China has brought out a new ruling that will funnel more money into the development of farmland. This new financial input will come from the money the government takes from the sale of land-use rights between private groups or farmers.
Published by the Ministries of Finance and of Land and Resources, the rule stipulates that no less than 15 percent of the average net profit from the transfer of land-use rights be ploughed back into rural development. In the past three years, the authorities have received more than 900 billion yuan, or around US$110 billion, from land-use transfers. In some areas, this payment, which is similar to a tax, accounts for nearly half of local revenue. The State Council is urging local governments to use the money to improve agricultural production and develop unused land, as well as other measures to improve farmland.
(CCTV August 12, 2004)
