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China’s widely watched supply-side structural reform will continue to unfold in agriculture in 2017. This reform， currently ongoing in various sectors of the country’s economy as part of its efforts to adapt to the new normal of slower growth， was reaffirmed as the focus of agricultural development in 2017 at the Central Rural Work Conference， which took place in Beijing on December 19-20， 2016.
The conference， attended by the nation’s top policymakers in rural and agricultural affairs， set out for 2017 the tasks of accelerating agricultural modernization， adjusting agricultural structure， boosting entrepreneurship and innovation， and promoting urbanization. All these aim to improve the quality and efficiency of agriculture and increase farmers’ incomes. In addition， poverty alleviation efforts will be strengthened， with a focus on improving the self-development capabilities of rural areas and their residents.
China’s reform and opening-up program， which started in the countryside in the late 1970s， liberated rural productivity. Since the drive began， however， labor has drained from rural areas， as many people from the countryside have migrated to cities. Partly for this reason， development of agriculture and rural areas has lagged behind that of urban areas.
In recent years， though， migrant workers have begun returning to their hometowns to start businesses， having gained knowledge and accumulated savings while living and working in more developed parts of China. Many of the returnees now sell agricultural produce online. Some are so attuned to information technology that they use cuttingedge big data services to select which crops to grow and animals to raise.
Such practices constitute part of the supply-side reform in agriculture. However， the reform still has far to go to solve problems such as huge fluctuations in the prices of agricultural products and rural poverty.
The Central Government is carrying out supply-side reform in other industries by destocking， cutting overcapacity， deleveraging， reducing costs and improving weak links. This is achieving substantial results and will continue in 2017.
Supply-side reform in agriculture， however， is different. It requires improving relevant systems and making the most of the roles of both the market and the government.
For instance， while upholding the collective ownership of farmland， reforms should be introduced to make it more efficient for farmers to transfer their land-use rights to others and thereby profit. In addition， rural finance should be developed by channeling more resources to rural areas in order to lower financing costs and encourage entrepreneurship.
The effectiveness of agricultural reform will significantly influence China’s future rural development.
The conference， attended by the nation’s top policymakers in rural and agricultural affairs， set out for 2017 the tasks of accelerating agricultural modernization， adjusting agricultural structure， boosting entrepreneurship and innovation， and promoting urbanization. All these aim to improve the quality and efficiency of agriculture and increase farmers’ incomes. In addition， poverty alleviation efforts will be strengthened， with a focus on improving the self-development capabilities of rural areas and their residents.
China’s reform and opening-up program， which started in the countryside in the late 1970s， liberated rural productivity. Since the drive began， however， labor has drained from rural areas， as many people from the countryside have migrated to cities. Partly for this reason， development of agriculture and rural areas has lagged behind that of urban areas.
In recent years， though， migrant workers have begun returning to their hometowns to start businesses， having gained knowledge and accumulated savings while living and working in more developed parts of China. Many of the returnees now sell agricultural produce online. Some are so attuned to information technology that they use cuttingedge big data services to select which crops to grow and animals to raise.
Such practices constitute part of the supply-side reform in agriculture. However， the reform still has far to go to solve problems such as huge fluctuations in the prices of agricultural products and rural poverty.
The Central Government is carrying out supply-side reform in other industries by destocking， cutting overcapacity， deleveraging， reducing costs and improving weak links. This is achieving substantial results and will continue in 2017.
Supply-side reform in agriculture， however， is different. It requires improving relevant systems and making the most of the roles of both the market and the government.
For instance， while upholding the collective ownership of farmland， reforms should be introduced to make it more efficient for farmers to transfer their land-use rights to others and thereby profit. In addition， rural finance should be developed by channeling more resources to rural areas in order to lower financing costs and encourage entrepreneurship.
The effectiveness of agricultural reform will significantly influence China’s future rural development.