Summary of the Effectiveness of China's Agricultural Supply-side Structural Reform

Xinhua News Agency reporter Dong Jun

This year is the year of deepening the structural reform of agricultural supply side in China. With the deepening of the reform, a concerto with "green", "reform" and "innovation" as the main melody sounded in the field.

Green development momentum, more efficient use of resources

The annual "three summers" cross-regional machine harvest conference battle came to an end. The "one-stop" operation from harvesting wheat, processing straw to no-tillage sowing of corn has been widely implemented in major wheat-producing provinces this year. All localities adhere to the ecological orientation and promote the green and efficient production mode of wheat harvesting and straw treatment, precision sowing of corn and layered fertilization. Anhui, Shandong, Hebei and other provinces of straw from the field mechanization rate of more than 85%.

Obtaining greater gains with fewer resources is the meaning of the structural reform of the agricultural supply side. In order to alleviate the problems caused by high-intensity arable land use over the years, this year my country expanded the area of arable land rotation and fallow to 12 million mu.

Hebei, a major grain-producing province, has vigorously promoted organic fertilizers to replace chemical fertilizers in the past two years, and implemented in-depth actions to reduce the amount of chemical fertilizers and pesticides. Last year, the province's use of chemical fertilizers (pure) decreased by 1.1 compared with 2015, and the use of pesticides decreased by 2.2. Achieved negative growth in the use of chemical fertilizers and pesticides.

This year, the central government has arranged special funds to support 100 counties to carry out pilot projects of replacing organic fertilizer with fruit, vegetable and tea. All localities have implemented a green ecology-oriented agricultural subsidy system, and coordinated policies such as biogas projects, pilot projects for the utilization of livestock and poultry manure resources, comprehensive utilization of straw, and comprehensive agricultural development of regional ecological recycling agriculture, forming a policy collection effect.

The aquaculture industry also sings the Concerto for Green Development. Not long ago, the General Office of the State Council issued the "Opinions on Accelerating the Resource Utilization of Livestock and Poultry Breeding Wastes", proposing that the comprehensive utilization rate of livestock and poultry manure will reach more than 75% by 2020. This year, the central government has specially allocated funds to support 100 major animal husbandry counties and the whole county to promote the resource utilization of livestock and poultry manure. Industry insiders analyze that the construction of modern animal husbandry will usher in a new round of development opportunities.

Industry chain upgrading competitiveness continued to enhance

On the one hand, grain production has increased for many years, on the other hand, grain imports have continued to grow, exposing problems such as insufficient effective supply in the production of grain and other major agricultural products in my country and mismatch with actual demand. Enhancing agricultural competitiveness, building a longer industrial chain, and a larger value chain have become another mission of agricultural supply-side structural reform, and the agricultural product processing industry has become an important force to complete this mission.

In December 2016, the State Council issued the "Opinions on Further Promoting the Development of the Agricultural Product processing Industry", which made systematic arrangements for the development of the agricultural product processing industry at present and in the future. Han Changfu, Minister of agriculture, said that the main contradiction in China's agriculture has changed from insufficient total amount to structural contradiction. The development of agricultural products processing industry will help guide farmers to produce marketable products and optimize product structure according to market demand.

As another important starting point for the structural reform of the agricultural supply side, various localities have continuously increased the intensity of rural entrepreneurship and innovation, and the integration of rural primary, secondary and tertiary industries has accelerated. The Ministry of Agriculture has announced a catalog of 1096 national rural entrepreneurship and innovation parks (bases) that are compliant with laws and regulations, complete functions, strong radiation driving capabilities, and obvious industrial integration development trends. Twelve provinces have formulated implementation opinions to support entrepreneurship and innovation of people returning to the countryside and promote the integrated development of rural primary, secondary and tertiary industries.

The development of industrial integration has effectively promoted rural entrepreneurship and innovation. At present, more than 700 million people have returned to the countryside to start businesses. At the same time, various forms of moderate-scale operations have developed steadily. The total number of new-type professional farmers exceeds 14 million, there are more than 877000 family farms, and there are 1.888 million professional farmer cooperatives. Various forms of moderate-scale operations account for more than 30%.

Continuous Optimization of Agricultural Structure, Steady Progress of Comprehensive Reform

As a major measure to promote the structural reform of the agricultural supply side, last year, China adjusted the temporary corn collection and storage policy to a new mechanism of market-oriented acquisition and subsidy in the three northeastern provinces and Inner Mongolia. After a year of hard work, corn prices began to return to the market, which promoted the adjustment and optimization of agricultural planting structure.

In that year, the national grain corn planting area decreased by 30 million mu, the first decrease in 13 years, exceeding the target of 10 million mu set at the beginning of the year. At the same time, the soybean area increased by 10.44 million mu and the yield increased by 2.3 billion kg. The area of coarse cereals increased by more than 700 million mu and the output increased by more than 4 billion kg. The potato area increased by more than 160 million mu and the yield increased by 1 billion kg.

Since the beginning of this year, in non-dominant corn producing areas such as "sickle bend", the area of grain corn has been reduced by more than 1000 million mu, while the area of crops such as soybeans, miscellaneous grains and beans, potatoes and high-quality forage grass with market gaps has increased.

Han Jun, director of the Office of the Central Rural Work Leading Group, said that in the future, it is necessary to improve the minimum purchase price policy for rice and wheat in accordance with the idea of "implementing policies by variety and gradual advancement", form a reasonable price comparison relationship, and minimize excessive intervention in the market supply and demand relationship.