MoA minister: more green ag funds, less rice paddy area, new ag cooperation plan with Russia

context: Press conferences with senior officials are a hallmark of the Two Sessions agenda. MoA Minister Han Changfu largely covered familiar talking points, but a number of details have immediate policy implications. His mention of a joint China–Russia ag cooperation plan is of particular interest as the region may become a major source of bulk commodity imports in coming years.


Han Changfu 韩长赋 Ministry of Agriculture (MoA) minister discussed top priorities in agriculture policy at a press conference on the sidelines of the 2018 Two Sessions, discussing a push for higher quality in agriculture, the rural revitalisation agenda, land reform, and international cooperation.

Russia and China's Ministries of Agriculture are jointly preparing a Northeast China–Russia Far East and Baikal Agriculture Cooperation Plan to guide bilateral ag trade and investment in the region and make it more convenient. The Plan will also cover talent and technical personnel, Han says. Last year, bilateral agricultural product trade exceeded US$4 bn.

Han says MoA is working with Ministry of Finance to redesign agricultural subsidies and support systems to fund green ag development.

Han says next steps on rural revitalisation will be release of major strategic plans, led by National Development and Reform Commission.

Han says 'while grain is a special commodity, it is also a commodity, and therefore grain production must adjust to changes in the market.' Remarking on downward adjustment of minimum purchase prices for wheat and rice, Han notes farmers will receive direct subsidies to supplement their incomes, and support is planned this year to help farmers transition to higher quality rice, and high- and low-gluten wheat varieties. MoA is also targeting a reduction in rice paddy area this year.

On land reform, Han says

  • extension of farmland contracts means they now expire around 2050, when the country may be ready for 'more significant' further land reforms
  • existing policies encourage rural households that resettle in cities to voluntarily return land contracts to the rural collective and be compensated according to state-set rates; after the second round of rural land contracts expire, 'other approaches' may be considered
  • three rights separation will be piloted for rural homestead land and idle rural houses this year, but there is currently not a legal means for urban hukou holders to build houses on rural homestead land; it is only legally available to members of the local rural collective economic organisation