On December 24-25, 2003, central authorities of China convened a conference on rural work in Beijing. The mission was to review the agricultural and rural situation, and study policies and measures for increasing farmers’ incomes, and ensuring the grain safety of the nation as well as deepening rural reforms.

 

As an annual event, the conference always concludes with issuing a policy document as a guideline for rural work. The document from the recent conference has something special: the meeting studied a series of issues related to the income of farmers, grain safety and rural reforms. The document of the meeting highlights the only theme of how to boost income growth of farmers. The document is entitled “The Suggestions of the Central Committee of the Communist Party of China and the State Council on Policies for Boosting Growth in Farmers’ Income”, also called the No. 1 Document of the central authorities in 2004.

 

The document includes policies and measures in nine parts and 22 fields centering on raising farmers’ income. The nine parts of the document can generally be divided into the following four aspects:

 

First, respectively stressing focal and difficult points of raising farmers’ income in grain-producing and poverty-stricken areas.

 

Currently, the main difficulty in raising farmers’ income is in major grain-producing areas. Stabilizing and resuming grain production also depends on major grain-producing areas. The document particularly stresses the problem of helping raise farmer’s income in major grain-producing areas, and puts forward some powerful policies and measures. Helping major grain-producing areas means to improve grain-producing capability and grain processing added value. For this, the document clearly proposes that start in 2004, the government implements measures including high-quality grain industry project and subsidizing farmers who buy or renew large agricultural machinery and tools.

 

On the other hand, it brings forward measures to boost farmers’ employment and income, respectively on the aspects of agriculture and no-farming sector.

 

The document underlines the structural adjustment of agriculture when keeping overall grain production. It provides the following three measures: firstly, to promote the construction of distinctive farm produce bases. Government will increase subsidies to improved variety, split the commercial examination from the prescribed examination, and quicken the pace of building agriculture bases. Secondly, to boost agricultural industrialization. Government will support these leading agricultural enterprises through special funds, government subsidy and discount. Thirdly, to strengthen agricultural technology. Agricultural enterprises will be allowed to apply for state R&D funds and other funds.

 

To increase farmer’s income, more effort is needed in rural areas. Income growth is also connected with the development of local industry and service sectors as well as the county economy. Therefore, the document stresses such issues as the reform and restructuring of rural enterprises, the development of individual and private economies in the countryside, and the construction of small towns.

 

In recent years, migrating for jobs has become the main means for peasants to increase their income. Of increased revenues for farmers during the 2000-2003 period, roughly 47.8 percent come from their jobs outside their hometowns. At present, the total number of peasant laborers migrating trans-regionally comes to approximately 100 million.

 

In addition to safeguarding peasant laborers’ legitimate rights and interests and strengthening vocational skill training, the document proposes to ensure the implementation of relevant policies and beef up residence registration reform in large and medium-sized cities. Meanwhile, financial departments at all levels should appropriate funds earmarked for vocational skill training to peasant laborers.

 

Third, in order to create favorable conditions for farmers’ income increase, a series of measures have been raised in the document, including opening up farm produce market, increasing investment in agriculture and rural areas, and furthering rural reform.

 

To continue expanding agricultural product markets is a priority in increasing farmers’ income. The document points out that a nation-wide “green passage” for the market circulation of fresh and live agricultural products should be established; the foreign trade development funds should tilt in favor of promoting agricultural products exports, and agricultural products’ export processing enterprises should be guided into the agricultural products’ export processing trade zones.

 

In 2004, the issue of national debts will continue to slow down, but agricultural input and investment in the countryside will not decrease, on the contrary, shall be increased as much as possible. In this respect, the document puts forward a string of measures, including allocating budgetary agricultural expenditures according to the law, readjusting agricultural investments and continuously increasing the ratio of fixed asset investment in agriculture and the countryside, and further increasing investment in the “Six Programs” in the countryside, which refers to water-saving irrigation, human and livestock drinking water, rural roads, marsh gas application, water and electricity construction, and fenced pasture.

 

Fourth, the document urges leadership at various levels to develop a scientific sense of development and earnestly implement various policies to achieve the goals of increasing farmers’ income, ensuring grain safety and deepening rural reforms.

 

(China.org.cn February 10, 2004)