China pledges hefty investment to boost agriculture

NPC, CPPCC Annual Sessions 2009

Special Report:Global Financial Crisis

Chinese Premier Wen Jiabao delivers a

government work report during the opening meeting of the Second Session of

the 11th National People's Congress (NPC) at the Great Hall of the People

in Beijing, capital of China, March 5, 2009. (Chinese media/Fan

Rujun)
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BEIJING, March 5 (Chinese media) -- Chinese Premier Wen

Jiabao pledged Thursday to add another 120 billion yuan to boost the country's

agriculture.

Addressing nearly 3,000 lawmakers at the Second

Session of the 11th National People's Congress, Wen said in his government work

report that central government spending on agriculture, farmers and the rural

areas would total 716.1 billion yuan (104.6 billion U.S. dollars) in 2009, a

year-on-year increase of 120.6 billion yuan.

Calling agriculture the "foundation of the economy",

Wen said the investment was part of a package plan to ensure steady and rapid

economic development of the country against the global financial crisis.

The money would be used for improvement or

construction of rural public facilities, expanded agricultural subsidies to

farmers, subsidies for the purchase of agricultural machinery and tools, and

popularizing agricultural science and technologies.

The government would apply the strictest possible

systems for protecting arable land and economizing on the use of land, and do

everything in its power to keep the total amount of arable land above the red

line of 120 million hectares, Wen said.

"We will effectively keep the area planted in grain

crops stable, focus on increasing the yield per unit area and optimizing the

variety mix, and increase the country's grain production capacity by 50 million

tons," he said.

China, with a population of 1.3 billion, is faced

with severe challenges in safeguarding grain security due to rising living

standards, decreasing arable land, water shortages and climate change.

Continuous drop in economic growth rate due to the

impact of the global financial crisis has become a major problem affecting the

overall situation, Wen said in his report.

"It has become more difficult to maintain steady

agricultural development and keep rural incomes growing", he admitted.

According to Wen, greater priority would be given to

major grain-producing counties in implementing the policies and measures

supporting grain production. More financial rewards would be provided to major

projects for industrializing grain production.

The country would also raise minimum grain purchase

prices "significantly", and keep the prices of agricultural products stable at a

reasonable level to encourage farmers to grow more, Wen said.

The Premier further pledged to ensure the existing

land contract relationships remain stable and unchanged for a long time to come,

and enhance and better protect the land contract and management rights enjoyed

by rural residents, including migrant workers who are away from their home

villages.

Other major items on the agenda include adjusting the

agricultural structure based on market demand, and intensifying development of

agricultural infrastructure and projects designed to improve the life of rural

people, such as building roads and water conservancy facilities and upgrading

low and medium-yield farmland.

The government would increase farmers' incomes in a

variety of ways, Wen said, quoting steadily growing rural incomes as one of the

major targets for this year's national economic and social development.

To achieve this goal, the country would vigorously

develop modern agriculture with distinctive local features, support intensive

processing and sale of agricultural products, develop rural secondary and

tertiary industries, accelerate the development of small towns, and strengthen

county economies, Wen said.

Efforts to alleviate poverty in the countryside would

also be intensified, said the Premier, adding that a new poverty line would be

adopted and all low-income rural residents would be covered by the poverty

relief policy with grants increased to 1,196 yuan per person on average.

The policy, which would cover more than 40 million

people, marked a new stage in China's efforts to reduce poverty through

development, he said.

Graphics shows central government

budgetary spending on agriculture, rural areas and farmers increased by

37.9% in 2008 according to government work report of China on March 5,

2009.(Chinese media/Ma Yan)
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