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The core of agricultural modernization: Improving labor productivity (No 91, 2015)


By Ye Xingqing, Research Department of Rural Economy of DRC

Research Report No 91, 2015 (Total 4776)


Small scale operation and low labor productivity are the weak links restricting China's agricultural modernization and leading to the high cost of agricultural production and the continuous decrease of agricultural competitiveness. As a result, it is difficult to make the farmers' income reach the average level of the whole society and the economic growth prematurely loses the effect of labor reallocation. From the perspective of lands, special natural resource endowment, property rights system and configuration preferences are not conductive to improving agricultural productivity. From the perspective of human beings, the special urban-rural dual system and the urbanization pathways are not beneficial for the improvement of agricultural productivity. During the 13th Five-Year Plan period, promoting agricultural moderate scale management and improving agricultural productivity should be made the core for accelerating the pace of agricultural modernization. Through the development of new urbanization, efforts should be made to enable rural migrant workers permanently settle down in urban areas and completely leave rural areas, and the rural man-land relationship can be improved fundamentally. The reform of the separation three rights (land ownership right, contract right and management right) could promote the circulation and concentration of agricultural land and speed up the pace of development of agricultural moderate scale operation. It is suggested that the government should promote the balanced utilization between agricultural labor force and labor time by means of integrated development of thrice industry.