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Supply-side Reform Could Promote Green Transformation of Agriculture



By Ye Xingqing, DRC


This paper is focused on stressing the importance of fulfilling the following four tasks.

First, we need to take a problem-oriented approach. The CPC Central Committee has repeatedly reaffirmed supply-side reform in agriculture, aiming at solving the four major problems, related to the weakening of China’s international competitiveness, sustainable development ability, supply-demand balance and driving force resulting from income.

Second, we need to focus efforts on major issues and let the right market signal play the decisive role. We need to guide the transformation of agricultural development with agriculture subsidy policy, promote the transfer of farmland use rights to improve labor capacity, make the growth of green, healthy production capacity outperform the marginal capacity, expand and reconstruct agricultural industrial chain and value chain and implement the strategy of comparative advantage.

Third, we need to reduce agricultural costs by focusing on addressing labor and land issues. The main reason for price inversion and low competitiveness is due to the rising cost of agricultural production. We need to enhance agricultural mechanization and strive to solve the problem of fragmented development of farming. In addition, land contractors should not take land rental fees as the major source of income.

Fourth, the fundamental way out lies in innovation. According to the ever increasing demand on the safety of agricultural products and a sound ecosystem, priority should be given to improving the quality and safety of agro-products and making the improvement of environment and promoting sustainable development of agriculture an urgent mission to be fulfilled. We need to promote concept innovation, technological innovation and institutional innovation.