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Policy Framework for Fostering New-Type Professional Farmers in China

Dec 05,2016

By Xiao Junyan

Research Report Vol.18 No.5, 2016

At present, China’s agricultural development faces many problems. The most serious one is who farms. Due to rapid urbanization, industrialization and marketization in China, as well as huge disparity between urban and rural areas brought by the urban-rural dual system, agriculture is not as competitive and attractive as before. A large number of young farmers move to urban areas; many places see aging farmers; farming is no longer viewed as the most important activity but a way to provide food for themselves instead of goods to sell. Such situation, if not changed, will no doubt pose severe threats to agricultural production as well as food supply in China. As a result, the 2012 No. 1 Central Document put forward the goal of fostering new-type professional farmers, which was emphasized in other central documents as well. Local governments tried to actively realize the goal, and related central departments have strengthened education and training for farmers. However, in general, there is no effective policy system for fostering new-type professional farmers at the state level. An in-depth study is in urgent need.

I. Overview of Current Policy for Fostering New-Type Professional Farmers in China

At the state level, Ministry of Agriculture (MOA) plays a guiding role in this aspect. It issued Pilot Programs for Fostering New-Type Professional Farmers in August 2012, Guiding Opinions on Promoting the Development of Family Farming in February 2014, and Notice on Overall Accreditation Work of New-Type Professional Farmers and Rural Practical Talents in June 2015. Such documents initiate pilot programs for fostering new-type professional farmers, try to build the system of education and training, accreditation and management as well as policy support. They also propose specific guidance on popularizing the concept of new-type professional farmers, formulating accreditation and management rules, standardizing accreditation procedures and including education and training. Besides, these documents state that it is important to get support from departments like organization, human resources and social security, development and reform, and finance. A policy system should be established for fostering new-type professional farmers and supporting rural practical talents. These documents also propose that accreditation of new-type professional farmers and rural practical talents should be coupled with fiscal subsidies, demonstration programs, land transfer policies, financial and social support, so as to make the title more attractive and useful. Nonetheless, the lion’s share of policies focuses on education and training, with few policies in other aspects. Thus, the title of new-type professional farmer is not attractive.

Much progress has been made at the local level. The past decade saw emerging new-type agricultural business entities, like traditional family farms, agricultural joint-equity collectives, family farms with land contracted from village collective or town government, family farms with legal person status, and farms with industrial and commercial capital to rent land. Local governments have actively studied policies and created valuable experience. Among various new-type business entities as well as supportive policies, typical examples are family farms with legal person status in Ningbo, Zhejiang Province, university graduates in Ningbo engaging in agriculture, agricultural managers in Chongzhou, Chengdu, Sichuan Province, family farms contracted land from villages in Songjiang District, Shanghai, which provide significant experience for formulating state policies. Local governments have specific policies to foster new-type professional farmers, gradually creating professional and long-term professional agricultural jobs. Here are main practices. First, it is important to create access and exit mechanism or supporting mechanism for agricultural production, and try to realize scaled-up operation, reach the standard and protect ecological environment. Second, support like fiscal subsidy, financing subsidy, supply of agricultural materials, and product acquisition should be given to agricultural production based on state and local standards. Third, qualified farmers or professional agricultural managers should be allowed to enjoy the social security and subsidy for urban workers or citizens. Fourth, it is of necessity to help university graduates work in agriculture, by giving salary subsidies, urban residence permit, and social security subsidies the same as social workers. According to local practice, fostering new-type professional farmers is a complicated project, which needs policy innovation in various aspects.

Generally speaking, the underlying cause for the problem “who farms” is that rapid industrialization and urbanization in China lead to fast change of economic, industrial and agricultural structures in urban and rural areas; the direct cause is the unfavorable agricultural business environment, low agricultural income, and lack of social benefit and security for farmers. Much attention must be paid to the fact that the problem “who farms” becomes more prominent even though China gradually strengthens beneficial policies for farmers in the past decade. Therefore, we need more targeted policies and measures instead of merely providing more education and training to farmers or relying on the existing pro-farmers policies.

II. Priorities of Policies Supporting New-Type Professional Farmers

At present, the economic and social structure in rural China is changing, with an increasing number of new-type professional farmers and new agricultural business entities. Hence it is of great significance to determine the priorities of supportive policies.

The document Guiding Opinions on Pilot Programs for Fostering New-type Professional Farmers, issued by MOA, determines the appropriate types and features of new-type professional farmers. As the document says, “based on the basic operation system, agricultural production and the development trend in rural China, new-type professional farmers are modern agricultural workers with some professional skills and income mainly from agriculture. There are three types, farmers engaging in production and operation, farmers with specialized skills, and farmers providing social services. The first type refers to those agricultural labors with some resources, professional skills, capital and income mainly from agriculture, including specialized farming households, family farmers and leaders of farmers’ cooperatives. The second type mainly includes agricultural workers and employees who have some specialized skills and work in farmers’ cooperatives, family farms, specialized farming households and agricultural businesses. The third type refers to those working in social service organizations or self-employed individuals providing services before, during or after agricultural production, and earning income mainly from such efforts. They include rural information collectors, rural brokers, agricultural machinery service personnel, plant protectors, and village-level animal epidemic preventers.” ...

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