China to largely support 2013 spring production

According to the news from the Ministry of Finance of China (MFC) on 21 Jan., 2013, it has allocated USD19.46 billion of subsidy to provincial governments (including local governments in autonomous regions and municipalities) for the support of spring production in 2013, including USD2.4 billion of direct grain purchase subsidy and USD17.06 billion of comprehensive subsidy of agricultural means of production.

Additionally, aiming to support local governments to better complete the payment of direct grain purchase subsidy, the MFC allocated USD5.02 billion of grain risk fund (a special fund used to ensure the stabilization of grain price and the normal flow order of grain in domestic market) to local governments. Adding up the grain risk fund raised by local governments, the total fund reached USD6.08 billion.

Aiming to ensure grain safety, China has increased the investment in agricultural production year by year. Total investment in agriculture in 2012 reached USD195.65 billion, up 18.04% over that in 2011.

Such a large investment had finally gained a good return in 2012. According to the National Bureau of Statistics of China, China's total grain output in 2012 enjoyed a ninth growth in the past nine years, reaching 589.57 million tonnes and up 3.2% over that in 2011.

Moreover, the annual average income of farmers in this period also witnessed great growth, reaching USD1,260.67, up 10.7% over that in 2011.

Eyeing the growing population and the gradually shrinking of arable land, China has done a lot of work in improving grain output and stimulated the planting enthusiasm of farmers in recent years. However, as the fast development of urbanization in China in recent years, lots of farmers started to flow into cities for works and abandoned lots of farmland. The great gap between the incomes of working in city and farming has also alerted Chinese government. It is really hard for it to fill or narrow the gap in the near future even though China continued to increase the investment in agricultural production subsidies year by year.

The contradiction in the wills of raising farmers' income and encouraging them to stick to agricultural production for the growth of grain output has bothered Chinese government in the past few years.

The policy carried out in 2005, namely the Management Approach of Rural Land Contracting Right of Management Circulation, has largely balanced the problems. It encourages those farmers who are not willing to continue planting but to rent their farmlands to those large plantations. So that farmers can work in other fields and the farmlands are still not abandoned.

In the No. 1 central document of 2013, Chinese government is predicted to mainly focus on the reformation and innovation of agricultural management system which will encourage more professional plantations and develop more professional collective organizations.

Even so, Chinese government won't let the number of large plantations to increase as large as it can, because too many farmers abandon farmland and choose to work in cities which will cause lots of urban management issues.

The report above was derived from Crop Protection China News issued by CCM in February.

Table Contents of Crop Protection China News 1302:

China to largely support 2013 spring production

China: cotton reserve measure facing with dilemma

Main pesticides' price trend in China in 2012

China: grain import volume up 156.5% YoY in Jan.–Nov. 2012

China: fertilizer industry needs transformation

Anhui Huaxing: pesticide business to be expanded after reorganization

Hebei Veyong reveals 2012 financial report

Pest and disease occurrence forecast in 2013

Crop Protection China News, a monthly publication issued by CCM on 31^st, offers timely update and close follow-up of China’s crop protection industry dynamics. It also provides you with professional features articles, keeping you aware of the latest industrial development, import and export analysis, and market data. 

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

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17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

China to Build up Large Areas of High Standard Farmland in 2011-2015

Aiming to decrease the grain security risk brought up by the declining area of arable land and reinforce national grain security guarantee ability, China plans to increase the area of arable land by 1.6 million ha. during the 12th Five-Year Plan (2011-2015), based on CCM International’s latest issue of Crop Protection China News.

On 24 April, 2012, Ministry of Land and Resources of China (MLR) held a news briefing interpreting the policy released on 26 March, 2012, namely National Land Consolidation Planning (2011-2015). According to Dong Zuoji, an official from MLR, China will make great effort to the consolidation of land in the rural and city areas, especially those rural construction lands that are now abandoned, idle and inefficiently used. He said that within four years time from now on, China will increase effective area of arable land by 1.6 million ha. before 2015.

Moreover, despite the plan above, China also plans to build up high standard farmland of 26.67 million ha. during this period. This kind of farmland is with many advantages compared with normal farmland in China, such as well-equipped facilities, high and stable yield, good ecological environment, strong anti-disaster capacity. The total investment of the plan is predicted to reach USD95.24 million. After the construction of the high standard farmland project, China's grain production capacity is predicted to increase by 25,000,000t/a.

The plan will be executed in several stages in four years time. So far, the first stage of the plan has been issued to 31 provincial governments and municipal governments in China. The goal of the plan in first stage is to finish the construction of the high standard farmland with an area of 6.67 million ha. in 2012. The remaining 20 million ha. of the construction area is regulated to be finished in the coming three years. Actually, the construction of high standard farmland is also considered to be a different way for Chinese government to encourage large-scale plantations in China.

As the urbanization in China is speeding up, the arable land in China has been shrinking quickly in the past few years. Stopping the arable land shrinking and defending the red line of 120 million ha. of arable land have became urgent tasks for the Chinese government. Even though it has carried out policies to stimulate peasants' planting enthusiasm, the prices of main grains have been restrained by the Chinese government at a certain level to maintain the stablization of prices. Thus the peasants' income still remains at a relatively low level which leads to the continuous shrinking of arable land area.

Eyeing the area of arable land can't be efficiently increased, the quality of the arable land is considered to be a very important factor for improving grain capacity. It has been calculated by an agricultural department in Shandong Province that grain output will increase by about 2.25 tonnes while the area of high standard of basic farmland increases for one ha. With the prediction that Chinese population will reach the peak in 2030, China has to build up at least 66.67 million ha. of high standard farmland to meet the grain demand.

Source: Crop Protection China News 1208

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

Content of Crop Protection China News 1208:

China to build up large areas of high standard farmland in 2011-2015

Jiangsu Yangnong: net profit surges by 40.73% in Q1 2012

Jiangsu Changqing to rebuild imidacloprid production line

Thaihot Group to accelerate expansion in organic fluorine industry

Nanjing Redsun to found a pesticide subsidiary

China: lots of work need to be done on pesticide residue

Agricultural enterprises show great interest in unmanned helicopter spraying market

Planting acreage of early rice in China realizes recovery growth

Wheat diseases and pests to seriously occur in 2012

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1062.html