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China pledges hefty investment to boost agriculture

(Xinhua)
Updated: 2009-03-05 09:40

China on Thursday pledged to spend an additional 120 billion yuan ($17.53 billion) to boost the country's agriculture.

Central government spending on agriculture, farmers and the rural areas would total 716.1 billion yuan in 2009, a year-on-year increase of 120.6 billion yuan, said a government work report to be delivered by Premier Wen Jiabao at the Second Session of the 11th National People's Congress.

Calling agriculture the "foundation of the economy", the report, distributed to the media before the opening of the session, says the investment is part of a package plan to ensure steady and rapid economic development amid the global financial crisis.

The money would be used for construction of rural public facilities, expanded agricultural subsidies to farmers, subsidies for the purchase of agricultural machinery and tools, and spending on agricultural science and technologies.

"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," the report reads.

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 the work 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 protect the land contract and management rights enjoyed by rural residents, including migrant workers who are away from their home villages.