the level of agricultural modernization has improved markedly. Based on the overall regional development strategy and guided by the “Three Major Strategies,” a network of vertical and horizontal economic corridors—primarily along coastal and riverine regions—has been established, fostering a number of urban agglomerations and growth poles with strong spillover effects. Major infrastructure projects have been strengthened: high-speed rail operating mileage has reached 30,000 kilometers, covering more than 80% of large cities; approximately 30,000 kilometers of newly built or upgraded expressways have been opened to traffic; and broadband networks now provide full coverage across both urban and rural areas.

4. Accelerate the adjustment of the agricultural structure. Consecutive increases in grain production have provided strong support for price stability and improved living standards, yet they also face challenges such as a sharp rise in inventories and falling market prices. We must guide farmers to adjust their cropping and livestock‑raising patterns in line with market demand and appropriately reduce the area planted with corn. In accordance with the principle of “market‑based pricing and decoupling subsidies from prices,” we will proactively yet prudently advance reforms of the corn procurement and storage system to ensure farmers’ reasonable incomes. We will adopt a multi‑pronged approach to work down grain inventories, vigorously support the deep processing of agricultural products to extend the agricultural value chain, and formulate a new round of plans to return farmland to forests and grasslands—this year, 15 million mu of farmland will be converted back to forests and grasslands. This initiative delivers multiple benefits, and it must be implemented effectively.

5. Actively promote diversified, appropriately scaled agricultural operations. Improve support policies for new types of agricultural entities, such as family farms, large-scale specialized farmers, and farmer cooperatives; encourage households to transfer contracted land on a voluntary, compensated basis in accordance with the law; and develop land‑shareholding cooperatives, joint ventures, or land‑trust management models. Deepen reforms related to rural collective property rights, state‑owned agricultural reclamation, collective forest‑rights systems, state‑owned forest farms, farmland water conservancy, and supply and marketing cooperatives.

6. Strengthen the foundational support for agriculture. Complete the demarcation of permanent basic farmland and implement special protection measures; intensify the development of high-standard farmland, deepen soil loosening on 150 million mu of land, and add 20 million mu of highly efficient water-saving irrigation areas. Launch pilot programs to explore crop rotation and fallow systems. Enhance agricultural scientific and technological innovation and dissemination, vigorously promote green, high-yield, and efficient grain production, and implement initiatives to achieve zero growth in the use of chemical fertilizers and pesticides. Ensure adequate fiscal investment in agriculture, establish a nationwide agricultural credit guarantee system, improve the agricultural insurance framework, and guide and leverage additional capital to support the development of modern agriculture.