In an insightful discussion, we explore the dual challenge of enhancing farmers’ incomes while ensuring a bountiful harvest. Farmers, especially those dedicated to rice cultivation, have firsthand experiences that reflect the realities of agricultural policies.
Take, for instance, Huang Tieshan from Jianzhu Village in Ningxiang City, Hunan Province. After his 4.25 acres of farmland were included in a high-standard farmland project last year, he found the process of planting much easier. This year, by selecting premium hybrid rice varieties and opting for entrusted management services, he has seen his yield increase by about 50 pounds per acre. The economic benefits are significant—his net profit for two crops will be significantly higher. With a smile, Huang declared, “I’ll be planting double-season rice again next year.”
The continuous increase in grain production can be attributed not only to enhancements in farming conditions, crop varieties, and agricultural machinery but also to the hard work of farmers themselves. President Xi Jinping emphasized, “To incentivize farmers to grow grain, the key is to ensure they can earn money from it.” The decisions made during the 20th National Congress of the Communist Party of China highlight the need for a robust mechanism to ensure farmers’ income from grain production while keeping the prices of essential agricultural products at reasonable levels. The recently implemented Food Security Law establishes specific regulations to encourage grain cultivation, creating a stable policy environment that allows farmers to profit from their efforts.
The willingness of farmers to grow grain, and the extent to which they choose to do so, hinges on the financial returns they can expect. Strengthening policies to protect farmers’ investments is crucial for ensuring their peace of mind. From extending land contracts to implementing a tripartite policy framework of pricing, subsidies, and insurance, to effectively utilizing grain reserves, our country has consistently improved its agricultural support policies. By focusing on the needs of smallholder farmers, initiatives like “grain banks” for storage and initiatives for recycling agricultural films are being explored to enhance the precision and effectiveness of support measures.
However, challenges persist, such as rising agricultural input costs, fragmented farmland, and lower comparative profitability from grain production. Survey data reveal that villages primarily focused on grain crops average about 20% lower income than those with other crop focuses. As rapid urbanization drives rural populations toward cities, the aging and diversification of the rural workforce raises the pressing question, “Who will farm the land?” Thus, training a new generation of professional farmers is critical for the future of agriculture.
In the long term, addressing low grain profitability will require efforts towards improving operational efficiencies. Experience shows that guiding new agricultural entities to leverage standardized, intensive practices is an effective strategy. By maintaining core rural management systems, some regions are exploring integrated approaches like “combining small fields into larger ones” and establishing beneficial links between new agricultural entities and farmers. Such moves aim to close the gaps in agricultural social services and enhance the efficiency of grain production at a moderate scale, yielding promising results that are worth disseminating.
The agriculture industry, encompassing a multi-trillion-dollar market, holds immense potential. To inspire greater commitment from farmers, we must focus on enhancing the entire supply chain to improve quality and efficiency. At a macro level, the short supply chains and low added value substantially impact the economic performance of the grain industry. The recent decisions from the 20th National Congress stress the establishment of horizontal compensation mechanisms across grain production and sales areas. Many grain-producing regions have risen to the challenge, working to break the cycle of “producing more grain and having weaker financial returns.” For instance, Henan Province encourages grain processing firms to consolidate in main production areas, while Shandong actively develops recycling and multifaceted utilization of grain byproducts, driving sustained increases in industrial output.
By strategically optimizing the upstream and downstream structure of the grain industry, we can ensure that those who cultivate grain can reap more benefits from their contributions.
As the saying goes, “You reap what you sow.” The fields are aglow with the joy of harvest this autumn. By effectively combining policies and market strategies, we can advance farmers’ incomes alongside grain production, enhancing their sense of gain, happiness, and security, thereby solidifying the foundation of our nation’s food resource system.
