Insights into Chinese Agriculture

204 Pages·2018·3.452 MB·English

by  Yunhua Zhang

Yunhua Zhang
Insights
into Chinese
Agriculture
Insights into Chinese Agriculture
Yunhua Zhang
Insights into Chinese
Agriculture
123
Yunhua Zhang
Beijing,China
Translated byCurtis Evans
ISBN978-981-13-1049-2 ISBN978-981-13-1050-8 (eBook)
https://doi.org/10.1007/978-981-13-1050-8
JointlypublishedwithShanghaiFarEastPublisher,Shanghai,China
TheprinteditionisnotforsaleinChinaMainland.CustomersfromChinaMainlandpleaseorderthe
printbookfrom:ShanghaiFarEastPublisher.
LibraryofCongressControlNumber:2018945096
TranslationfromtheChineselanguageedition:InsightsintoChineseAgriculturebyCurtisEvans,
©ShanghaiFarEastPublishers2015.AllRightsReserved.
©ShanghaiFarEastPublisherandSpringerNatureSingaporePteLtd.2018
Thisworkissubjecttocopyright.AllrightsarereservedbythePublishers,whetherthewholeorpart
ofthe material is concerned, specificallythe rights of translation,reprinting,reuse ofillustrations,
recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmission
or information storage and retrieval, electronic adaptation, computer software, or by similar or
dissimilarmethodologynowknownorhereafterdeveloped.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt
fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
Thepublishers,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis
bookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishersnorthe
authors or the editors give a warranty, express or implied, with respect to the material contained
hereinorforanyerrorsoromissionsthatmayhavebeenmade.Thepublishersremainsneutralwith
regardtojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations.
Printedonacid-freepaper
ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSingaporePteLtd.
Theregisteredcompanyaddressis:152BeachRoad,#21-01/04GatewayEast,Singapore189721,
Singapore
Foreword I
One China: Building Agricultural Power—The Burden is Heavy
and the Road is Long
Comrade Zhang Yunhua has long been engaged in researching agricultural and
ruraleconomicpolicyattheDevelopmentResearchCenteroftheStateCouncil.He
has his own independent analysis and understanding of these issues. Insights into
Chinese Agriculture is the crystallization of his many years of thought.
Farmingisthesourceoffoodandthebasisfortheexistenceanddevelopmentof
humanity. In the process of human civilization, the development of society has
demanded that more and more people divorce themselves from agricultural pro-
duction, even to the point of breaking away from material production altogether.
Nevertheless, the fundamental uniqueness of agriculture is that it is irreplaceable.
Nomatterhowrapidlytechnologyprogresses,industrializationcannotsubstitutefor
it. The production of foodstuffs and a major portion of the raw materials used in
lightindustriesasofyetcanonlybeprovidedbyagriculturalproduction.Nomatter
howtheeconomydevelops,ifpeoplewanttosurvivethentheywillhavetoeatand
wearclothing;thereisreallynowaythatthiswillchange.“Themassesregardfood
as their prime want.”1 Iffarming does not flourish, then people’s existence cannot
be assured and society will have no basis for further development.
Over the last thirty-five years of China’s policy of reform and opening to the
outside world, China has entered the middle stage of industrialization and rapid
urbanization. Agriculture itself has also entered a new stage of development. It
makes up a lower and lower proportion of China’s gross domestic product (GDP).
The increases in farmers’ incomes rely less on farming and more and more on
non-agricultural industries.
1ThisisanidiomslightlyparaphrasedfromtheHanshu(Historyofthe[Former]HanDynasty)by
BanGu(A.D.32–92)andBanZhao(c.A.D.48–c.112),oneofthetwenty-fourofficialdynastic
histories.—trans.
v
vi ForewordI
Inthisnewstageofdevelopment,agriculturehasnotbeenweakened,buttothe
contrary has been given a new embodiment. Along with the increase in China’s
population and with the rise in living standards, society has increased its demands
for higher quality and agreater variety offarm commodities. Iffarmingis notable
to satisfy these demands, economic development will be adversely affected and
result in major problems. Although China can utilize international agricultural
markets to adjust its domestic surpluses and deficiencies, as an economic power,
China must mainly rely on its own domestic farm commodities to satisfy supply
and demand. Farming not only merely provides our needs for commodities and
extensive employment, but it also provides an excellent ecological system and
serves diverse functions relating to life, education, and culture. It is clear that the
higher the level of economic development, the more advanced society is and the
more diverse agriculture becomes. In appraising it, one not only merely looks at
economy and technology, but also at safety, the environment, and human culture.
Therefore,itisnecessarytotransformitsconcepts.Agriculturemustassumegreater
andmorepersistentresponsibilitythanithasatanytimeinthepast.Itisbecoming
increasingly important and irreplaceable, given that it has broad room to grow.
Since2004,thecentralauthoritieshavesuccessivelyissuedtwelveNo.1Central
Documents2regardingthe“ThreeRuralIssues,”3formulatingaseriesofpoliciesto
strengthen agriculture and benefit farmers. These documents have resulted in great
changes for the better for farming and rural areas: The production of food has
increased steadily, agricultural restructuring has proceeded at a steady pace, and
farmers’ incomes have continued to rise. Nonetheless, the overall basis of Chinese
agriculture is still very weak; in the process of developing it, some new problems
have emerged that are worth noticing. Now, the prices of some domestic and
internationalfarmcommoditieshavebeenturnedupsidedownanddomesticprices
ofsomeimportantcommoditieshavestartedtoexceedtheCIFdutiablevalue[i.e.,
the cost, insurance, freight, and value on which custom duties are paid] of similar
foreign products.
The “ceiling effect” on the price of domestic farm products has started to
manifestitself.Thatisbecauseasfarmlaborhasbecomemoreandmoreexpensive,
rent has risen higher and higher; investments in agricultural manufacturing are
increasing, such as farm machinery, chemical fertilizers, agrochemicals, and agri-
cultural plastic sheeting used for growing plants under cover. As a result, pro-
ductioncostshavequicklyescalated.Itisevermoreclearthattheriseinthecostof
farm products is causing an economic squeeze to be felt.
When China entered the World Trade Organization (WTO), we promised to do
somethingaboutsubsidies,forexample,AmberBoxsubsidies,whicharethosethat
2No.1CentralDocumentisthefirstdocumentoftheyearissuedbytheCentralCommitteeofthe
CommunistPartyofChina(CPC);theseoftenalludetotheimportanceplacedonagriculture.—
trans.
3The“ThreeRuralIssues”arethoseofagriculture,ruralareas,andfarmers.—trans.
ForewordI vii
distort production or trade.4 We promised to only institute subsidies that do not
exceed8.5%ofthevalueofagriculturaloutput.Now,someofourfarmproduction
and price subsidies have started to draw near to that “Amber Line.” Under present
tradeprotectionpolicies,ifournation’sfarmcommoditieshitthis8.5%ceilingand
price-driven imports continue to increase, it will be difficult to avoid shocks to
Chinese agriculture caused by imports. There has been a long-term problem of
over-exploitation and over-use of agricultural resources because we have severely
overdrawnourecologicalaccountinordertoincreasethevolumeoffarmproducts.
In some places, there is land that is impossible to farm and water that cannot be
used for irrigation. The old environmental resource debt has not been repaid, and
newsuchdebthascontinuedtoberunup.Redwarninglightshavestartedflashing
that tell us of danger to our natural resources and the environment. One could say
that the development of agriculture is confronted with the double whammy of a
price ceiling and a price floor effect; at the same time, it also faces the flashing of
environmentalwarninglightsandtheapproaching“AmberLine”ofWTO’sAmber
Box.
Facing these great changes and challenges, there is only one way out: China
mustquicklytransformitsapproachestoagriculturaldevelopment.Howcanthisbe
done? In the past, such development depended to some degree on exploiting
resources and the environment as much as possible, mainly seeking growth in the
volume of farm output. Nonetheless, now we must shift to lay equal stress on
quantityandefficientquality.Chinaissuchalargecountrythatwemustnotignore
the quantity of production. We much guarantee the stability of output of major
agricultural products. With this as its foundation, we must attach more importance
to promoting the quality and efficiency of agricultural development. We must lay
morestressonincreasingthepowerofouragricultureininternationalcompetition,
technological innovation, and sustainable development.
InDecember2013,GeneralSecretaryXiJinpingemphasizedatthecentralrural
work conference: If China wants to be strong, agriculture must be strong. If China
wantstobebeautiful,thecountrysidemustbebeautiful.IfChinawantstogetrich,
the farmers must get rich. Strengthen farming. Beautify the countryside. Enrich
farmers. These are lofty concepts and grand propositions with abundant connota-
tions.Thisisamatterofrealizingthedreamofcreatinganaffluentsociety;thisisa
matterofrealizingtheChineseDreamaboutthe“ThreeRuralIssues.”Allofthese
4In WTO terminology, subsidies of agriculture and agricultural commodities are categorized as
belonging to one of three different-colored “boxes.” Green Box:contains unlimited government
subsidies that do not distort trade (e.g., research funding, inspection programs, disaster relief,
farmertraining).BlueBox:containstoleratedaid,i.e.,subsidiesthatdonotincreaseasproduction
increases(e.g.,subsidieslinkedtoacreageornumberofanimals).BlueBoxsubsidiestendtobe
highlycontroversial.AmberBox:containsaidtobeavoidedandreduced,andincludesalmostall
domesticsupportmeasuresconsideredtodistortproductionandtrade(i.e.,everythingnotincluded
in the Blue Box or Green Box). The Amber Box contains subsidies for price supports and
subsidies directly linked to production (e.g., seeds, fertilizers, irrigation subsidies), export
subsidies,cheaploans,etc.—trans.
viii ForewordI
concepts are providing the basic direction for successfully dealing with the “Three
Rural Issues” in the new era.
Granaries must be full, food and clothes must be ample, and all under Heaven
must be peaceful: These have been the enduring and unchanging laws of society
sinceancienttimes.Thegenuinelypowerfulcountriesoftheworldarethosethatdo
not have soft underbellies. They are all able to resolve the problem of feeding
themselves.
Firstofall,instrengtheningagriculture,itisnecessarythatwetaketheinitiative
to ensure food security at all times. The major objective of our country’s agricul-
tural development is to guarantee that all people can not only “eat their fill,” but
also “eat well.”
In strengthening agriculture, it is necessary to guarantee, “from farm to dinner
table,” the quality and safety of farm products and foodstuffs. The fundamental
realitiesofourcountryarethattherearetoomanypeople,toolittleland,andwater
is in short supply.
Instrengtheningagriculture,itisnecessarytodothefollowing:Giveprominent
position at all times to the preservation and conservation of resources in farm
development. Establish and strengthen an extremely strict protective system of
farmlands and an extremely strict system of economical land use. Develop hus-
bandrythatrecycles,isecological,andisconservation-oriented.Inaddition,forma
development style that both conserve resources and are environmentally friendly.
To equip farms with modern material conditions and to transform them with
modern science and technology are important hallmarks of the modernization of
agriculture. They are weak links in our country’s agriculture that urgently require
strengthening.
Instrengtheningagriculture,itisnecessarytoputgreateffortintoimplementing
a scientifically and technologically strong strategy; to deepen reforms of the sys-
tems of agronomic science and technology; and to accelerate the construction of
newinnovativemarketingsystems.Intheprocessofrapidurbanization,andinthe
resultant wake of large numbers of rural youths and adults migrating to cities to
become laborers or to engage in trade, the quality of the farm labor force has
revealedastructuraldecline.Thatistosay,theoutflowoftalentfromruralareasis
severe, manifesting prominent problems of “the hollowing out of villages,”
“farming becoming merely a sideline occupation,” and “the aging of the farming
population.”
Instrengtheningagriculture,inordertosolvetheproblemof“Whowillfarmthe
land?”, it is necessary to guide farmers to voluntarily transfer their rights to rural
contracted land management in order to encourage the development of diverse
forms of operations on an appropriate scale. There needs to be professional cor-
porate farming, management by multi-household enterprises, family farms, spe-
cializedcooperativesoffarmers,etc.Wealsoneedtoexertgreateffortstotrainnew
professional farmers who are well educated, technologically sophisticated, and
good at management. There should be farmers who take the initiative in entering
themarketplaceandanagriculturethattakestheinitiativetomakethistransitionto
the market. But this should not be a halfhearted marketization reformation.
ForewordI ix
Instrengtheningagriculture,itisnecessarytoactdecisivelyto:unswervinglydo
away with all unreasonable restrictions and discrimination that hobble farmers;
relinquish controls and let farmers audaciously force their way into markets; and
genuinely enable markets to allocate resources. Cultivating the land is an industry
thatreliestoahighdegreeonnaturalresources.Inacountrywithtoomanypeople
andtoolittleland,itisdifficulttogreatlyincreasefarmlaborproductivity.Itishard
for small-scale farmers to deal with rising production costs. Farming’s economic
benefits to society are great, but its economic benefits to the individual farmer are
small.
Finally, in strengthening agriculture, it is necessary to perfect policies for pro-
tecting farming. At present, although the upper limits of the Amber Box subsidies
[i.e., those which have the effect of distorting production and trade] are already
beingapproached,therearenolimitationsonBlueBoxsubsidies.Wemustincrease
policies that support farming and intensify efforts in the areas of infrastructure
construction,insurance,povertyalleviation,anddirectincomesupportforfarmers.
Inthisbook,ComradeZhangYunhuaanalyzesandexplainsinsimpletermsthe
complicatedproblemsofagriculture.Hesummarizestheachievementsandexisting
problems of its development. He also reviews in summary fashion the unfolding
process of the development of government policy regarding agriculture.
Furthermore, he introduces fundamental and general principles of agricultural
development. Finally, heexploresthedirection offuture government policyinthis
area.Thecontentofthewholebookisprofessionalandprescient,andisaworkthat
allowsonetounderstandChineseagricultureinarelativelysystematicmanner.One
hopesthattheauthorwillcontinuetodiligentlystudyandexplorethissubjectinhis
future research.
Beijing, China Han Jun 韩俊
January 2015 Director of the Rural Work Leading Group
Office of the Central Committee of CPC
Foreword II
It is not Easy to Understand Chinese Agriculture
WhatisagriculturelikeinChina?InthemindsofmosturbanChinese,thereappear
images of ox-drawn plows and donkeys carrying sacks of grain on their backs.
What they do not know is that in China the level of mechanization of plowing,
cultivating, and harvesting has reached 59.48% (as of the end of 2013). That is,
approximately 60% of farming practice has said good-bye to human and animal
labor. The three staple grains (viz., wheat, rice, and corn) have reached levels of
mechanizationof93.7,73.1,79.8%,respectively.Itisthusclearthatthefirststeps
toward modern agriculture have already been taken. People have been given this
false impression of Chinese agriculture by the literature, movies, and television
shows; of course, it is also related to the fact that people in agriculture have not
done enough to broadcast and disseminate the real picture. Therefore, in a useful
attempttodothis,itisgratifyingthatZhangYunhuahaswrittenthispopularwork,
Insights into Chinese Agriculture, in addition to conducting arduous scientific
research as a researcher at the Rural Economy Research Department in the
Development Research Center of the State Council.
Shortly before this manuscript went to press, I was invited to write a preface.
Zhang Yunhua was the first doctoral candidate that I supervised, so it is my honor
to write an introduction to his new book. To take advantage of this opportunity, I
would like to talk about three aspects.
Agriculture and Civilization
According to the definition in the Xiandai Hanyu Cidian (Modern Chinese
Dictionary),cultureis“thesumofmaterialandspiritualwealthcreatedbymankind
in the process of developing society and history.” Within the broad framework
of the concept, culture includes both production methods and lifestyles. China has
just entered the middle stages of industrialization. Its modes of production have
xi