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Agricultural and Policy
Development in China
Dr. Ke Bingsheng
Director-General
Research Center for Rural Economy,
Ministry of Agriculture
Outline
Basic data and facts on agricultural
sector in China
Achievements since reform era
Major current concerns
New orientation of agricultural policy in
China
Basic data and facts on
agricultural sector in China
Basic data
Agricultural population: 750-950 million,
depending on definition (about 200
migrants)
Agricultural households: 250 million
Average farm size: 0.5 ha
Most of the agricultural activities take
place in eastern half of the country
Population distribution in China
Grain Production in China
Meat production in China
Cotton Production in China
Sugar crop production in China
Structure of agriculture in China
in % of production value
Fishery
11%
Livestock
35%
Cropping
54%
Cropping structure in China
Others
27%
Rice
18%
Wheat
14%
Cotton
3%
Rapeseeds
5%
Peanut
3%
Roots Beans
6%
8%
Corn
16%
Meat production structure in
China
Poultry
21%
Mutton
5%
Beef
9%
Pork
65%
Agriculture in national economy
GDP
%
1980
30
2004
12
Population
%
81
57
Employment
%
69
43
Export
%
20
3
Import
%
15
4
Food expenditure, urban
%
57
37
Food expenditure, rural
%
62
46
Achievements since reform
era
Development 1978-2005
Grain production growth: 1.4% on average per
year
Meat production: 8.56-77.43 million tons,
increased by 8 times
Fishery production: 4.65-51.06 million tons,
increased by 10 times
Farmers’ income: 134-3255 RBM, 7% annually
in real term
– Color TV sets: 84%
– Mobile phone: 50%
Farmers’ rights: free decision in agricultural
production, marketing and non-farm and nonrural job seeking
Major current concerns
Most important policy concerns
Food (grain) security
Growth of farmers income
Widening urban-rural gaps in various
areas
Food security
Net importer: additional 13% cropping areas
would be needed if import of soybean, cereals
and cotton should be produced domestically in
2005
Continued demand due to population growth,
income improvement and growth of other
sectors: about 5 million tons per year
Stagnated production due to resource
constraints
Reduction of arable land due to urbanization
Degradation of land quality
Shortage of irrigation water
18.5
18.0
17.5
17.0
16.5
16.0
15.5
15.0
14.5
14.0
19
78
19
81
19
84
19
87
19
90
19
93
19
96
19
99
20
02
100million Mu
Declining grain cropping area
Stagnated yields
kg/Mu
168
186
182
188
208
226
241
232
235
242
239
242
262
258
267
275
273
283
197
213
207
216
243
262
278
269
274
281
275
281
301
297
305
317
311
323
Rice
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
265
283
275
288
326
340
358
350
356
361
352
367
382
376
387
390
389
402
Wheat
123
142
128
140
163
187
198
196
203
203
198
203
213
207
222
235
228
236
Corn
187
199
208
203
218
242
264
240
247
263
262
259
302
305
302
331
313
328
油料
56
61
65
74
84
84
91
89
86
91
83
82
99
95
95
108
110
115
2002
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
粮食3
1984
1987
1990
1991
1992
1993
1994
1995
粮食
1978
1981
500
1978
1979
400
1980
1981
1982
300
1983
1984
200
1985
1986
1987
100
1988
1989
19900
单位: 吨/公顷
1993
1996
1999
单位: 吨/公顷
棉花
30
33
37
38
41
51
60
54
55
58
50
49
54
58
44
50
52
59
甘蔗
2564
2801
3174
3590
3765
3174
3619
3561
3524
3676
3540
3392
3807
3889
3906
3933
3843
3877
Rice
Wheat
Corn
Declined grain production
100million tons
02
20
99
19
96
19
93
19
90
19
87
19
84
19
81
19
19
78
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
Wheat
production
100million tons
02
20
99
19
96
19
93
19
90
19
87
19
84
19
81
19
19
78
1.3
1.2
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
Paddy rice production in China
2.2
2.0
1.8
1.6
1.4
2005
2002
1999
1996
1993
1990
1987
1984
1981
1978
1.2
Wheat trade in China
million tons
16
14
12
10
Import
8
6
Export
4
2
2004
2001
1998
1995
1992
1989
1986
1983
1980
0
Rice trade in China
million tons
4
3
2
Import
1
Export
19
80
19
83
19
86
19
89
19
92
19
95
19
98
20
01
20
04
0
Soybean trade in China
million tons
25
20
15
10
5
0
Product
ion
Import
04
20
01
20
98
19
95
19
92
19
89
19
86
19
83
19
19
80
Export
Cotton trade in China
million tons
2400
2000
1600
1200
800
400
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
0
Import
Export
Edible oil import in China
(Total, palm oil, soy oil and rapeseed oil)
700
600
500
总计
400
棕榈油
300
200
豆油
100
菜籽油
0
2001 2002 2003 2004 2005
Agricultural trade in China
USD billion
35
30
25
20
Import
15
10
Export
5
05
20
03
20
01
20
99
19
97
19
95
19
19
93
0
Income issues
Widening urban-rural gap
Large regional disparity
Poverty and low income population
Urban and rural income
RMB per capita
12000
10000
19
78
19
81
19
84
19
87
19
90
19
93
19
96
19
99
20
02
20
05
8000
6000
4000
2000
0
城镇
农村
Urban-rural income gap
rural=1
3.5
3.23
2.86
3.0
2.56
2.47
2.5
1.82
2.0
05
20
02
20
99
19
96
19
93
19
90
19
87
19
84
19
81
19
19
78
1.5
Regional Income Disparity
Low income population
Poverty population:
– per capita income bellow 683 RBM: 23.65
million
Low income population:
– per capita income bellow 944 RBM: 64.32
million
0.0
Viet Nam
Uzbekistan
Turkey
Thailand
Sri Lanka
Philippines
Pakistan
Nepal
Myanmar
Malaysia
Laos
Korea,
Indonesia
India
Georgia
China
Cambodia
Bhutan
Bangladesh
Azerbaijan
Arable land per head of agricultural
population, ha
1.2
1.0
0.8
0.6
0.4
0.2
Arable land per head of agricultural
population, ha
60.0
50.0
40.0
30.0
20.0
10.0
S Africa
Hungary
Australia
Canada
USA
Brazil
Argentina
0.0
Development of agriculture’s share
in China
80
70
60
50
40
30
20
10
19
78
19
80
18
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
0
GDP
Employment
GDP
Population
Viet Nam
Turkey
Thailand
Sri Lanka
Philippines
Pakistan
Nepal
Mongolia
Malaysia
Laos
Kazakhstan
Indonesia
India
China
Cambodia
Bhutan
Bangladesh
Azerbaijan
Agriculture’s share in GDP and
population
100
90
80
70
60
50
40
30
20
10
0
Widening urban-rural gaps
Widening urban-rural gaps caused by
rapid industrialization and urbanization
Low improvement in rural education:
– Rural economically active population: 7.5%
illiterate and semi-illiterate( less than 6 year
education) , 29.2% with 6 year education，
50.2% with 9 year education, 13.1% with 12 +
year education.
Low standards of rural medical service
New orientation of
agricultural policy in China
Building “a new socialist
countryside”
Goals:
– Increase production capacity (national food
security, raw material needs)
– Improve farmers living standards
– Strengthen rural infrastructure (road, drinking
water, electricity, biogas, cable TV, living
environment…)
– Enhance rural education, healthcare and
cultural life
– Advance democratic governance in rural
areas
New measures
Deepening comprehensive reforms
Shift the focus of governmental
expenditure to rural areas: a higher share,
especially in the budget of central
government
Governmental Revenue
RMB billion
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
3500
3000
2500
2000
1500
1000
500
0
Governmental expenditure on
agriculture and rural areas
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
350
300
250
200
150
100
50
0
Agricultural support in comparison
EU
USA
Japan
S.
Korea
Brazil
China
USD
26700
36200
33700
12700
2800
1700
Agricultural
support
USD
billi
on
1039.
1
382.1
282.5
76.6
22.8
180
in % of
agricultural
output
％
34.1
19.3
37.4
22.2
5.1
6.4
Support per
capita of
Agricultural
population
USD/
head
6525
6181
5920
1770
18
24
Per capita
GDP
To improve agricultural productivity
Stricter control on taking farmland for non-farm
purposes
Increased public funding on improving irrigation
systems and other infrastructure
Increased public funding on agricultural
technical extension
Increased funding for agricultural research:
– Agricultural research to be granted high priority in
the public investment;
– The share of agricultural research on the total
national research budget to be increased; the total
research budge itself will increase significantly.
To increase farmers’ income
Increasing agricultural income:
–
–
–
–
Reducing cost
Increase production
Stabilizing prices
Restructuring
promoting off-farm employment in and out of
rural areas
– Better policy framework for rural workers in cities
Direct subsidy
To improve rural infrastructure
Public investment in rural road, drinking
water etc.
Village renovation:
– To and in village road
– Draining system
– New toilets
– Garbage collection and disposal
– New housing (design and blueprints)
To enhance rural education,
health care and social security
More support to implementing 9 year basic
education:
– Tuition free
– Free textbook and subsidy to boarding fees
– Improving teaching facilities and teachers salary
More support to rural health care:
– New medical insurance system for serious illness
– More investment in rural hospitals
Social security:
– More money for poverty reduction
– Pilot projects for rural pension