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Hu Glacier: Market Analysis and Policy Evaluation of China's Agricultural ProductsSummary: In recent years, the overall price of China's agricultural products has remained at a relatively high level; and in the market operation of agricultural products (especially grain, cotton and other bulk agricultural products), there has been a self-contradiction of high production, high consumption, high imports, and high inventories. phenomenon. At the same time, China's agricultural policy is also facing the "floor" of higher production costs and the "ceiling" of prices. To this end, this paper first briefly combs the operation of the global and Chinese agricultural products market in the recent period, and on this basis focuses on the analysis and evaluation of the main policies of China's agricultural products market. This paper holds that the implicit condition of China's agricultural product market policy logic is that the overall level of agricultural product prices rises, and under the background of the global economic downturn and the long-term decline of agricultural product prices, the entire Chinese agricultural product market policy system will face great impact, such as price inversion, subsidy "yellow line", agricultural product smuggling and so on. Finally, focusing on the long-term development of China's agricultural production, this paper holds that the focus of policy should be to ensure agricultural production capacity and improve agricultural production efficiency, and it is meaningless to pursue the growth of output quantity. Therefore, in the future, we should establish a three-dimensional agricultural policy system, namely China's agricultural safety net, which can share agricultural risks, make independent production decisions, and comprehensively use policy tools such as monitoring, negotiation, subsidies, insurance and credit. Keywords: Agricultural products market-linked subsidies Production efficiency Agricultural safety net. Overview of Global Agricultural Products Market in 1. According to the January 2015 World Economic Outlook report, the global economic growth rate is expected to be 3.5 per cent in 2015 and 3.7 per cent in 2016, both 0.3 percentage points lower than the October 2014 World Economic Outlook forecast. The main reason is that the price of oil in US dollars has fallen by about 55% since September 2014. The decline in oil prices is partly due to unexpected demand weakness in some major economies, especially emerging market economies. There are significant differences in economic growth among major economies. Among them, the recovery of the United States economy is stronger than expected, while the economic performance of other major economies (especially Japan) fell short of expectations. The United States dollar appreciated by about 6 per cent relative to the real effective exchange rate used in the October 2014 World Economic Outlook. Conversely, the euro and the yen have depreciated by about 2 per cent and 8 per cent, respectively, and the currencies of many emerging market economies have also depreciated. Interest rates and risk spreads have risen in many emerging market economies (especially commodity exporters), and risk spreads on high-yield bonds and other commodities exposed to energy price risk have widened. Dragged down by weak global economic growth, global commodity prices have fallen rapidly, and agricultural prices have also been affected, with a sharp correction. According to the estimation of the Food Outlook of the United Nations Food and Agriculture Organization, the global agricultural production in 2014 can be simply described as follows: 2.5 billion tons of grain, including 0.7 billion tons of wheat, 1.3 billion tons of coarse grains and 0.5 billion tons of rice; The output of oil is 0.54 billion tons, cassava is 0.29 billion tons, and sugar is 0.18 billion tons. The total meat output is 0.31 billion tons, of which 0.12 billion tons are pork, accounting for 37% of the total meat output. Milk output 0.79 billion tons, the output of aquatic products is 0.17 billion tons. Global agricultural output is at an all-time high and still has strong growth potential. According to data released by the Food and Agriculture Organization of the United Nations, the global food price index was 201.8 in 2014, down 3.8 percent from the 209.8 in 2013. Although the overall decline was modest on an annual basis, on a monthly basis, the global food price index fell by 3.8 per cent from a record high in mid -2014. This means that global food prices fell rapidly in the second half of 2014 (see Figure 1). In terms of food categories, in 2014, the global grain price index was 191.9, a sharp drop of 12.5 percent from the 2013 219.3; the edible vegetable oil price index was 181.1, a drop of 6.2 percent from the 2013 193.0; the sugar price index was 241.2, a drop of 3.9 percent from the 2013 251; the dairy price index was 224.1, a drop of 7.7 percent from the 2013 242.7; the meat price index was 198.3, that's up 7.7 percent from 184.1 in 2013. On the whole, the trend of the global agricultural product price index has gradually returned to the market fundamentals after 2013, so the price has been supported to a certain extent. Except for individual agricultural products, there has not been a sharp drop like oil prices. The meat price index has risen overall. Therefore, the most critical factor affecting the global agricultural product market in 2014 comes from the loosening of the balance of supply and demand, such as: the global grain harvest has brought about a relatively loose grain market, especially the increase in corn production in the United States and China; the weak growth of China's dairy imports has led to a downturn in global dairy demand; The increase in sugar production has further exacerbated the oversupply pattern. Judging from the perspective of market fundamentals, global agricultural prices will remain low for some time. Overview of China's Agricultural Products Market in 2. According to data released by the National Bureau of Statistics, in 2014, the country's total GDP was 63646.3 billion billion yuan, a year-on-year growth rate of 7.4 percent. According to the "Economic Blue Book: Analysis and Forecast of China's Economic Situation in 2015" of the Chinese Academy of Social Sciences, China's economic growth rate will drop to 7% in 2015. The 2014 Central Economic Work Conference pointed out that China's economic development has entered a new normal and is shifting from high-speed growth to medium-to-high-speed growth. In this context, it is necessary to speed up the transformation of the mode of agricultural development, from simply pursuing quantitative growth to paying equal attention to quantity and quality, and take the road of modern agricultural development with high output efficiency, product safety, resource conservation and environment-friendly, so as to achieve sustainable agricultural growth. According to data from the National Bureau of Statistics, in 2014, the country's total grain output was 607.099 million tons, an increase of 5.16 million tons or 0.9 percent over 2013, achieving a historic "eleventh consecutive increase". Of this increase, 0.7 percentage points came from the expansion of grain sown area and 0.2 percentage points from the increase in grain yield per unit area. Under the background of relatively loose global food market and continuous domestic production increase, domestic food prices remained relatively stable in 2014. Judging from the fixed-base index 100 by 2002-2004, China's average food price index was 198.7 in 2014, up 3% from the 192.7 in 2013, and the rising trend of food prices has been curbed (see Figure 2). In December 2014, the national food price index rose 2.9 per cent year-on-year, of which the food price index rose 3 per cent, the price index of meat, poultry and products fell 0.2 per cent, the price index of eggs rose 14 per cent, the price index of aquatic products rose 2.4 per cent, the price index of fresh vegetables rose 7.2 per cent and the price index of fresh fruits rose 10.4 per cent. In terms of urban and rural areas, the national rural food price index rose 2.5 percent year-on-year, of which the food price index rose 2.8 percent, the price index of meat, poultry and products fell 0.9 percent, the price index of eggs rose 13.7 percent, the price index of aquatic products rose 2.8 percent, the price index of fresh vegetables rose 5.8 percent, and the price index of fresh fruits rose 10.6 percent, among them, the food price index rose by 3.1 per cent, the price index of meat, poultry and products was basically flat, the price index of eggs rose by 14.1 per cent, the price index of aquatic products rose by 2.3 per cent, the price index of fresh vegetables rose by 7.3 per cent, and the price index of fresh fruits rose by 10.3 per cent. From the perspective of China's agricultural product market, on the one hand, the supply is sufficient; on the other hand, the overall agricultural product price relationship has not been straightened out, and the fundamental contradiction of domestic and international agricultural product price inversion has not been alleviated. This has also led to the "destocking" of domestic agricultural products still taking some time. In addition, from a policy perspective, in 2015, China's minimum purchase prices for rice and wheat remained unchanged at the 2014 level, making the overall agricultural product price axis basically maintained at the 2014 level. On the whole, in 2015, domestic agricultural product prices, especially food prices, will continue to operate at a low level, and the main tone of the market is still the "destocking" of bulk agricultural products ". 3. Agricultural Market and Price (I) food for some time, China's grain market has been a "policy market". In 2014, the market of China's major grain varieties still maintained the consistent momentum in recent years, just like the "four high" situation of high yield, high consumption, high import and high inventory mentioned in the "Green Paper" in 2014, which brought a series of problems, such as the "ceiling" of the current agricultural subsidy ceiling and the "floor" of the increase of agricultural production cost. In fact, the policy distortion of the agricultural product market is not only reflected in the grain market, but also has penetrated into almost every variety of agricultural product market in China. Therefore, it is necessary to analyze the current systemic problems on the basis of combing the market and price of specific varieties of agricultural products. 1. Rice. According to data from the National Bureau of Statistics, in 2014, China's rice sown area was 30.31 million hectares, and the rice output was 0.206 billion tons, a slight increase from 2013. According to China Customs import and export trade statistics, in 2014, China imported 2.579 million tons of rice, an increase of 13.6 percent year-on-year; exported 419000 tons of rice, a year-on-year decrease of 12.4 percent. From the perspective of rice consumption, according to the data of the rice production and demand balance table released by the China Grain Network, in 2014, China's total consumption was 0.196 billion tons, of which 0.162 billion tons of rations, 16.6 million tons of feed grain and 13.1 million tons of industrial grain. The total domestic demand has been basically stable in recent years. It can be seen that the annual balance of rice in 2014 has increased compared with 2013. In addition, because rice smuggling has not been effectively curbed, the estimated smuggling volume in the industry is actually greater than the import volume of customs statistics. A variety of factors superimposed, in 2014, China's rice market to maintain the basic pattern of "policy market" has not changed. In terms of price operation, according to the data of China Grain Network, in 2014, rice prices rose slightly supported by the continued increase in the minimum purchase price, and the overall price level was slightly higher than the level in 2013. however, due to the slowdown in economic growth, loose market and low-cost imported rice, rice prices are generally weak. Judging from the price trend of rice throughout the year, it is generally shown as stable and strong operation from January to August, with policy auctions (hereinafter referred to as "auctions") dominating the market; from September to October, the high volatility fell, and the market was relatively loose; from November to December, the high level rose firmly, and the market was strongly supported. Specific to the two varieties of indica rice and japonica rice, although their market reactions are slightly different, this has not essentially changed the "policy market" attribute of the rice market. 2. Wheat. According to data from the National Bureau of Statistics, in 2014, China's wheat sown area was 24.06 million hectares, and the wheat yield was 0.126 billion tons, a slight increase from 2013. According to Chinese customs statistics, in 2014, China imported 3.004 million tons of wheat, a year-on-year decrease of 45.7; exported 190000 tons of wheat, a year-on-year decrease of 31.9. From the perspective of wheat consumption, according to the data of the wheat production and demand balance table released by the China Grain Network, in 2014, China's total consumption was 0.116 billion tons, of which 84 million tons of rations, 15 million tons of feed grain, and 11.75 million tons of industrial grain. The total domestic demand has been basically stable in recent years. In terms of price operation, according to the data of China Grain Network, in 2014, the domestic wheat market as a whole showed a pattern of loose supply and demand, and the wheat market price remained basically stable in the first half of the year; after the new grain was put on the market, the price was basically on the rise from June to September due to the start of the national market purchase and the reduction of grain sources in the market; in the fourth quarter, the wheat market price was stable and slightly weak at the end of the year. 3. Corn. According to data from the National Bureau of Statistics, in 2014, China's corn sown area was 37.08 million hectares, and the corn yield was 0.216 billion tons, which was slightly lower than in 2013. According to data released by the International Cooperation Department of the Ministry of Agriculture, in 2014, China imported 2.599 million tons of corn, a year-on-year decrease of 20.4; exported 20000 tons of corn, a year-on-year decrease of 74.2. From the perspective of corn consumption, according to the data of the balance sheet of production and demand released by China Grain Network, China's total consumption in 2013/2014 was 0.194 billion tons, including 13.6 million tons of rations, 0.126 billion tons of feed grain and 50 million tons of industrial grain. Relatively speaking, corn, as feed grain, is driven by the upgrading of residents' food consumption structure brought about by economic development, and maintains a basically upward market pattern in the medium and long-term trend. In terms of price operation, according to the data of China Grain Network, in 2014, the domestic corn market as a whole showed a trend of rising prices and local shocks. From January to June, under the influence of unprecedented temporary purchasing and storage, import return and temporary purchasing and storage of corn auction, the overall price of corn maintained a steady and rising trend; from July to September, the situation of periodic tension in the market did not improve, and the price of corn rose to a record high; with the successive listing of corn in the new season at the end of September and the release of temporary purchasing and storage of grain, coupled with the sluggish demand for feed, the tight market gradually eased; after October, the depressed state of the corn market has not been reversed, and the purchase price is generally high and then low. In November, affected by the overall economic environment, corn prices fluctuated and declined. In December, the market weakness became clearer. Although the corn market is supported by growth demand to a certain extent, in the short term, it is still affected by the overall economic environment. 4. Other. In 2014, the strengthening of domestic corn prices, coupled with the decline in corn imports due to problems such as import returns, directly led to China's imports of 5.413 million tons of barley, an increase of 131.8 percent over the same period last year; in the same period, China imported 5.776 million tons of sorghum, an increase of 4.4 times over the same period last year. According to the current observation, with the further improvement of the income level of urban and rural residents, the consumption of animal food will further increase, and the domestic feed demand can still get strong support for a period of time. In this case, the intervention of corn import and domestic market will inevitably lead to the growth of demand for corn substitute products. In 2013, the domestic breeding industry replaced corn with wheat and 2014 with sorghum instead of corn as feed, which are all examples. In the short term in the future, if the current domestic corn market policy thinking continues, due to the inversion of domestic and foreign prices, and the management of coarse grain imports is not strict, then the alternative imports of other coarse grains will still be inevitable, to a certain extent It will further increase, which may further deteriorate the domestic feed grain market. (II) edible oil seed and edible vegetable oil in 2013/2014, domestic soybean production was about 12 million tons, rapeseed production was about 9.5 million tons, and peanut production was about 14 million tons. In 2014, China imported 77.518 million tons of edible oil seeds, up 14.3 percent year-on-year, and exported 872000 tons, up 0.3 percent year-on-year. Among them, soybean imports 71.399 million tons, an increase of 12.7; rapeseed imports 5.081 million tons, an increase of 38.7. According to data from the National Grain and Oil Information Center, China's edible oil production was 25.056 million tons in 2013/2014, an increase of 5.7 percent over the same period last year. Among them, the output of soybean oil, rapeseed oil and peanut oil was 12.32 million tons, 6.377 million tons and 2.52 million tons respectively, up 6.6 percent, 8.5 percent and 2.8 percent respectively. In 2014, China imported 7.873 million tons of edible vegetable oil, a decrease of 14.6 percent. Among them, palm oil imports were 5.324 million tons, a year-on-year decrease of 11.0; soybean oil imports were 1.135 million tons, a year-on-year decrease of 1.9; rapeseed oil imports were 810000 tons, a year-on-year decrease of 47.0. However, the increase in imports of oilseeds such as soybeans, discounted at the oil yield, is sufficient to compensate for the reduction in imported oil and fat. Due to the weakening of the holiday effect of edible oil consumption and the reduction of terminal consumption demand, the supply of edible vegetable oil in China exceeded the demand in 2013/2014, with a balance of 2.226 million tons. In terms of price operation, in 2014, the domestic edible vegetable oil market was affected by the overall economic environment, and the overall operation was weak. The prices of major domestic vegetable oils, driven by the sharp drop in international edible vegetable oil prices, hit a new low during the year. Domestic well-known edible vegetable oil processing companies have lowered the prices of small packaged oil in order to expand market share. For example, in December 2014, the price of 5-liter bottled soybean oil in the city was 10 yuan per liter, down 11% from 11.2 yuan in the same period in 2013. Coupled with the domestic oil market downturn, making the edible vegetable oil market situation more severe. In general, in the context of the global economic downturn and the loose edible oil seed and edible vegetable oil market, domestic edible vegetable oil prices will remain low in 2015, and the momentum for its recovery has not been shown. (III) livestock products according to data from the National Bureau of Statistics, in 2014, China's pig, beef, sheep and poultry production was 85.4 million tons, an increase of 2.0 percent over the previous year. Among them, pork production was 56.71 million tons, up 3.2 percent year on year. In 2014, China produced 28.94 million tons of poultry eggs, up 0.6 percent year-on-year, and 37.25 million tons of milk, up 5.5 percent year-on-year. According to customs statistics, in 2014, China's imports of livestock products totaled US $22.17 billion billion, up 13.6 percent year-on-year; exports totaled US $6.84 billion billion, up 5.0 percent year-on-year. Among them, pork imports were 564000 tons, a year-on-year decrease of 3.3 percent; beef imports were 298000 tons, a year-on-year increase of 1.3 percent; mutton imports were 283000 tons, a year-on-year increase of 9.3 percent; poultry imports were 472000 tons, a year-on-year decrease of 20.4 percent; milk powder imports were 1.054 million tons, a year-on-year increase of 22.0 percent. Since China became the world's largest importer of agricultural products in 2011, informal trade such as agricultural products smuggling has been expanding. The smuggling of rice, pork, beef, poultry and other livestock products has been high. According to industry experience, the current smuggling of livestock products is roughly the same as the import volume of customs statistics. In fact, in recent years, the number of livestock products from abroad in the Chinese market has been increasing rapidly, and there is a big difference between the actual situation and customs statistics. In terms of price operation, according to the price monitoring data of the Market and Information Department of the Ministry of Agriculture, the average price of pork in 2014 was 22.5 yuan per kilogram, down 7.6 from the average price of 24.3 yuan in 2013 (see Figure 3). In 2014, beef and mutton prices remained relatively stable, while egg and milk prices hit record highs. Among them, the average price of eggs was 10.8 yuan per kilogram, up 9.4 percent from the average price of 9.9 yuan in 2013, and the purchase price of milk was 4.05 yuan per kilogram, up 11.9 percent from the average price of 3.62 yuan in 2013. In addition to eggs, the prices of major livestock products showed a gradual weakening process in 2014, which is also consistent with the trend of the entire economy. (IV) sugar and cotton in the 2013/2014 sugar squeezing season, the country's total sugar output was 13.32 million tons; the consumption was 15.6 million tons; the total annual import volume was 3.486 million tons, a year-on-year decrease of 23.3; the final inventory reached 2.996 million tons, the highest level in history. Generally speaking, the domestic sugar demand is relatively stable, and the domestic sugar market is under strong pressure from the international market. In the context of the continued downturn in global commodity prices in 2014, domestic sugar prices also showed a downward trend in 2014, with the average price falling by 17.4 from 5385 yuan/ton at the beginning of the year to 4448 yuan/ton at the end of the year. Judging from the current situation of the international and domestic sugar market, although some analysts believe that there is an expectation of production reduction in the new squeeze season, considering that the current domestic sugar inventory is still at a historical high, the task of "destocking" in the market is still very arduous. Therefore, it is difficult for the domestic sugar market to obtain strong support in the 2014/2015 squeeze season, and the market is still dominated by a negative atmosphere. According to data from the National Bureau of Statistics, in 2014, the national cotton sown area was 4.219 million hectares, a decrease of 127000 hectares or 2.9 percent from 2013. The output was 6.161 million tons, a decrease of 138000 tons or 2.2 percent from 2013. According to China's cotton market data on the U.S. Department of Agriculture's cotton production and demand balance table, China's cotton consumption is expected to be 7.95 million tons in 2014/2015, which is generally stable. For the whole of 2014, China imported 2.669 million tons of cotton, a year-on-year decrease of 40.7; cotton yarn imports were 2.01 million tons, a year-on-year decrease of 4.2. China's final cotton inventory in 2014/2015 was 13.75 million tons, accounting for 58% of the total global inventory of 23.65 million tons. From the perspective of price operation, due to the launch of the cotton target price reform pilot in Xinjiang in 2014, the price of reserve cotton was lowered, and the global cotton market was sluggish. In 2014, China's cotton prices showed a step-by-step decline. According to the China Cotton Price Index, in December 2014, the average price of 3128B cotton was 13743 yuan/ton, down 41.5 from 19447 yuan/ton at the beginning of the year. Brief Summary of (V) overall, in 2014, domestic agricultural prices overall downturn. According to the current situation, it is expected that in 2015, the domestic agricultural product market will remain low on the whole. Among them, the low price of international bulk commodities, especially agricultural products, is an important reason. In addition, the more fatal problem of the domestic agricultural product market is that due to the long-term dependence on policies, serious basic price distortions and inefficient financial subsidies have been formed. With more and more, huge inventories are becoming more and more difficult to maintain. The entire policy and market space are in a dilemma, making the road of "destocking" in the domestic agricultural product market increasingly difficult. To this end, it is necessary to re-evaluate the current domestic agricultural market policy. Evaluation on Main Policies of 4. Agricultural Products Market For a period of time, on the one hand, in order to maintain the stability of the domestic agricultural product market, the finance needs to pay a large amount of agricultural product storage, purchase loan interest and other expenses; on the other hand, under the background of the inversion of international and domestic agricultural product prices, the cost of domestic agricultural product processing enterprises has increased and their competitiveness Decline, and smuggling has been repeatedly banned. It can be considered that the two policies of minimum grain purchase price and temporary purchase and storage are no longer in line with the needs of the current agricultural product market development to a large extent. Therefore, in 2014, the Chinese government launched a pilot reform of the target price of soybeans in Northeast China and cotton in Xinjiang, hoping to straighten out the price formation mechanism of agricultural products through the target price and achieve the goal of stable production. In fact, whether it is the minimum purchase price, temporary purchase and storage or target price subsidies, they are all price stimulus-oriented and linked subsidies for specific agricultural products. Regardless of whether the current linked subsidy expenditure touches the "yellow box" ceiling in the WTO agricultural agreement, it is also necessary to reflect and re-evaluate the current agricultural product market policy from the aspects of policy objectives and policy effects. Whether it is the decision of the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China to "make the market mechanism play a decisive role in the allocation of resources", or the "No. 1 Document" of the Central Committee in 2015 pointed out that "to improve the price formation mechanism of agricultural products and increase farmers' income, it is necessary to maintain agricultural products." Reasonable price level "actually implicitly expresses concerns about traditional agricultural product price support policies such as minimum purchase prices,, due to a variety of factors, such as policy continuity, it is not stated. Therefore, in 2015, the central "No. 1 document" proposed to "summarize the Xinjiang cotton, northeast and Inner Mongolia soybean target price reform pilot experience, improve the subsidy mode, reduce operating costs, to ensure that the subsidy funds in full and timely cash to farmers. Actively carry out agricultural product price insurance pilot. Reasonably determine the grain, cotton, sugar, meat and other important agricultural products reserve scale". This also shows that from the policy decision-making level, the central government has intended to make new attempts. 1. Policy objectives. There is no doubt that the minimum purchase price and the temporary purchase and storage policy are essentially price support for rice, wheat, corn, soybeans, rapeseed, sugar, and cotton. Taking the minimum purchase price as an example, the basic policy idea is: when the market price is higher than the minimum purchase price, the market will spontaneously adjust supply and demand; when the market price is lower than the minimum purchase price, the China National Grain Reserve Management Corporation will follow the minimum Purchase at the purchase price to ensure the interests of grain farmers. The goal of this policy is to provide a foundation for market risks and ensure farmers' income from growing grain, so as to achieve stable and increased grain production. From an objective point of view, this policy goal has been achieved, but it is accompanied by continuous inventory growth, long-term domestic and foreign price inversion, and distortions in the basic price of agricultural products, and these problems are difficult to eliminate in a short period of time. The key problem of the minimum purchase price policy is to disrupt the production order of grain and other staple crops through asymmetric price support policies, so as to achieve the goal of stabilizing grain production. Of course, temporary purchasing and storage also has a part of the policy meaning of ex post relief, but its essence is the same as the minimum purchase price policy, that is, to reduce market risk through policy support and ensure the stability of grain income. According to the 2014 "National Agricultural Product Cost and Income Data Compilation" data, since 2008, the average net income per mu of China's three major food crops was the lowest in 2013, at 72.9 yuan, and the highest in 2011, at 250.8 yuan, with an average of 200 yuan. Therefore, it can be argued that the minimum grain purchase price policy guarantees farmers' income. However, the problem is that in the long run, the overall resource allocation efficiency of China's agriculture will become lower and lower. Under the pressure of long-term downward food prices, the minimum purchase price policy will eventually end when the government cannot afford subsidies. There is no doubt that for China, there is nothing wrong with stabilizing grain production and ensuring farmers' income from growing grain, but the overall policy goal of agriculture actually needs to include improving agricultural production efficiency. The household contract management system actually achieves efficiency improvement through the transfer of rights, and the current price market reform should be to let the risk mechanism force the optimization of agricultural production decision-making, so as to improve the efficiency of agricultural production. Without a risk mechanism, there can be no market-oriented reform, and it must not be the way of market economy to win or lose. 2. Policy logic. The policy logic and derivation of the minimum purchase price and temporary purchase and storage can be summarized as follows: when the market price is higher than the minimum purchase price, the market mechanism works; When the market price is lower than the minimum purchase price, the government starts the minimum purchase price and earns through the inventory mechanism, and then realizes the favorable price sales through the inter-period balance mechanism. When the market price is lower than the minimum purchase price, the income through the inventory mechanism can not realize the favorable price sales, when the market price is lower than the minimum purchase price, the income through the inventory mechanism, if the inter-period balancing mechanism can not achieve the price sales, and can not use the market dominance to achieve the price sales, then further expand the inventory. So cycle back and forth. This policy logic is basically effective for a period of time, at least from 2004 to 2011, and has been affirmed by many parties; since 2012, the policy has been controversial in China. In fact, the implicit background of this logic is the rise of the axis of the overall price of agricultural products. In short, when food prices fall in individual years, it only needs to increase a part of the inventory and take time to achieve the inventory return to the set level; however, the long-term deep decline in food prices will make the inventory higher and higher, which will bring New threats, that is, when food stocks increase, the huge scale not only threatens the stability of the agricultural product market, but also poses a threat to the entire agricultural production and agricultural product consumption system. For example, when the scale of rice and wheat stocks continues to expand, the demand for rice and wheat remains stable, so that the incremental part forms new stocks. The excessive production of grain has squeezed the production resources of other agricultural products, which makes the output of other agricultural products relatively decline, and brings about the unreasonable allocation of the whole agricultural production resources. This irrational allocation of resources will also threaten China's food security with changes in the dietary structure of the population, meaning: in the consumption structure, the production of cereals with decreasing demand is increasing, while the supply of food such as meat, eggs and milk, which is in increasing demand, is insufficient, eventually leading to a passive import situation in China in which food has to be imported due to the inversion of domestic and foreign prices and meat, eggs and milk have to be imported due to insufficient supply. 3. Policy effects: the case of cotton. According to the description of the 2013 "Green Paper", on September 10, 2012, China Cotton Reserve Management Corporation (hereinafter referred to as "China Cotton Reserve") launched the 2012 temporary cotton purchasing and storage plan. Standard grade 328 lint cotton was purchased and stored at a price of 20400 yuan/ton. As of January 25, 2013, China Cotton Reserve had purchased and stored 5.951 million tons of cotton, about 80% of the cotton output this year. If these cotton are stored for one year, the central government will only purchase loan interest subsidies will reach 3.4 billion yuan. In 2013, China Cotton Storage collected and stored 6.58 million tons of cotton (including 4.28 million tons in Xinjiang) at the price of 20400 yuan/ton. Further, as the government launched the Xinjiang cotton target price reform pilot in 2014, on April 1, 2014, the reserve cotton bidding price was adjusted to 17250 yuan/ton. According to the China Cotton Information Network, by the end of August 2014, a total of 2.645 million tons of cotton reserves had been sold in 2013. Apart from storage fees and interest discounts, the actual price difference loss paid by the finance was 8.3 billion yuan. According to the 12.57 million agricultural population in Xinjiang, the price difference loss of this part of cotton reserves alone was equivalent to 663 yuan per agricultural population. Xinjiang's cotton planting area accounts for 1/3 of Xinjiang's total crop planting area. If the number of cotton farmers is calculated according to this, then, this part of the subsidy is equivalent to 2000 yuan per cotton farmer. If calculated according to the total financial loss and cost, it may cost more. However, the actual subsidies received by farmers are not so much, here part of the financial costs and losses are "unnecessary losses", that is, no one benefits from it, does not belong to the concept of redistribution of wealth, these losses belong to the resource mismatch brought about by the loss of efficiency. The cotton market is a more typical case. The rice, wheat, corn, soybean, sugar, and rapeseed markets are roughly the same, but the situation is not as extreme as the cotton market. It is understandable that in the process of policy and market gambling, policy has won the goal in the short term and lost efficiency in the long term, which is not sustainable. To this end, the government launched the Xinjiang cotton target price reform pilot, which triggered the price support "yellow box" subsidy "yellow line". According to the specific operation, from top to bottom: if the "total plate" of the financial budget required for the target price is determined, then the target price will eventually evolve into a "new direct subsidy" decomposed according to the summary data; If the "total plate" of the financial budget required for the target price is not determined and implemented according to the ideal plan, has the finance made corresponding preparations in the continuous downturn of the market, for example, dealing with the market's overshoot is crucial. The former is actually a "green box" in a sense, but it has been "yellow boxed" by itself; the latter is a test of fiscal efficiency and financial strength. In short, in the agricultural market in the context of the continued downturn, the old and new policies are inadequate. 5. 2015 Trend Judgment and Policy Thinking (I) 2015 trend judgment in 2015, both the new global economic situation and the new normal of China's economy actually included the concept of structural upgrading, that is, traditional industries and markets were basically stable, and emerging formats and demand gradually emerged. In this process, it is difficult for commodity prices to obtain effective support and will remain depressed for some time to come. From the domestic situation, with the further improvement of the income level of urban and rural residents, the total demand for agricultural products will further increase, but the demand structure will undergo new adjustments. In the short term, due to the downturn in the global commodity market, especially agricultural products, and the high domestic stocks of grain, cotton, and sugar, the negative atmosphere in the market will remain for some time. (II) policy thinking an important contradiction in the current domestic agricultural product market is the structural imbalance between supply and demand. From the point of view of rations, rice and wheat have been increasing for many years and stocks are high, while the consumption of rice and wheat rations has reached its peak. At this time, it is meaningless to further increase the production of rations. As mentioned earlier, this increase in production also leads to inefficiencies in the allocation of resources, leading to competitive demand for resources in the production of other agricultural products, which in turn raises the cost of agricultural production. At present, there are two reasons for the increase of agricultural production cost in China: the efficiency imbalance between industries. The industrial sector has higher labor productivity, thus providing a more competitive wage rate, while the increase in production costs in the agricultural sector is only a concrete manifestation of relatively low production efficiency and is the inevitable result of the economic system under the role of the market. The resource allocation of agriculture itself is inefficient. There is a natural mismatch between natural resources, labor, and capital. The allocation of agricultural resources should have been optimized through the decentralized decision-making and risk mechanism of the market economy. "You have to tie the bell to untie the bell". The root of a series of problems in the current agricultural product market is technical problems at the level of productivity, and policy problems at the level of production relations. Whether it is the "floor" of costs or the "yellow line" of subsidies, even if it cannot be solved at the same time, at least one of the dilemmas can be solved through policy adjustments. Policy ideas can include: 1. The decoupling of linked subsidies. Theoretically, a linked subsidy for the production of any one agricultural product would involve discrimination against the production of other agricultural products. There is nothing wrong with adopting linked subsidies under specific conditions to achieve specific policy objectives, but in the long run, there will be many specific problems: minor problems, such as linked subsidies for specific agricultural products, lead to the failure of normal crop rotation, farmers continue to use chemical fertilizers and pesticides in order to obtain higher returns, making it difficult for agricultural ecology to recover naturally; Major problems such as the market distortion mentioned above. "Grain is basically self-sufficient, and rations are absolutely safe" in a sense emphasizes not the amount of output, but the strength of production capacity, maintaining a certain level of inventory, maintaining a strong production capacity, so that food production can be stable and sustainable. In this context, the "No. 1 Document" of the Central Committee in 2015 proposed to "continuously enhance food production capacity", which expresses this meaning. Therefore, linked subsidies will touch the "yellow line" of subsidies externally, while reducing the efficiency of resource allocation internally, and should gradually "decouple" linked subsidies ". Considering the weakness of agriculture and the differences in productivity between industries, the focus of subsidies can be shifted to income subsidies. There is a fear that after the decoupling of subsidies, agricultural production, especially food production, will fall sharply. Maybe in the short term, but not in the medium to long term. Due to the advancement of urbanization and industrialization, large-scale agricultural operations are an inevitable trend. From the perspective of agricultural production, farmers must still give priority to land-intensive food crops in field planting. This endogenous mechanism determines the withdrawal of linked subsidies. The decline in grain production is limited, and this limited decline is a necessary prerequisite for straightening out the current agricultural product price formation mechanism. 2. The construction of China's agricultural safety net. The "decoupling" of linked subsidies is not the government's evasion of responsibility, so that agricultural producers are exposed to complete market risk, but to build a new type of agricultural market risk sharing mechanism. The minimum purchase price and temporary purchasing and storage will eventually transfer the market risk to the government level, which has played a great role under certain conditions, but it is not a long-term mechanism. In the long run, it is necessary to build a systematic agricultural policy system such as China's agricultural safety net. From a strategic point of view, China's agricultural safety net should proceed from the needs of agricultural risk management, be market-oriented, and aim to ensure the income of agricultural producers, and build a clear, focused, and coordinated agricultural support policy system. From an operational point of view, we can learn from the experience of the American agricultural safety net, and fully consider the specific conditions of China's agriculture, comprehensively use the monitoring system, negotiation strategies, income subsidies, insurance and credit and other policy tools to actively and steadily promote the formulation and implementation of relevant policies to provide comprehensive and multi-level three-dimensional safety net protection for agriculture. In any case, the focus of all policies should be to ensure agricultural production capacity and improve agricultural production efficiency. It is meaningless to simply pursue the growth of output quantity. Through the construction of China's agricultural safety net, the prevention and control and compensation mechanism of agricultural natural risks and the sharing mechanism of market risks are established, and the final decision-making power of agricultural production is returned to farmers. China's agriculture has gone through thousands of years of development, and it is impossible to have collective irrationality brought about by individual rationality at the production level. However, the spider web operation of the agricultural product market is not a problem that can be solved through policies. The premise of "better play the role of the government" is to clarify where the policy will end. 6. epilogue on the whole, China's agricultural product market will remain weak for some time to come, which will expose current policy problems. To solve these problems, it is necessary to adjust and revise China's agricultural product market policy. From the perspective of system and operation, the idea of policy adjustment should be that the policy tends to be "green boxed" and simplified. From a practical point of view, in the face of the dilemma of the "floor" of increasing domestic agricultural production costs and the "yellow line" of subsidies, it is impossible to solve these two problems at the same time at this stage. Therefore, to solve one of the problems through policy adjustment is progress, which is also in line with China's consistent strategy of gradual reform. After the promulgation of the US "farm bill" in 2014, the "yellow box" subsidy in the United States has dropped to a very low level. The factors that promote this change may come from the pressure of WTO agricultural negotiations, but more from the pressure of domestic agriculture itself. For China, the "green box" of agricultural market policy is more from the pressure of domestic agriculture itself, which is consistent with the United States. From the operational level, the agricultural product price policy has a tendency to become increasingly complex. Whether in theory or in practice, complex policies will inevitably bring greater technical losses, and the bias in implementation is even more difficult to estimate. Therefore, China's agricultural product market policy must be extremely simple, similar to direct subsidies for grain production. It is believed that through the dynamic adjustment and revision of policies, China's agricultural production efficiency will make greater progress in the future. Source: China's Rural Economy, Issue 4, 2015 | Editor: Zhai Tianchang
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Fight the battle of food security under the new situationDecember 25, 2014 09:57:46 source: Xinhua Daily Telegraph Author: Special Commentator the just-concluded Central Rural Work Conference emphasized that to promote agricultural modernization, we must insist on ensuring national food security as the primary task, ensuring basic self-sufficiency in grain and absolute safety of rations. At present, China's economic development has entered a new normal, and agricultural development has also entered a new historical stage in which it is urgent to change the mode of development. Although China's grain has achieved "11 consecutive increases", it must be noted that the foundation of food security is not stable: on the one hand, the cost of domestic agricultural production continues to rise, while the price of agricultural products is weak, resulting in the continuous decline of agricultural comparative efficiency, while the decline in the price of bulk agricultural products in the international market leads to the continuous increase of imports, and the cost "floor" and price "ceiling" seriously affect farmers' enthusiasm for growing grain. On the other hand, China's agricultural ecological environment is seriously damaged, the use of cultivated land and water resources is becoming increasingly tense, and grain production has encountered two "tightening curses" of ecological resources. The pressure of sustainable grain production is unprecedented, and it is becoming more and more difficult to ensure food security. The people take food as their heaven, and the country takes food as the first. Under the current situation that economic growth has slowed down and economic development has entered a new normal, food security is more related to the healthy development of the economy, the harmony and stability of the society, and the improvement of people's livelihood. We must always tighten food security. Strings, fight the battle of national food security. It is fundamental to fight the battle of food security and accelerate the transformation of agricultural development mode. We should take reform as the driving force to realize the fundamental transformation from traditional agriculture to modern agriculture. It is necessary to promote the transformation of grain production from focusing on quantity growth to total balance, structural optimization, and quality and safety; promote the transformation of agricultural development from mainly relying on resource consumption to resource-saving and environment-friendly; promote the transformation of agricultural production conditions from mainly "relying on the sky for food" To improve the level of material technology and equipment; promote the transformation of agricultural producers from traditional farmers to high-quality professional farmers, take the modern agricultural development road of high efficiency, product safety, resource conservation and environment-friendly. To fight the battle of food security, strategically, we must adhere to the national food security strategy of focusing on ourselves, based on the country, ensuring production capacity, moderate imports, and scientific and technological support, and focus on ensuring basic self-sufficiency in grains and absolute food rations. Grasp and do a good job, so that the Chinese people's rice bowls are firmly in their own hands at all times, and always grasp the initiative of food security in a complex and changeable situation. To do a good job in food security, we must strictly abide by the red line of cultivated land. Farmers can be "non-agriculturalized", and arable land must not be "non-agriculturalized"; the delineation of permanent basic farmland is the basic guarantee for ensuring production capacity. It must be in accordance with laws and regulations to enable farmers to "have land to grow" and promote "good grain"; The construction of high-standard farmland with drought and flood protection is the key way to ensure production capacity. Comprehensive agricultural development and land improvement must be strengthened to comprehensively improve the quality and land output. To do a good job in the battle of food security, we must adhere to the connotative development path of relying on scientific and technological progress and increasing yield per unit area, speed up the selection and application of a number of new varieties suitable for local characteristics, high yield, high quality and strong stress resistance, and give agriculture and grain the wings of science and technology. We will speed up the whole process of mechanization of grain production, vigorously promote the deep loosening and soil preparation of agricultural machinery, and further give full play to the carrier role of agricultural machinery in promoting grain through science and technology. To fight the battle of food security, we must do everything possible to increase the enthusiasm of farmers in growing grain. We should continue to adhere to the principle of market pricing and improve the grain price formation mechanism. On the premise of protecting the interests of farmers, we should promote the policy of minimum purchase price, temporary purchase and storage and agricultural subsidy to gradually change to the target price system of agricultural products. We will improve the way of subsidies, improve the accuracy and directivity of subsidies, and establish a mechanism linking agricultural subsidies with grain production of "who plants and who makes up for it" and "many kinds of subsidies. We will speed up the improvement of the interest compensation mechanism in the main producing areas, continue to increase incentives for major grain-producing counties, and mobilize the enthusiasm of production in the main producing areas. To do a good job in food security, we must also speed up the innovation of agricultural management system. Speeding up the cultivation of new agricultural management entities and innovating the agricultural management system are the countermeasures to solve the problem of "who will grow grain" and develop modern agriculture. It is necessary to develop moderate-scale operations, support the development of large grain growers, family farms, farmer cooperatives, leading agricultural industrialization enterprises and social service organizations, and actively cultivate new agricultural business entities. It is necessary to explore the establishment of a new agricultural management system based on household contracting, with farmers as the core subject, new agricultural management entities, land stock cooperatives, agricultural socialized service organizations and other diversified entities to jointly operate, and promote the specialization, scale and scale of agricultural management. Organization and enhance the sustainable development of food production. To do a good job in food security, we must also make overall use of both international and domestic markets and resources. Appropriately increasing imports and speeding up the going out of agriculture is an inevitable choice to ensure food security and ensure the effective supply of important food varieties. Through moderate imports, we should do a good job in adjusting the surplus and shortage of varieties, meet diversified consumer demand, and reduce the pressure on domestic resources and environment. We should explore the implementation of the global agricultural strategy and establish a safe, stable and sustainable global agricultural supply network. It is necessary to grasp the scale and rhythm of imports, and prevent a large number of imports of individual varieties from impacting domestic production and adversely affecting farmers' income. xinhua news agency, beijing, December 24th, by wire
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Hu Glacier: Russian Agriculture from Putin's CountersystemRussian Agriculture and Related Effects from Putin's Counter-system hu Glacier (Institute of Rural Development, Chinese Academy of Social Sciences) when I got up in the morning and heard the radio saying, "Putin ordered a counterattack: banning the import of agricultural products and raw materials from sanctioning countries", the first reaction at that time was very surprised. In the following news, it was mentioned that "Putin also ordered the government to prevent rapid increases in the prices of agricultural products and food, and instructed the government, together with product manufacturers and retailers, to take joint measures to increase the supply of domestic goods. Leaving aside emotional factors and other issues, we can objectively analyze the effects of this counter-policy. On the surface, this news is a countermeasure against Western sanctions against Russia, and it is a straightforward political statement; but, in essence, it also contains an idea that Russia hopes to improve domestic agricultural production capacity by trade protection. Further progress has exposed the profound problems in Russian agriculture, which is why there are such sayings as "the import of agricultural products, raw materials and food from countries that impose sanctions on Russia will be banned within a year" and "to prevent rapid price increases. Therefore, such a political statement itself lacks confidence. Looking at Russian agriculture from the perspective of a Chinese agricultural researcher, I always feel a little awkward. The specific differences are:(1) Russia's agricultural production has changed so much that it is emotionally unacceptable. For example, Russia's grain output in 2011 was 94 million tons, but plummeted to 71 million tons in 2012. This figure is just a microcosm of the sharp fluctuations in Russian agriculture. In addition, the same is true of animal husbandry, where there are not only natural and market risks in agriculture, but also profound organizational and institutional problems, which will not be discussed here;(2) the trend of agricultural imports in Russia is increasing, but the instability of output leads to the instability of trade. This is also in line with Russia's national personality. In the Soviet Union, there was a famous "harvest illusion" and the United States was not shallow. Specifically, from the perspective of the sanctions measures themselves, although Russia has a vast territory and abundant resources, due to a series of problems including historical reasons, in addition to the self-sufficiency of grains, many livestock products, sugar, vegetables and other just-needed foods are still imported from the international market. Judging from the distribution of import source countries, the source countries of sugar are relatively rich, but livestock products, the main reason is that the imports of chicken and pork come from "countries that impose sanctions on Russia". Specifically, they are mainly affected by Germany, France, the Netherlands, Spain, the United States, and Ukraine. Vegetable imports mainly come from Eastern Europe, and the most important is Ukraine. Table Some sources of agricultural imports in Russia Items (ton) Meat, chicken Meat, chicken, canned Meat, pig Meat, pork Sugar confectionery Sugar refined France 16602 6894 20959 14240 328 9609 Germany 23665 4976 18402 92761 3978 1670 Netherlands 1128 182 6183 6207 2486 7 Spain 12 10106 41821 782 0 Ukraine 5240 4 2568 9662 37514 1 United States 253319 0 14501 45179 1362 397 source: FAO further, the specific effects of sanctions must be compared in relation to imports and domestic production: chicken in 2011, Russia imported a total of about 400000 tons of chicken, about 300000 tons from "countries imposing sanctions on Russia", accounting for about 75%. In the same year, Russia's chicken production was about 3 million tons, and it showed an annual increase. At the same time, due to the loss of chicken raising in 2011, the industry's call for the government to protect the domestic industry is also very high. From this perspective, Russia's restrictions on chicken imports will objectively lead to an increase in domestic chicken prices. After all, the supply of potential import losses accounts for 10% of domestic production, but it will promote the development of the domestic chicken industry. In addition, due to the high feed economy of chicken itself, the short breeding cycle and the wide range of feed substitution, under the condition of sufficient food supply in Russia, this policy will promote the expansion of the scale of domestic chicken breeding and the increase of the proportion of chicken consumption. In addition, from the perspective of chicken exporters such as the United States, the annual output of chicken in the United States is about 17 million tons, of which 3 million tons are exported to Russia, accounting for 250000 tons, accounting for 8%. At the same time, the proportion of German and French chicken exports to Russia is not high. In addition, there is a large space for adjustment of chicken production, so the effect of sanctions on chicken exporting countries is actually very limited. Combined with the above, from the perspective of chicken trade, the essence of sanctions is not very significant, both sides have their own gains and losses, but through this measure to achieve Russia's inherent goal of promoting the development of the chicken industry. Pork in 2011, Russia imported about 500000 tons of pork, most of which were imported from the European Union. In the same year, domestic production was about 2.4 million tons, and imports accounted for more than 20% of domestic production. From the perspective of rival countries, Denmark and Germany's pork exports to Russia account for about 10% of their own exports. Due to the long production cycle of pork and the relatively large investment, it will have a greater impact on the exporting country, and it will also have a great impact on the price of pork in Russia. After all, the investment and production cycle of pig breeding are not the same as chicken production. This sanction will have a great impact on the major pork exporting countries of Russia and the European Union, but it will have no impact on the United States. Does China have enough pork to fill the gap in the Russian market? This is a thought-provoking question. From a political point of view, the export of 500000 tons of pork to Russia is a fraction of the domestic output of about 55 million tons. However, from the perspective of market practice, China's pork production accounts for half of the world, but it still needs to import pork products including pig water from overseas. The domestic pork market is actually relatively tight, and the consumption elasticity of pork is very small, little changes in the market balance will bring about large fluctuations in domestic market prices, so from the economic level, China has no chance of this. Sugar, vegetables and others in 2011, Russia imported a total of 2.33 million tons of sugar, and the sources of sugar are scattered, including Southeast Asia, South America and other parts of the world. Therefore, restricting EU sugar imports will not bring risks to Russia's sugar safety. At the same time, Russia's domestic sugar beet production is also showing a rising trend. On the other hand, the European Union and the United States are neither the main exporters of sugar, nor export a large amount of sugar to Russia. However, half of Ukraine's candy is exported to Russia. From this point of view, this sanctions measure is mainly aimed at Ukraine, and it is estimated that the effect will be very significant. Although the import volume of vegetables is large, the effect of sanctions is relatively small due to the low value of the goods, which will not be discussed here. As to whether China has the opportunity to increase sugar exports to Russia, the answer is still no! Because the current domestic and international market sugar prices are seriously upside down, domestic sugar prices are much higher than the international market prices, in addition to political exports, market spontaneous factors have no incentive to promote China's sugar and sugar exports to Russia. Brief Summary judging from Russia's countermeasures, political statements are actually greater than economic interests. Although it will boost the enthusiasm of the Russian planting and breeding industry in the short term, due to the lack of a long-term mechanism, this policy cannot form an effective incentive for the domestic industry, which makes Russian agriculture fall into the normal state of large fluctuations. The price of meat in Russia will show a more obvious rise in the short term, especially pork, which will affect the well-being of domestic residents. At the same time, this issue will not change because of the oath of political slogans. However, it will also have a greater impact on EU pork exports, which is bound to cause dissatisfaction among some EU agricultural producers. The United States is least affected by the sanctions. After all, the agricultural trade relationship between the United States and Russia is chicken, which is the least affected agricultural product; while Ukraine is the most affected, one is because Ukraine is a traditional agricultural product exporter, and it is also an effect. The room and depth of adjustment are relatively limited, so the main target of the sanctions policy is Ukraine. In this round of game, the potential profit of Chinese agriculture may be small, and the probability of direct trade profit is smaller. It can potentially directly participate in Russian agriculture through agricultural going out. However, in this process, we should consider a series of risks such as Russia's politics, law and policy. I advocate that we should be extra cautious in Russian agricultural investment.
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Weng Ming: Enlightenment of Rural Administration and System Construction in South KoreaIn November 2012, Weng Ming, a member of the Association and a researcher from the Institute of Rural Development of the Chinese Academy of Social Sciences, visited Qiming University in North Gyeongsang Province, South Korea. During the visit, he visited administrative agencies at all levels and wrote this article on the basis of the visit. This article was published in Contemporary Korea, No. 1, 2013.DOC
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Jiang Changyun, so Zhang Li: the development of American corporate farms and enlightenment.Vice President Jiang Changyun and Dr. Zhang Lidong of Rural Development Institute of Jiangsu Academy of Social Sciences jointly wrote the paper "Development and Enlightenment of American Corporate Farms", which was published in World Agriculture, No. 4, 2014. The original text is attached.DOC
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Jiang Changyun, Li Xiange, Dong Huan: Changes in grain self-sufficiency rates in Japan and Korea and their implicationsVice President Jiang Changyun, together with Li Xiange and Dong Huan, published a paper entitled "Changes and Implications of Grain Self-sufficiency in Japan and Korea. Due to the long length of the original text, the relevant content is published in two parts in the first issue of "Agricultural Economic Issues" in 2014 and the third issue of "Macroeconomic Research" in 2014. The appendix is the original text.DOC
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Du Zhixiong and Wang Xinzhi: Theoretical Thinking on the Reform of China's Agricultural Basic Management SystemDu Zhixiong and Wang Xinzhi: Theoretical Thinking on the Reform of China's Agricultural Basic Management System april 15, 2014 10:33 Source: Theoretical Discussion, No.4, 2013 [Summary] Adhere to and improve the basic rural management system, cultivate new agricultural business entities, and build a new agricultural management system that combines intensification, specialization, organization, and socialization, which is important for the development of modern agriculture, improving comprehensive agricultural production capacity, and ensuring National food security and effective supply of important agricultural products are of great significance. As one of the diversified new agricultural business entities, family farms conform to the new changes in China's agricultural production at this stage. It not only adheres to the traditional advantages of agricultural family production and management, but also helps to solve the problem of maintaining the stability and sustainability of China's future agricultural business entities., Leading the development direction of China's modern agriculture and advanced productivity. Under the background of industrialization and urbanization, family farm is the most suitable and most worthy of promotion to improve the basic agricultural management system of China. 【Keywords】 family farm; large agricultural professional households; farmer cooperatives; industrial and commercial enterprises; diversified new agricultural management entities 1. Introduction in the late 1970 s and early 1980 s, China's agriculture established a two-tier management system based on household contract management and a combination of unified and decentralized management. This is created and formed by hundreds of millions of farmers to adapt to the socialist market economic system and conform to the characteristics of agricultural production. The basic agricultural management system has greatly stimulated farmers' enthusiasm and initiative in production, and created world-renowned achievements in the development of China's agriculture and rural economy. But needless to say, with the vigorous development of industrialization and urbanization and the large-scale transfer of agricultural labor, the economic and social structure of rural areas has undergone and continues to undergo tremendous historical changes. Under the structural characteristics of the so-called "institutionalized semi-work and semi-farming small-scale peasant economy", the shortcomings and problems of the agricultural double-tier management system that once played a huge institutional efficiency are also increasingly revealed, the trend of part-time and low-quality agricultural business entities is becoming more and more serious. There is a serious shortage of strong labor force in the front line of agricultural production. A large number of old, weak, sick, disabled and women have become the main force of agricultural production. Therefore, continuing to innovate and improve the basic agricultural management system to solve the future who will farm and grow grain to ensure national food security has become a major practical problem that urgently needs to be solved. In this context, China's rural basic management system has begun to undergo profound changes, and agricultural business entities have begun to differentiate. In addition to the general small-scale agricultural business entities, diversified new types of agricultural professional households, family farms, land cooperatives, and industrial and commercial enterprises are represented. The development momentum of agricultural business entities is strong, and it has become an important subject for China to build modern agriculture, ensure national food security and the effective supply of major agricultural products. It is an indisputable fact that the diversification of agricultural business entities is an inevitable trend at present and in the future. But which (some) new agricultural business entities are more in line with the special national conditions of China's large population and small land and the future development direction of modern agriculture and become the dominant form, and how to achieve functional complementarity, division of labor and cooperation among diversified new agricultural business entities to build a new agricultural management system that combines intensification, specialization, organization and socialization? These two core questions still need to be answered theoretically. This paper attempts to answer these two basic questions in the words of one family through an in-depth analysis of the characteristics of the diversified new agricultural management subjects that have emerged in practice. Analysis on the Characteristics of 2. Diversified New Agricultural Management Entities major (I) Agricultural Professionals generally speaking, large agricultural professionals refer to farmers who have a certain scale of operation and engage in specialized production around a certain agricultural product on the basis of division of labor in the process of agricultural production and management. At present, the definition of major agricultural professionals is mainly based on the scale of their cultivation or breeding. Due to the differences in land resource endowments, the quantitative standards for large agricultural professionals vary across the country. Taking large grain growers as an example, in 2012, the national definition standard is that the operating area is more than 30 mu; the definition standard of Heilongjiang Province is that the actual grain planting area is not less than 1000 mu; the definition standard of Shandong Province is that the grain planting area is 300 mu and above (including wheat, corn, rice and other food crops, of which the planting area of wheat or rice is 150 mu and above). Large agricultural professional households have also played a very important role in ensuring national food security, improving comprehensive grain production capacity, improving the effective allocation of land resources and changing the mode of agricultural development, which is a great progress compared with small-scale farmers. However, large agricultural professionals are still facing some problems that cannot be ignored in terms of health, standardization, and stable development. First, the land transfer method is not standardized. Standardized land transfer is a prerequisite for the emergence of large agricultural professional households (including other business entities). Standardized land transfer provides land resources for the growth of large agricultural professional households, and provides basic conditions for the birth of more and larger agricultural professional households. Some large agricultural professionals only have oral agreements in the process of land transfer, without written contracts, or written contracts are not standardized, resulting in continuous disputes over land transfer in the process of agricultural production. Due to the lack of detailed rules for the implementation of the current farmland lease subcontracting policy, most of the farmland transfer-out households are unwilling to sign long-term transfer contracts. As a result, some large agricultural professional households generally have a short transfer period of land transfer, and the land transfer is unstable, which affects the long-term investment of large agricultural households in farmland infrastructure. Positivity. Second, the land is scattered. Although some large agricultural professional households have significantly reduced the degree of land fragmentation through land transfer, and realized the continuous management of land and economies of scale, there are also some large agricultural professional households contracted cultivated land with household contracting and scattered fields. It is not convenient for unified layout and management, which restricts the development of large-scale production. Third, most large agricultural households lack professional training. Although most of the large agricultural households have been engaged in agricultural production for many years and have rich practical experience, they generally have not received systematic agricultural professional training and learning, and it is difficult to master new agricultural technologies. The level of scientific grain planting needs to be improved, and it is difficult to effectively undertake the important task of modern agricultural development. Fourth, large agricultural professionals also have a certain degree of "non-grain" tendency of arable land. Affected by factors such as low comparative efficiency of grain planting and high land transfer costs, some large agricultural households have converted the land originally used for growing grain into the development of aquaculture, high-efficiency cash crop planting, ecological agriculture, leisure agriculture, etc. The "non-grain" tendency of cultivated land is obvious. (II) farmers land cooperatives in recent years, farmers' professional cooperatives have sprung up like bamboo shoots after a spring rain. By the first quarter of 2012, there were 552000 farmers' professional cooperatives registered according to law, and more than 4300 million farmers, accounting for about 17.2 percent of the farmers, and the transferred land area reached 30.55 million mu, accounting for 13.4 percent of the total cultivated land circulation area in the country. In practice, as the carrier of land transfer, cooperatives gather the scattered land of farmers through trusteeship, shareholding, leasing and other means, and the cooperatives directly engage in agricultural production and operation in accordance with the company system. As a kind of system innovation on the basis of rural household contract management, farmers' professional cooperatives are a modern agricultural management organization formed by farmers voluntarily to optimize the economic interests of their members. It is an institutional arrangement for farmers to resist capital and effectively reduce the transaction costs of entering the market, and it is also an important carrier to provide socialized services for agricultural production subjects. However, due to the congenital difficulties of agricultural production supervision and measurement, coupled with the non-profit characteristics of farmers' cooperatives and the difficulties of collective action, cooperation fails as soon as it enters the field of agriculture, especially food production. This is a worldwide phenomenon. Therefore, as one of the main forms of agricultural management, farmers' land cooperatives will still develop, but from the perspective of agricultural production and management subjects, it is unlikely to become a universal and efficient main form. In real life, most land cooperatives are actually engaged in corporate management, which is not essentially different from industrial and commercial enterprises entering the planting industry. (III) industrial and commercial enterprises it is not news that industrial and commercial enterprises enter the rural and agricultural fields. The agricultural industrialization management of "leading enterprise N farmers" is a typical manifestation that has already started the tide of capital going to the countryside. It is worth noting that in recent years, some urban industrial and commercial enterprises have used local government investment policies to create new ideas for the management of the entire industrial chain of agricultural products, and with their own strong economic strength, by wantonly occupying farmers' arable land, it has triggered a wave of industrial and commercial enterprises. Entering the new wave of agriculture (planting industry), a new business entity, has emerged in agriculture (planting industry). According to statistics from the Ministry of Agriculture, as of the end of December 2012, of the 0.27 billion mu of cultivated land transferred by household contract management nationwide, the area of cultivated land flowing into industrial and commercial enterprises was 28 million mu, an increase of 115 percent over 2009. Although the absolute amount of arable land flowing into industrial and commercial enterprises is limited, its proportion in the total area of circulation has reached 10.3 per cent, and is on the rise rapidly. It is true that there is no doubt that industrial and commercial capital going to the countryside will bring benefits to rural agricultural farmers. Industrial and commercial capital going to the countryside can bring scarce resources such as material capital, human capital and social capital that are urgently needed for agricultural development. Advanced management methods can be introduced to drive farmers to increase their income and become rich by means of technology demonstration, market guidance and stimulating rural employment, It plays an important role in revitalizing the scattered and inefficient agriculture and developing modern agriculture. However, it can not be ignored that industrial and commercial capital (especially urban industrial and commercial capital) going to the countryside is a "double-edged sword", and its entry into the agricultural production process may also bring a series of serious negative effects. First, if industrial and commercial capital directly participates in agricultural production and operation on a large scale and for a long time, it will inevitably have a crowding-out effect on the farmers working on the original land and affect the employment of the rural population (although industrial and commercial enterprises entering the planting industry also absorb part of the agricultural labor force in the form of employment or anti-contracting rent, but the crowding-out effect on the agricultural labor force, especially the elderly agricultural labor force, exists. With the change of the nature of China's labor market, in fact, the elderly but effective agricultural labor force is very beneficial to ensure the stability of the labor market and maintain the rapid growth of China's economy). Although industrial and commercial capital can absorb some farmers to participate in agricultural production and operation as agricultural workers, it is impossible to employ all farmers who have transferred their land, especially those who are too old, frail and sick, and have low non-agricultural employability. In addition, the current rent of land transfer is generally not high, which is bound to affect the living conditions of those farmers who have poor ability to maintain sustainable livelihood. Second, some industrial and commercial capital changed the land use without authorization, so that the transferred land showed the phenomenon of "non-agricultural" and "non-grain. According to statistics from the Ministry of Agriculture, only 6% of the industrial and commercial capital in some areas went to the countryside to engage in grain production. In the long run, it will endanger the national food security policy to a great extent. Third, there is short-term behavior of industrial and commercial capital going to the countryside to rent land. Some industrial and commercial enterprises themselves do not have the experience of operating agricultural land. Once operational risks occur, they will leave. The risks will inevitably be passed on to farmers. Especially if some enterprises have difficulties in operating under the condition of changing the use of agricultural land, the problem will be even greater. Farmers will face the dilemma that the cultivated land will be destroyed and cannot be reclaimed after the withdrawal of industrial and commercial capital. Fourth, even if industrial and commercial enterprises are really engaged in agricultural production, due to the obvious cost of agricultural land, virtual high, enterprise capital profit-seeking and excessive marketization of agricultural products, it will certainly push up the prices of agricultural products abnormally. Therefore, in the current stage of agricultural development, it is necessary to strictly monitor it and eliminate the advantages and disadvantages (in 2013, the No. 1 document of the Central Committee proposed to "encourage and guide urban industrial and commercial capital to develop planting and breeding industries suitable for enterprise management in rural areas". It is also proposed to "explore the establishment of a strict access and supervision system for industrial and commercial enterprises to lease farmland (forest land, grassland) contracted by farmers". Including the entry of industrial and commercial capital from cities into agriculture may be an inevitable trend of China's agricultural development in the future. It can be a supplement to agricultural business entities, but it should not and cannot become the dominant agricultural business entities. Characteristics of 3. Family Farm and Its Relationship with Other Business Entities characteristics of (I) family farms family farm is an imported term from Europe and America. In China, it refers to a new type of agricultural business entity that takes family members as the main labor force, engages in large-scale, intensive, and commercialized agricultural production and operation, and takes agricultural income as the main source of family income. Although family farms have not started for a long time in China, and there is still a lack of clear definitions and accurate definition standards, generally speaking, family farms have the following characteristics: 1. Family farmers have a natural dependence on the land. Family farmers basically come from local natural persons, and they have very strong feelings with the land. The land-loving complex is deeply rooted. The land is not only their basic means of production and the foundation of their lives, but also contains a sense of blood and kinship recognized by the family ancestors. It embodies their value beliefs, spiritual sustenance and a long-standing humanistic spirit; at the same time, they have a strong geographical relationship with the location of the farm, familiar with the local natural and social environment and maintain a high sense of identity and recognition of the community of life, and have a high sense of moral responsibility to protect the local natural and cultural environment and achieve sustainable development. Therefore, the behavior of family farmers is not only constrained by economic laws, but also by moral constraints based on geo-kinship and life community. These are an important feature that distinguishes family farms from other agricultural operators, especially industrial and commercial capital enterprises. (II) family farm is an upgraded version of the agricultural professional Also as the main body of agricultural scale production and operation, there are both connections and differences between family farms and large agricultural professionals. According to the three main standards of family farms proposed by the Ministry of Agriculture (with family members as the main labor force, engaged in large-scale, intensive, and commercial agricultural production and operation, and agricultural income as the main source of family income), family farms will inevitably come from agriculture. Large professional households, but compared with the various problems faced by large agricultural professional households, family farms have high thresholds and strict access systems, and their definition standards are also strictly higher than those of large agricultural professional households. First, family farms must have family members as the main labor force, with no perennial employees or a number of perennial employees not exceeding the number of family farmers. Second, the land circulation of family farms must be standardized. The land transfer of family farms should not only have a formal written contract, but also the land transfer period should not be less than 10 years. Third, the family farm land to achieve contiguous management. Family farms should be combined with local resource endowments, and the area of a single piece of land should not be less than a certain number of acres. Fourth, family farmers must be professional farmers. Family farmers must not only take agriculture as a fixed or even lifelong occupation, but also have the cultural literacy, management experience and management ability to adapt to the development of modern agriculture. Fifth, family farms are not allowed to change the original land use without authorization, so that the transferred land presents "non-agricultural" and "non-grain" phenomena, endangering national food security. (III) Farmers' Cooperatives Are the Main Service Body of Family Farm the course of 30 years of agricultural development has proved that the two-tier management system based on household contract management and the combination of unification and division has injected vitality and vitality into the development of rural agricultural economy with the centralized function of "unification" and the flexible advantage of "division". However, the basic rural management system and agricultural production and management mode are not immutable, but are constantly innovated and improved. Under the new background of agricultural marketization, internationalization and modernization, on the basis of adhering to agricultural family management, it is more necessary to pursue the best combination of unification and division, and realize the innovation at the level of "unification. The most important point in innovation is to develop the agricultural socialized service system and resolve and coordinate the sharp conflict between small-scale farmers' production methods and socialized large-scale production. At the same time, the construction of a social service system covering the whole process, comprehensive supporting, convenient and efficient is also an inevitable requirement for the development of modern agriculture. The production scale of family farms is large, the production based on the division of labor is strong, and the links between the various links of agricultural production are also very close, and they also face greater market risks and natural risks. it is more urgent to provide a full range of social services for its agricultural pre-production, in-production and post-production links. Therefore, cooperation is the basis and condition of family farms, and the alliance between family farms also provides the basis for the formation of the scale of cooperatives. This alliance and cooperation based on the internal needs of farmers is more conducive to the development and growth of farmers' cooperatives. Family farms have a certain appropriate scale of operation, but the internal scale of this manufacturer is not large enough to internalize the various social services it needs. Therefore, in this sense, family farms are more in urgent need of the market to provide various social services. As an important main body of the new agricultural socialized service system, farmer cooperatives can provide family farms with financial services, information services, agricultural technical services, agricultural production materials and agricultural products supply and marketing services, primary processing and deep processing services of agricultural and sideline products, etc. Social services enhance the ability of family farms to prevent technical risks, natural risks and market risks. Therefore, "farmer cooperative family farm" is a new model of agricultural industrialization management that is efficient and worthy of promotion. This model, on the basis of adhering to family management, realizes large-scale land planting, standardized production, and industrialized management. The innovation of the "combination of unification and division" of the two-tier management system is in line with the direction of modern agricultural development and will surely become one of the basic management forms of agriculture in the future. (IV) industrial and commercial enterprises are an important supplement to family farms. Industrial and commercial capital should not be directly involved in agriculture, especially grain production and operation on a large scale for a long time, but this does not mean that industrial and commercial enterprises cannot make a difference in agricultural production. Industrial and commercial capital can rely on its strong material capital, human capital and social capital. Enter the industries that are more suitable for enterprise management, such as facility agriculture, large-scale breeding and the development of "four wastes" resources, engaged in the upstream areas of the industrial chain such as the sales and deep processing of agricultural products, and provided social services such as pre-production, mid-production, and post-production for family farm agricultural production, so as to give full play to the supplementary, driving and service effects of industrial and commercial enterprises on family farms. However, it is necessary to ensure that the agriculture of family farms, especially the status of large-scale operations of grain production, establish a strict access and supervision system for industrial and commercial capital leasing farmers to contract land, and prohibit industrial and commercial enterprises from relying on their strong capital strength to compete with weak family farms for cultivated land. Production and management rights. 4. Conclusion the report of the 18th National Congress of the Communist Party of China clearly stated that it is necessary to develop various forms of large-scale operations and build a new agricultural management system that combines intensification, specialization, organization, and socialization. This is the evolution of China's agricultural management entities for a long period of time in the future. Basic principles and directions. To reform and improve the basic rural management system and cultivate new agricultural business entities, we must comprehensively consider the special national conditions of China with more people and less land and the current stage of China's agricultural development. In the future, the main body of agricultural management in China must be a pattern of coexistence of multiple subjects. As an upgraded version of large agricultural professionals, the emergence of family farms conforms to the current new trend of agricultural development in my country. On the basis of adhering to and giving full play to the advantages of agricultural family production and management, it has effectively solved the problem of stability and sustainability of my country's future agricultural business entities., And through moderate scale operations, intensification and commercialization promote agricultural efficiency and farmers' income. Therefore, family farms reflect the historical regularity of transforming traditional agriculture, lead the development direction of modern agriculture, and represent the advanced productivity of Chinese agriculture. It should become the most important form of China's agricultural management system in the future. At the same time, other new agricultural business entities as a supplement, its advantages should also be given full play. Promote the innovation of basic agricultural management systems at the two levels of "unification" and "division" to build a new agricultural management system that combines intensification, specialization, organization, and socialization; promote the standardized and stable development of large agricultural professional households to make it Transform into family farms; build a new socialized service system to give full play to the social service function of farmer cooperatives; encourage and restrict the entry of industrial and commercial capital into agriculture, give full play to the complementary, driving and service effects of industrial and commercial enterprises on family farms. Comments: ① According to data released by the State Administration for Industry and Commerce on January 10, 2013, by the end of 2012, there were 689000 specialized farmer cooperatives, an increase of 32.07 percent over the end of the previous year, with a total investment of 1.1 trillion billion yuan, an increase of 52.07 percent. References] [1] Du Zhixiong. New changes in China's agricultural development and several noteworthy issues [J]. China Village Discovery, 2012,(Winter's Number). [2] Dong Jun. Central document No. 1 encourages "capital to the countryside" [EB/OL]. Xinhua, 2013-02-15. [3] Huang Zuhui, Yu Ning. New Agricultural Business Entities: Status Quo, Constraints and Development Ideas -- A Case Study of Zhejiang Province [J]. China Rural Economy, 2010,(10). [4] Li Gucheng, Li Chongguang. Farmer household management at the crossroads: where to go [J]. The Economist, 2012,(1). [5] Liu Xiaoping. On the Evolution and Innovation of China's Rural Basic Management System [J]. Economic Geography, 2009,(2). [6] Wang Xinzhi. Analysis of the meaning of the first mention of "family farm" [N]. Volkswagen Daily, February 24, 2013. [7] Zhu Qizhen, Yang Huiquan. Innovation of rural two-tier management system under the condition of long-term farmland contract relationship [N]. China Reform Newspaper, 2008-10-27. 2. Family farms adhere to the advantages of agricultural family production and management. From the practice of agricultural development in various countries in the world, agricultural family management, as a basic form of agricultural management, has better adaptability than other management methods. Whether in the United States and Canada where there are "less people and more land", in France and Germany where "people and land are balanced", or in Japan and South Korea where there are "more people and less land", agricultural family management is the most common form of agricultural management. The reason why agricultural family management has such a wide range of adaptability is fundamentally based on the special nature of agricultural production and the special advantages of family management. Agriculture is a special industry intertwined with economic reproduction and natural reproduction. The dispersion and frequency of its production activities make it very difficult to monitor and measure it. It is prone to problems such as information asymmetry, principal-agent and opportunistic behavior, which leads to low agricultural production efficiency. This special nature of agricultural production puts forward higher requirements for its business organization. As a special interest community, the family has a series of super economic social capital ties, including blood relationship, emotion, marriage ethics and so on. It is easier to form common goals and behavior consistency. In the process of agricultural production, there is no need for accurate labor measurement and supervision, so that workers have great initiative, enthusiasm and flexibility. Therefore, as a special form of efficient organization, family farm can solve the problems of cooperation, supervision and incentive in agricultural production with minimal negative effects. It is the innate best organizational form of agriculture, especially grain production and management, and it is also the main form of agricultural operation in all countries in the world. 3. Family farms have solved the problem of the stability and sustainability of China's future agricultural business entities. The current transfer of surplus labor in China's rural areas has led to a large one-way and unbalanced loss of high-quality labor resources in rural areas. There is a serious shortage of strong labor in rural and agricultural production. Most of the people who are really engaged in agricultural production all year round are "38, 61, and 99 troops." A large number of old, weak, sick, disabled and women have become the main force in agricultural production, and the weak position of rural areas has been further consolidated and strengthened. In the next ten years or decades, who will grow grain and who will engage in agricultural production has become an urgent problem in front of us. For family farms, the specialization, scale and modernization of agricultural production are its basic requirements, which puts forward higher professional quality requirements for farmers. As a new type of agricultural business entity, farmers are not only experienced and technically comprehensive planting experts in agricultural production, but also have certain market judgment ability and risk awareness, and must understand modern agricultural science and technology. Therefore, the family farmer must be a new professional farmer with culture, technical knowledge and comprehensive skills in production management and marketing. By cultivating more professional farmers to become the main body of family farms, agricultural production will automatically realize intergenerational inheritance and the replacement of new and old in the process of its development, thus effectively solving the problem of the stability and sustainability of China's future agricultural management entities. 4. Family farms have moderate economies of scale. At present, China's one-family ultra-small agricultural scale operation has internal efficiency, but it lacks external efficiency and overall efficiency. First of all, the ultra-small-scale agricultural operation of one household is not conducive to the specialization, standardization, mechanization, technology, informatization, and branding of agricultural production, so it is difficult to realize agricultural modernization; secondly, the ultra-small-scale agricultural operation of one household, The efficiency of resource allocation is not high, it is difficult to achieve economies of scale, and it is impossible to reduce agricultural operating costs and increase agricultural output, so it is difficult to increase farmers' income level; again, it is not conducive to the game between farmers and other agricultural related stakeholders such as agricultural leading enterprises. When farmers enter the market, they have high transaction costs, high risks, and little power to protect their own interests. To realize the scale operation of agricultural production is the inevitable requirement of exploring the development road of modern agriculture with Chinese characteristics, and it is also an important way of agricultural modernization. However, the scale of family farms is not as large as possible. It is necessary to take into account the speed of local rural labor transfer, the level of existing agricultural technology and equipment, and the scope that a family can take into account in the supporting social service system. Otherwise, if the scale of family farms exceeds its own Operating capacity, resource utilization, land output rate and economic benefits may all decline. Therefore, it is necessary to realize the optimal allocation of land, labor, capital and management through the moderate scale operation of family farms, so as to improve the labor productivity, land output rate and commodity rate of agricultural products, and then enhance the comprehensive production capacity, anti-risk ability and market competitiveness of agriculture, and promote the rapid development of modern agriculture.
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Zhu Lizhi et al.: Suggestions on the Reform of Agricultural Management SystemZhu Lizhi et al.: Suggestions on the Reform of Agricultural Management System xi Jinping, General Secretary of the Central Committee of the Communist Party of China, pointed out in his explanation on the ''Decisions of the Central Committee of the Communist Party of China on Several Major Issues of Comprehensively Deepening Reforms'' that mountains, rivers, forests, fields and lakes are a community of life. The lifeblood of the mountain is the soil, and the lifeblood of the soil is the tree. Use control and ecological restoration must follow the laws of nature. If the tree planting only cares about planting trees, the water control only cares about water control, and the simple protection of the field, it is easy to take care of one and lose the other, and ultimately cause systematic ecological damage. One department is responsible for the control of all land and space uses within the territory, and it is necessary to carry out unified protection and restoration of mountains, rivers, forests, fields and lakes. In recent years, my country's administrative system reform has continued to deepen, and new progress has been made in the reform of the working mechanism. However, due to many obstacles, the task of accelerating the formation of a system and mechanism that meets the requirements of scientific development is still very arduous. Similarly, although my country's agricultural management system has been reformed several times and its management functions have been gradually strengthened, due to various constraints, the new management system that adapts to the development of modern agriculture is still very imperfect. According to incomplete statistics, more than a dozen ministries (bureaus) are involved in the management of agriculture before, during and after production. Among them, in the quality and safety management of agricultural products and agricultural investment management, nearly ten ministries (banks) are involved; in the management of agricultural product processing and circulation and the management of agricultural production materials, many ministries (bureaus) are also involved. The current pace of reform of the national agricultural management system not only lags behind that of some local provinces, but also has a growing gap with the management of developed countries, and the division of departments and management are seriously out of touch, resulting in a management situation with multiple departments, cumbersome procedures, high cost and low efficiency, which has reached a critical time for in-depth reform. The 18th National Congress of the Communist Party of China proposed to "accelerate the development of modern agriculture, enhance the comprehensive agricultural production capacity, and ensure national food security and effective supply of important agricultural products." The construction of modern agriculture has become one of the major tasks of building a well-off society in an all-round way. Modern agriculture is the necessity of the development of traditional agriculture, and it is an all-round change. From the practice at home and abroad, modern agriculture is a specialized, information-based, socialized and intensive industry with extensive and continuous application of modern science and technology, modern industrial equipment and modern management. it is a comprehensive industry with high efficiency and high efficiency that combines production, processing and sales, pre-production, mid-production and post-production, and production, life and ecology. With the multi-functionality of modern agricultural development, the state's requirements for macro-control and management of agricultural development are higher and more complex. In order to strengthen the functions of agricultural macro-management and meet the needs of domestic and foreign markets, the United States, Japan and European Union countries, as well as some newly industrialized countries and regions, have successively adjusted and reformed the agricultural management system according to the concept and construction process of modern agriculture, not only broadening the scope of management, but also strengthening management functions and means, protecting and supporting the agricultural industry in accordance with the law, and implementing all-round management of the agricultural industry chain and rural comprehensive development. At present, some provinces in China have reformed the agricultural management system, merged the provincial management office, the Department of agriculture and other relevant agricultural related institutions, and formed the Agricultural Committee, which has made a useful exploration on the road of "changing functions, straightening out relations, streamlining troops and streamlining administration, and improving efficiency. At present, China is faced with the arduous and urgent tasks of strategic adjustment of agricultural structure and increasing farmers' income, as well as the competition of agricultural products trade with developed countries. We should reform the agricultural management system as soon as possible, and ask for efficiency and productivity from the system. In accordance with the requirements of the 18th National Congress of the Communist Party of China, in the spirit of seizing opportunities and advancing with the times, from a systematic, comprehensive and overall perspective, adopt institutional reforms, functional integration, and phased approach, and establish a new national Ministry of Agriculture: (I) rationally allocate management functions and establish an efficient operation mechanism. In the cross-functional areas of agricultural production, agricultural investment, internal and external quarantine of animals and plants, quality and safety of agricultural products, processing of agricultural products, and agricultural trade negotiations, it is recommended that the national agricultural department manage them to better improve work efficiency. (II) integrate relevant management institutions and build an efficient operation platform. Effectively reform the decentralized management model of departments, integrate the overlapping and overlapping institutions of the agricultural sector and other departments, and reduce management links and implement centralized and unified management in accordance with the principle of "one matter, one related matter, one institution. For example, with agricultural resources and environmental protection as the core, integrate water-saving irrigation, returning farmland to forest (grass, lake), soil and water conservation, wetland protection, farmland water conservancy and other functions. (III) the construction of up and down through, vertical management of public services and support protection system. First, the law enforcement work of fishery administration, veterinary medicine, agricultural (veterinary) medicine, and the quality and safety of agricultural products shall be carried out, and a system of combining the dispatched agencies of agricultural departments with vertical management at and below the provincial level shall be implemented. The second is to comprehensively improve the inspection system composed of national inspection, provincial inspection, agricultural product inspection stations in the main production (marketing) areas and enterprise self-inspection, and accelerate the implementation of the whole process of quality control of agricultural products. The third is to rectify the certification system, strictly regulate the full certification of pollution-free agricultural products, green food, organic food and geographical indications of agricultural products, and vigorously carry out international mutual recognition. At the same time, improve the construction of law enforcement agencies to ensure the effective implementation of agricultural laws and regulations. (IV) continued to deepen institutional reforms and actively promoted pilot projects. First, select key products for pilot management system reform. For example, the integrated management of production, processing, and circulation can be tried out for Xinjiang cotton, Guangxi sugar industry, and fisheries in coastal provinces. The second is to select some areas to implement the integrated management reform of production and marketing, trade, industry and agriculture. The third is to improve the early warning system for agricultural trade and quality safety. The fourth is to combine the integration of urban and rural areas and standardize the transfer mode of rural surplus labor force. Fifth, improve the management mechanism of new agricultural business entities. The State should formulate preferential policies in terms of finance, credit and taxation to provide necessary support. (V), in accordance with the requirements of consistent power and responsibility, strengthen the management of the use of financial funds for supporting agriculture. It is necessary to effectively change the current situation in which my country's fiscal agricultural expenditure is managed in blocks and limited funds cannot form a joint force, adjust the structure of national fiscal agricultural expenditure, and improve the management and supervision mechanism. It is suggested that the general allocation and management principles and systems of the state financial funds for supporting agriculture should be the responsibility of the state financial department, and the specific implementation and management should be the responsibility of the national agricultural administrative department. On the basis of improving efficiency, we should make good use of financial funds to support agriculture, further strengthen the construction of agricultural infrastructure, vigorously support the adjustment of agricultural structure, strive to promote agricultural industrialization, effectively protect and improve the comprehensive grain production capacity, improve the animal and plant quarantine and epidemic prevention system, standardize the quality standards and inspection and supervision system of agricultural products, and improve the market and information service system of agricultural products. Comprehensively strengthen agricultural scientific research and education, agricultural technology promotion and the cultivation of new professional farmers, attach great importance to the construction of agricultural ecological environment protection, accelerate the development of poverty-stricken areas, and significantly eliminate the income gap between urban and rural residents. (The author is a researcher at the Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences)
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Cheng Guoqiang: Why should we explore the establishment of a target price system for agricultural productsCheng Guoqiang: Why should we explore the establishment of a target price system for agricultural products the Central Document No. 1 proposes to "improve the price formation mechanism of important agricultural products such as grain"; "continue to adhere to the market pricing principle, explore and promote the reform of decoupling the agricultural product price formation mechanism from government subsidies, and gradually establish a target price system for agricultural products, and subsidize when the market price is too high. Low-income consumers, when the market price is lower than the target price, subsidize producers according to the price difference, and effectively ensure farmers' income"; "in 2014, launch Northeast and Inner Mongolia soybean, Xinjiang cotton target price subsidy pilot" in accordance with the spirit of the No. 1 Central Document, in the future, my country will promote the improvement of the price formation mechanism of important agricultural products such as grain in accordance with the principle of market pricing and separation of price compensation. Gradually establish a target price system. The so-called target price subsidy means that the government determines the target price of agricultural products in advance. When the actual market price of agricultural products is lower than the target price, the government subsidizes agricultural producers according to the difference between the two to ensure their basic income; if the actual market price of agricultural products is higher than the target price, there is no need to start the target price subsidy policy. So, why explore the establishment of a target price system for agricultural products? Since the beginning of the new century, China has implemented price support policies for agricultural products, such as minimum purchase prices and temporary purchases and storage, which, on the one hand, have played a key role in effectively mobilizing farmers' enthusiasm for growing grain, achieving "ten consecutive increases" in grain production and "ten consecutive increases in farmers' income", enhancing the ability to regulate and control grain and maintaining market stability. On the other hand, a series of new problems and new contradictions have gradually emerged, especially under the new situation of important changes in the domestic and foreign environment, the existing support policies are facing more and more severe challenges. First of all, the price formation mechanism of agricultural products is distorted, and the role of the market is not effectively played. For example, since 2008, the state has raised the minimum grain purchase price for six consecutive years, which has effectively mobilized the enthusiasm of farmers to grow grain and expanded their income from growing grain. On the other hand, it has also made the grain market price "bottom" signal significant. The expectation of "only rising but not falling" has been strengthened, and the grain price formation mechanism and market price signal have been distorted, To a certain extent, the grain market has shown a "policy" trend. Secondly, the prices of agricultural products at home and abroad are upside down, and the pressure on imports is increasing day by day. With the support of the minimum purchase price and the temporary storage policy, the current domestic prices of major agricultural products such as rice, wheat, corn, soybeans, and cotton are close to or higher than the international market prices. If domestic prices continue to rise in the future, the inversion of domestic and foreign prices is likely to expand further, which will put huge import pressure on the domestic market. For example, cotton and sugar have formed an unfavorable situation of "increasing domestic production-increasing national reserves-increasing imports-increasing national reserves", which not only increases the financial burden, but also affects the effect of policy implementation. Third, the situation of agricultural resources and environment is grim, and the sustainable development of agriculture is facing challenges. Policies such as the minimum purchase price and temporary purchase and storage have effectively mobilized farmers' enthusiasm for growing grain and promoted grain production. At the same time, they have also led to prominent environmental problems such as soil degradation, over-exploitation of groundwater, over-use of fertilizers and pesticides, and agricultural non-point source pollution. Sustainable development is facing huge challenges. The implementation of target prices to decouple the price formation of agricultural products from government subsidies can not only effectively mobilize farmers' enthusiasm for production, but also reduce distortions to the market, which is conducive to the decisive role of market allocation of resources. It is the basic direction of my country's agricultural product support subsidy policy adjustment in the future. From the perspective of policy operation, the target price is different from the minimum purchase price and the temporary purchase and storage price, and does not directly affect the market price, but mainly plays a role in guiding the price signal of farmers. When the market price of agricultural products is lower than the target price, farmers still sell freely according to the market price, and the price difference between the two is subsidized by the government according to their planting area and average yield. This can not only mobilize farmers' enthusiasm for production, effectively guarantee the basic income of producers, but also play an important role in regulating the supply and demand of agricultural products, reduce market distortion, and curb the excessive development of agricultural resources. At the same time, it can also mobilize the enthusiasm of various market players and reduce the pressure on the government to collect and store. The central government decided to carry out pilot projects of target price subsidies for soybeans and cotton in Northeast China and Inner Mongolia in 2014, reflecting the reform strategy of "pilot first and steady progress. That is, through the current contradictions of the more prominent soybean, cotton pilot, explore implementation methods, accumulate operational experience, and then steadily promote to other key agricultural varieties, specifically, in the design of policy operations, subsidies to farmers according to planting area and output can also be considered according to sales volume. The basic principle is that the distortion of the market must be reduced as much as possible, the policy implementation must be prevented from evolving from production support to income support, and the effectiveness and sustainability of the policy must be maintained; the level of subsidies must be reasonable and appropriate, which not only guarantees the basic income of producers, but also government fiscal Expenditure can be affordable; implementation methods must be convenient and feasible, not only to ensure the directionality and accuracy of the policy, but also to be operable, and the masses can understand and accept, gradually form a target price subsidy system with clear direction, precise influence, convenient operation and remarkable effect. (Author: State Council Development Research Center researcher Cheng Guoqiang)
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Kong Xiangzhi: Developing Cooperatives and Improving the Agricultural Socialized Service SystemKong Xiangzhi: Developing Cooperatives and Improving the Agricultural Socialized Service System time: 2014-04-19 21:14 Source: China Farmers' Cooperative No. 03, 2014 Author: Kong Xiangzhi Click: 48 Times the No. 1 document of the Central Committee in 2014 pointed out that "vigorously develop socialized services with diversified subjects, diverse forms and full competition, and promote cooperative, order-based, managed and other service models." it points out the direction of the construction of China's agricultural socialized service system in 2014 and for a period of time in the future, and also explains the important position of farmers' cooperatives in the agricultural socialized service system. Agricultural Policy in the New Century Attaches Great Importance to the Role of Service Subject of Farmer Cooperatives from the very beginning, farmers' cooperatives have shown the function of providing various services for farmers before, during and after production; early cooperative organizations can at least play a role in providing market information and alleviate the difficulty of selling agricultural products to a certain extent. Therefore, after entering the new century, especially the launch of the legislative work of the the People's Republic of China Farmers' Professional Cooperative Law in 2003, the party and the government attach great importance to the role of cooperatives in the construction of the agricultural socialized service system, which is fully reflected in the 11 central No. 1 documents (Table 1). In addition to the 11 Central Committee No. 1 documents, when the Third Plenary Session of the 17th Central Committee of the Communist Party of China deployed the establishment of a new type of agricultural socialized service system, it was proposed to "accelerate the construction of public service institutions as the support, cooperative economic organizations as the foundation, leading enterprises as the backbone, and other societies. A new type of agricultural socialized service system that combines public welfare services and business services, and coordinates special services and comprehensive services", "Support supply and marketing cooperatives, farmers' professional cooperatives, professional service companies, professional technical associations, farmers' brokers, leading enterprises, etc. to provide various forms of production and operation services". It can be seen that the third Plenary session of the 17th CPC Central Committee believes that farmers' cooperatives play a fundamental role in the construction of agricultural socialized service system and must be vigorously developed. What services can farmer cooperatives provide to farmers first, to achieve "sell high and buy low" by means of joint purchases and joint sales ". In recent years, the problem of difficulty in selling agricultural products has often occurred, making farmers in structural adjustment often helpless, or follow their feelings, or have no way to go. First of all, determined by the characteristics of agricultural production and agricultural products, whether in the purchase of production factors or the sale of agricultural products, China's 0.2 billion scattered small farmers are at a disadvantage in the market. There is a buyer's monopoly in the sale of agricultural products and a seller's monopoly in the supply of agricultural means of production. Secondly, information asymmetry, an effective market depends on the ability of enterprises to obtain the information needed for production, sales and purchase in a timely manner, mainly the price information of goods. However, it is difficult for scattered small farmers to obtain complete, accurate and timely market information, and there is an information monopoly on farmers in the market. Some people who provide services and production materials for agriculture or purchase agricultural products deliberately conceal information for their own interests. Tell the farmers the truth. This information asymmetry causes distortions in the distribution of resources and increases the blindness of farmers in production, purchase and sales. In underdeveloped areas with poor market information and poor sales channels, small-area demonstration and trial planting of new products generally do not worry about sales. Once a large area is pushed out, sales will be a big problem. After farmers form cooperatives, on the one hand, they can reduce transaction costs, on the other hand, they are conducive to obtaining returns to scale. Cooperatives provide an institutional environment in which scattered individuals can unite to form mutual aid groups. On the premise of maintaining independent property subjects and business subjects, scattered farmers can reduce the sales cost per unit of agricultural products or the purchase cost of agricultural inputs and services through the combination of transaction links such as collective sales of agricultural products or collective purchase of agricultural inputs, and realize economies of scale before and after production. Second, in the production process, cooperatives enable farmers to smoothly connect with the market by providing information and technical services. First of all, joining the agricultural cooperative economic organization is conducive to reducing the cost of farmers to learn and use technology. The cooperative hires technical experts in the name of the organization to provide guidance. As long as the participating farmers can benefit, there is no need to pay additional learning fees. Or a skilled person in a cooperative who teaches technology to other members of the organization will also save farmers the cost of learning technology. Second, joining cooperatives helps increase the channels for farmers to adopt new technologies. The tasks of cooperatives are many, the most important of which is to provide members with advanced and applicable technology. Joining cooperatives helps increase farmers' access to new technologies. Thirdly, farmers' cooperatives are conducive to improving the efficiency of technology use and reducing the cost of agricultural technology extension. The use of some technologies has externalities, and the use of such technologies by one family will benefit neighboring farmers. Finally, in a cooperative, it is often those farmers who have the courage and dare to take risks to take the lead in adopting new technologies. Their exemplary role is conducive to increasing the enthusiasm of other farmers to use technology and reducing the risk of investing in new technologies. Third, to obtain scale gains and achieve economies of scale. Cooperatives can not only achieve pre-and post-natal economies of scale through centralized purchase and marketing, but also provide common services and generate additional income for grass-roots cooperatives through federations. After the cooperative has developed to a certain stage, it is necessary to unite in a larger scope, which can reduce transaction costs in a larger area, occupy a larger market share, and provide more services to its members. development trend by the end of November 2013, there were 950700 farmers' cooperatives registered according to law, with 72.21 million members, accounting for 27.8 percent of the total number of farmers. Cooperatives are playing a role in the construction of agricultural socialized service system that other subjects cannot match. In 2014 and a longer period of time, farmer cooperatives are showing a trend of integration, materialization and standardization, and are playing an increasingly important role in agricultural economic activities. Unification. The increasingly fierce market environment requires farmers' cooperatives to further improve their business scale and market competitiveness, and the establishment of cooperatives through "re cooperation" is undoubtedly the best way for cooperatives to become bigger and stronger. At present, Hubei, Shandong and other provinces have passed local laws and regulations on the establishment of cooperatives, and many provinces have also included provisions to promote the development of cooperatives in local laws and regulations on the development of cooperatives. It can be predicted that 2014 will be a year for the great alliance of cooperatives, and it will also be a year for exploring the way of "re cooperation" in the alliance and seeking the best interests of member societies. The united cooperatives have stronger service capabilities and more services for farmers. Materialized. In recent years, cooperatives have more and more substantive business operations, such as transferring land to build production bases, providing members with cheap and high-quality raw materials through the establishment of raw material production enterprises (such as feed factories of livestock and poultry production cooperatives), and establishing direct sales in urban communities to realize the docking of agricultural cooperatives. A large number of cooperatives are no longer satisfied with the loose cooperation of providing only members with information and technical services in the early stage, the shift to forming entities brought farmers closer together. In 2014, there will be more and more materialized cooperative societies, and the social services provided to members will be more practical and specific. Normalization. Materialization and demutualization are twins, and increasingly materialized cooperatives inevitably require all members to invest in shares, and the concentration of cooperative shares in a few people is bound to be fundamentally changed. The decentralization of shares also makes the general members more concerned about and participate in the decision-making of the cooperative, and constantly improve the decision-making mechanism of the cooperative. The standardized cooperatives in the union will also provide experience for other cooperatives and gradually standardize them. The Interim Measures for the Evaluation and Monitoring of National Farmer Professional Cooperative Demonstration Societies has been formally implemented on December 13, 2013. It has put forward higher requirements for national demonstration cooperatives in seven aspects: registration and establishment according to law, implementation of democratic management, standardized financial management, strong economic strength, obvious service effect, product (service) quality and safety, and good social reputation, it will inevitably lead to the standardized development of provincial, municipal and county demonstration cooperatives and all cooperatives. A standardized cooperative will inevitably provide its members with standardized, high-quality and comprehensive services.
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Luo Biliang: A simple expansion of the interpretation of resource characteristics in the "Coase theorem".Simple expansion of the interpretation of resource characteristics in the "Coase theorem". Luo Biliang my report is to make a simple extension of the "Coase theorem. The focus is on the characteristics of resources, which is an extension of the speech I gave at the annual meeting of institutional economics in Chongqing. As you know, when I was in Chongqing, I once said one of Coase's basic ideas: if the transaction cost is zero, how the property rights are arranged is not important; if the transaction cost is not zero, the property rights arrangement is important. Because property rights arrangements determine transaction costs, and different property rights arrangements imply different transaction costs, Coase always wants to find more effective property rights arrangements. The idea I want to clarify today is that this is not enough and should be further extended to trading methods. So, what determines property rights? We can discuss the problem in terms of the characteristics of goods, resources or products. The first topic: Are you worried about the extinction of chickens? How many chickens are eaten every day in the world? The corresponding question is, why do whales and elephants become endangered animals? This is a question of resource characteristics. From the point of view of property rights arrangement, elephants are usually public ownership, chickens are almost private products, which is the property rights characteristics determined by the characteristics of resources. Elephant public ownership is not good, according to the way of dichotomy, let private ownership is efficient? Coase's enterprise theory is the dichotomy-either enterprise, or market, he does not say the middle. Delaying from the characteristics of resources will inevitably involve the behavior ability of the property right subject. What are the characteristics of elephants? The individual is large, gregarious, and has a wide range of activities (as small as 40 square kilometers and as large as 3100 square kilometers). Do you dare to empower this elephant to you? Who knows where it will go tomorrow? Moreover, the life span can be as long as 100 years old. An adult elephant can eat 30-60 kilograms of physical objects, walk 3-6 kilometers a day, run up to 36 kilometers per hour, and have destructive behavior. Do you dare to ask for this thing? That's why I'm not planning on marrying a French actress. Therefore, this characteristic determines the different ways of acting subjects. There were 3-40000 elephants in Zimbabwe in the 1970 s and 6-70000 in the 1990 s, with more than 100000 elephants now, but the number of elephants in Africa has decreased from 1.2 million to 600000 in the same period. Now Zimbabwe is allowed to kill 200 elephants a year, but Kenya lost 80% of its elephants in the 1980 s. The reason why there is such a big contrast is that Zimbabwe has implemented a completely different system from other countries in Africa, that is, a collective property rights system similar to ours, while in other parts of Africa it is mainly public ownership. So we can conclude that resource characteristics have important property rights implications-classical theory says that private ownership is the most efficient of the institutional arrangements of various forms of ownership. But the conclusion just now tells us that private ownership is not efficient under all circumstances and under all conditions. The myth of private ownership must be broken. Not everything can be privatized everywhere. Because of this, the collective has the elephant, the private must have the chicken, this is the truth. The second topic: the previous discussion is a single resource utilization. Furthermore, what changes will happen to the property right when the single resource is used together to multiple resources? For example, to whom is a piece of farmland allocated? In terms of the divisibility, exclusiveness and behavior of the property right arrangement, the most effective property right arrangement is to the farmers. Because of the divisibility of land and the exclusivity of farmers, China's rural reforms were successful at first, but why did they go wrong afterwards? We know that arable land yields are determined by a variety of factors, such as soil quality, seeds, fertilization, plant protection, irrigation, field management, and irrigation conditions vary from region to region. If it is efficient to implement household farming in the southern hilly areas, it is not necessarily efficient in the arid areas of the North China Plain. Because the yield of an acre of land in the North China Plain does not first depend on the quality of the land, but is more determined by irrigation conditions. Our next question is, are the farmland irrigation facilities divisible, exclusive and behavioral? If the three characteristics are met, it is a well for each farmer. Obviously, this approach does not have economies of scale, and the use of relatively more scarce water resources is very inefficient. It should be acknowledged that the scarcity of water in North China is higher than that of arable land. Therefore, most of the situations we see are that irrigation facilities are provided as public goods or club goods-so this is the reason why we see the widespread destruction of water facilities after household contracting. For this reason, I conclude that it may not be the best way to implement family management in arid plains, nor is it necessarily appropriate to provide irrigation conditions as a public good, and that intermediate forms of organization and their property rights arrangements should be sought. Third topic: According to Coase's theorem, different property rights arrangements imply different transaction costs. The problem is that in the case of defined property rights, we find that over time, the original property rights arrangements imply very high transaction costs. What should we do? This will obviously face the "dilemma" between the stability of property rights and the efficiency of property rights. For example, the right to forest land. We know that it is very difficult to change the forest land after the right is confirmed, what should we do if the right has been confirmed? Therefore, from this point of view, for the situation that the right has been confirmed, or the property right has been defined, how to reduce the operating costs, or reduce the transaction costs, we need to do some further work. Coase obviously didn't do much of this work, and Williamson didn't do much either. On the contrary, Williamson tells us that public green space or city squares should be provided by the government, because this thing has asset specialization, indivisibility, non-exclusivity and consumer uncertainty, and what is more troublesome is that it is very difficult to measure consumer behavior. That is to say, it is very difficult for the construction of the square to be operated by private individuals, and it is very difficult to move towards marketization. My question is, must the government provide public green space? According to the Williamson paradigm to carry out the matching of property rights arrangement and property rights subject, will provide the government with sufficient reasons to "make mistakes. Therefore, further research should focus on reducing the scope of "public investment. We see that there is a troublesome problem in the green square that consumption qualification cannot be exclusive. If a lady wears a beautiful coat, are you going to charge those "slouching" guys? Therefore, people have come up with a very "talented" way-to change the way of trading-to "walk the show" through the catwalk ". Practice can teach us many things. I was once personally involved in planning the construction of a public square. Let's imagine: what are the characteristics of the square. What are the valuable properties of popularity? Commercial and real estate development value. Why can't we combine the development of green squares, shopping malls and real estate? So there is a real case ("hanging green square" in Zengcheng City, Guangdong Province): first, plan, delimit the scope of the green square, and allocate shopping malls and commercial houses around the square. The following operations are: to induce developers with development rights, to exchange shopping malls for squares, and to flourishing squares with squares. As a result, a "win-win" market-oriented pattern has been formed-(1) developers have the enthusiasm to invest: green space protection can make commercial housing easy to sell and obtain rich rental returns in shopping malls;(2) the original residents are willing to replace and relocate: the living environment is good, the real estate can appreciate;(3) the merchants are willing to rent: good location, good environment and good popularity;(4) the citizens have a good leisure and shopping environment. Therefore, we conclude that the government is not necessarily the best provider of public goods. There is another example, but I can't continue to play with you. Because I'm running out of time. Thank you all. [Luo Biliang, Dean, Professor, Doctoral Supervisor, School of Economics and Management, South China Agricultural University. This article is a revised version of the author's speech at the "Ronald Coase Thought Symposium" on December 29, 2013, with the title added by the editor] http://www.china-review.com/eao.asp?id=33841 2014-4-5
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The 2013 Annual Report of the Association [2014-01-20 Fresh Out!]China Foreign Agricultural Economic Research Association 2013 Annual Report Released the 2013 Annual Report of the Association is the first annual report issued by the Association and was issued in January 2014. The main contents of this annual report are: hold the president's office meeting and exert leadership develop new members and improve internal organization making Membership Cards to Foster a Sense of Identity implement system construction and standardize the operation of the research society build and maintain the website and mobilize members to participate world Agriculture: Patterns and Trends 2013 Annual Conference and Academic Seminar president, etc. to participate in various academic exchange activities promotion of academic status of some members strict management of research institute funds please see the attachment to this message for details. Please members and the community to criticize and correct!PDF
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Li Guoxiang: How to Reform and Innovate the Rural Land SystemChina is actively and steadily promoting a new type of urbanization, which inevitably requires the expropriation of farmers' land. How to reasonably determine the compensation standard for land expropriation? Do peasant households entering cities and towns need to give up the right to contract rural land and the right to use homesteads when migrant workers become citizens? Land urbanization and population urbanization will inevitably bring about changes in rural land and the redistribution of rights and interests, and continue to trigger contradictions and conflicts among various rural interest groups. Therefore, it is urgent to innovate the rural land system. The author believes that the bottom line should be drawn through the top-level design to ensure that the land rights and interests of special groups in rural areas are not infringed. Encourage rural grassroots to innovate land systems that are compatible with the local area, allow multiple forms of collective ownership of rural land, solve the problem of value-added income distribution of rural land expropriation, and promote the effective circulation of agricultural land to realize the optimal allocation of rural land. The existing rural land system is generally designed in accordance with the road of urbanization with Chinese characteristics and the protection of farmers' rights and interests in rural land. Years of practice have shown that my country's rural land system and policies have played an important role in promoting the rapid advancement of my country's urbanization and rural social stability. However, in real life, more and more contradictions and conflicts in the existing rural land system and policies cannot be avoided. Therefore, on the basis of basically stabilizing the rural land system and policies, continuous reform and innovation can better provide institutional guarantee and motivation for the coordinated advancement of my country's new urbanization and agricultural modernization. With the continuous advancement of urbanization in my country, if the rural land system is not adjusted accordingly, contradictions and conflicts in reality will continue to accumulate, hindering the advancement of new urbanization. However, the reform and innovation of the rural land system involves a wide range of interests and has a very obvious impact on the economy and society. it is directly related to the stability of rural society, the allocation of rural land resources, the cost and risk of agricultural production, the price level of agricultural products (000061, shares) and the burden of food consumption of residents. Objectively speaking, in reality, there is no perfect rural land system reform and innovation plan to protect the interests of micro-subjects and the overall economic and social interests at the same time. How to reform and innovate the rural land system? In order to avoid confusion and negative effects, an overall design is needed. Who will design it? Should there be a top-level design first, or should we let the grass-roots level explore first? According to the author's many years of investigation in rural areas, we know that China's rural areas are very different, farmers defined by agricultural hukou as a symbol are rapidly dividing, and there are differences in the specific arrangements of rural land systems chosen and the implementation of rural land policies. If the top-level design of the rural land system is too detailed, it may seriously restrict the enthusiasm of the grassroots to explore and innovate the specific arrangements of the rural land system. In reality, farmers will not implement the relevant regulations on rural land in place, but damage the authority of the top-level design. If there are no principles and certain constraints, the reform and innovation of the rural land system at the grassroots level is very likely to infringe on the rights and interests of rural vulnerable groups and affect rural social stability. If the top-level design and villager autonomy are organically combined, better results may be achieved. The key to the top-level design of the rural land system arrangement is to draw a bottom line to ensure that rural women and children and low-income groups or rural land rights and interests of groups that use land as the main source of livelihood are not infringed. On the basis of this bottom line, we can let go to innovate through villager autonomy. The specific arrangements of the rural land system in China stimulate rural vitality, and use market mechanisms as much as possible to promote the optimal allocation of rural land. When the rural land is legally requisitioned by urbanization, who should make the decision in rural areas? How to determine the compensation standard for land requisition? How to distribute the compensation income of rural land? These issues must be defined in land urbanization. In order to prevent a small number of village cadres from sacrificing the interests of landless farmers and rural collective interests in order to obtain private interests, the protection of farmers' rights and interests in land urbanization can consider the hierarchical decision-making mechanism. High-level decision-making power is given to land-lost farmers to safeguard the rights and interests of land-lost farmers as the bottom line; intermediate decision-making power can be given to villagers' congresses or all villagers to balance the interests of land-lost farmers and village collectives in accordance with the democratic principle that the minority is subordinate to the majority; low-level decision-making power is given to a small number of village cadres to review and supervise the legality of land urbanization. For the illegal expropriation of farmers' land or the expropriation of farmers' land by rent, we should strengthen the punishment of rural management cadres to ensure that the red line of cultivated land is not broken. In order to promote the new urbanization and solve the problem of population urbanization, the corresponding overall idea of rural land system innovation should follow the strategy of easy first and difficult step by step. The first step is to keep the contracted management rights of rural land unchanged for a certain period of time, build a rural land transfer market, and encourage land transfer; the second step is to introduce a market mechanism when the time is right to contract rural land through one-time compensation. But farmers who have not cultivated land for a long time give up the right to contract management and implement land ownership for the tillers. In the construction of the rural land transfer market, institutional arrangements should allow those farmers who are less dependent on contracted land to transfer out of contracted land more actively. In particular, most middle-and high-income families in rural areas mainly rely on non-agricultural industries or migrant workers for income, the opportunity cost of operating small-scale contracted land is high, unable to concentrate on agricultural production, and the output of contracted land is inefficient. If the middle-and high-income families with little dependence on the contracted land are allowed to transfer the contracted land out, it will not affect the family income, but also benefit the agricultural scale operation. With the continuous maturity of conditions such as a sound social security system, through market mechanisms and policy adjustments, urban families who no longer rely on rural land will completely give up their land contract management rights and homestead use rights in rural areas. Vulnerable groups in rural areas are restricted by family labor resource endowments, non-agricultural employment opportunities are few, wage income is often difficult to guarantee basic survival needs, and their dependence on rural land is relatively large. In any case, it is necessary to ensure that the land of these rural households Contractual management rights are not infringed. 2013-08-07 16:15 Daily Economic News
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Jiang Changyun on Shandong's Service Industry: There are Mountains, Water and Sageswww.sdchina.com source: Volkswagen Daily 2013-07-26 during the expert seminar on the scientific leapfrog development of the service industry in Shandong Province, Jiang Changyun, a researcher and director of the Research Office of the Institute of Industrial Economics and Technical Economics of the National Development and Reform Commission, accepted an exclusive interview with our reporter. The development of Shandong's service industry should focus on industrial development. Shandong's agriculture and manufacturing industry are relatively developed, and agricultural industrialization is in the forefront of the country. It can vigorously develop technology and art design industry, leisure agriculture, tourism industry, experience leisure and other industries. During the expert seminar on the scientific leapfrog development of the service industry in Shandong Province, Jiang Changyun, a researcher and director of the Research Office of the Institute of Industrial Economics and Technical Economics of the National Development and Reform Commission, accepted an exclusive interview with our reporter. Jiang Changyun mentioned that China's economic situation in the first half of 2013 is not optimistic, especially in 1., the growth rate of the secondary industry has declined significantly. On the contrary, in the first quarter of 2013, the scale of the added value of the service industry exceeded that of the secondary industry for the first time, and its proportion in GDP exceeded that of the secondary industry for the first time (45.9). For the first time, the service industry became the industry with the largest added value and the highest proportion of GDP among the three industries in China. Taking this as an opportunity, the service industry in turn enhances economic confidence and drives the development of primary and secondary industries. In view of the unfavorable situation of the primary and secondary industries, efforts must be made to make a fuss about the tertiary industry and innovate the service industry. Jiang Changyun revealed that the state will issue relevant policies and guidance to encourage the development of pension services and emerging service industries. Jiang Changyun believes that Shandong has many advantages in developing the service industry: "there are mountains, waters and saints", which is not only a resource advantage, but also an interesting advantage. Shandong has obvious geographical advantages. It is close to the high-end markets of Beijing, Tianjin and Shanghai. It is only an hour's drive from Beijing to Jinan by high-speed rail. "It is very convenient for Shandong to have a special dinner and go back to Beijing to sleep." Jiang Changyun said that Shandong's service industry can be extended to Beijing, and taking the initiative to connect with the high-end market can bring huge benefits. In view of the current situation of Shandong's service industry, researcher Jiang Changyun put forward many constructive suggestions. He said that the development of Shandong's service industry should focus on industrial development. Shandong's agriculture and manufacturing industries are relatively developed, and agricultural industrialization is in the forefront of the country. It can vigorously develop technology and art design, leisure agriculture, tourism industry, experience leisure and other industries. Shandong has a high level of agricultural modernization, and agricultural modernization is actually the modernization of the agricultural service industry. Without the injection of services, agriculture is still the original ecological agriculture. If farmland production is combined with agricultural materials services, agronomy, seed industry research and development, and agricultural machinery services, many industries will be derived. Another example is food production. With the improvement of living standards, food is developing towards gourmet, nutritious, personalized, convenient, and functional development, which will bring about a series of industrial changes and the industrial chain will extend indefinitely. Jiang Changyun also suggested that Shandong's service industry should not only take advantage of the momentum to develop, but also create momentum to improve. We should not only be indomitable large enterprises, overwhelming small and medium-sized enterprises, but also innovative enterprises. Through the introduction of large enterprises and large projects, we can take advantage of the development and enhance the local rooting of the industrial chain. Original title [NDRC researcher talks about Shandong service industry: there are mountains, water and saints]]
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New book published by Vice President Cheng GuoqiangThe new book "Global Agricultural Strategy: China's Food Security Framework Based on Global Vision" by Cheng Guoqiang, Vice President of the Association, was published by China Development Press in June 2013. (Responsible editor: Shixin)
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Zhu Lizhi: Creating a Good Soft Environment for the Moderate Scale Development of Family FarmsModerate scale development for family farms create a good soft environment -- Based on the 12-year exploration of family farms in Langxi County zhu Lizhi recently, with the interest and confusion of family farms, the author investigated Langxi County, Anhui Province, which took the lead in exploring the series of family farms in the country. Langxi County is located in Nanjing, Wuhu, Ma'anshan and other cities cross radiation, with a large number of farmers into the city, the field idle phenomenon is serious. Therefore, for a long time, the local government has attached great importance to the development of family farms and rich farmers with "farmers" to solve the big problem of who will farm and how to plant good land. 1. How to correctly understand the "moderate scale operation" of agriculture" in the investigation of family farms in Langxi County, the author found that "moderate scale operation" is not only an economic category, but also a sociological category, involving the comparison of urban and rural development and population transfer. The author believes that if the scale of a farmer's operation reaches a certain level, so that its per capita net income is equal to the per capita disposable income of nearby urban residents, such scale operation is "moderate scale operation". Because only in this way, the opportunity cost of rural labor transfer is large enough to offset the return of its employment in cities and towns, so that agricultural operators can stay in the countryside with peace of mind. In fact, there is no contradiction between letting agricultural operators stay in the countryside and the transfer of rural labor. Moreover, if agricultural operators want to obtain a moderate scale of land, an important prerequisite is the transfer of rural labor. Only a certain number of rural labor force transferred to cities and towns, in order to ensure that the land to agricultural management experts concentrated. On the other hand, only agricultural operators can first make their per capita net income equal to the per capita disposable income of nearby urban residents, and reach the level of moderate scale operation. "Who will plant the land? How to plant the land?" is the key issue facing China's agricultural development in the new era, and it is also the issue that the government is most concerned about, and the appropriate scale of agricultural management is the key to solve this problem. Letting agricultural business experts stay in the countryside not only solves the problem of "who will plant the land", but also solves the problem of "how to plant good land. It should be noted that "moderate scale" here does not mean "large scale". Due to the large number of agricultural labor force in China, a considerable number of agricultural labor force should stay in rural areas to engage in agriculture at this stage, and the "large-scale" operation of agriculture is not in line with China's national conditions. Therefore, simply from the perspective of cost-benefit analysis to pursue the "best scale", will eventually come to the agricultural management model should be developed in the direction of "large-scale", which is not feasible in China. Scholars generally believe that the so-called "moderate scale" is "moderate" relative to different places ". This sounds reasonable, but it doesn't give an answer. It's like saying "this thing should be done well", but how to do it well only gives some principled requirements, but does not give the criteria for judging. It is true that the "moderate scale" in the plains must be large, but we cannot conclude that the plains must engage in "large-scale" agriculture. Since the disadvantages of large-scale agriculture in developed countries are becoming more and more obvious, and China has a large agricultural labor force, the government should not blindly encourage "large-scale" agriculture even in plain areas. Correspondingly, it is difficult to "moderate scale" in mountainous areas, but we have to engage in "moderate scale". On the contrary, we must vigorously promote the characteristic "moderate scale" operation in mountainous areas, so that the agricultural industry in mountainous areas can also retain capable people, and there is hope for agriculture in mountainous areas. Successful practices and problems of moderate scale family farms in Langxi County, 2. The family farm in Langxi County has made a long-term exploration in the direction of moderate scale operation, and has carried out all-round practice in land circulation, registration, financing mechanism, industrial management, farm associations and farm cooperatives and other measures to promote moderate scale operation. Their successful exploration tells us that family farms operated on a moderate scale can effectively solve the problem of who farms and how to plant well, ensure that land operators get the same income as urban residents, and more actively use new varieties and new technologies. It can better carry out diversified agricultural production suitable for itself according to market demand, and play a greater role in demonstrating and guiding the production of scattered small-scale farmers. Counting from the first family farm "Lvfeng Family Farm" in June 2001, the family farm in Langxi County has developed for nearly twelve years, showing a scene of prosperity. According to the survey in March this year, 554 family farms in the county operate 129196 mu of land, with an average of 223 mu/household, of which 3% are owned land and 97% are leased and transferred land. In terms of operating income, according to a survey of 216 family farms in 2012, the per capita net income was 28910 yuan, which was four times the per capita net income of farmers in the county that year, and was basically equal to the per capita disposable income of nearby urban residents. In the investigation of family farms in Langxi County, the author found that there are many problems faced by family farms at present, which are mainly manifested in the fact that the status and rights of management subjects can not be generally recognized, the agricultural infrastructure is poor, the land circulation is not standardized, the benefit distribution mechanism related to cultivated land is unreasonable, the financing channels are not smooth, the production and operation management is extensive, and the scope of agricultural insurance is too small. 3. Suggestions on Optimizing Soft Environment for Moderate Scale Development of Family Farms summarizing the main successful experiences and existing problems, the author puts forward the following policy measures: (I) standardize the land transfer rules. It is necessary to strengthen the formulation and management of land transfer policies, guide farmers to sign transfer contracts in accordance with unified standard texts, and eliminate the unstable phenomenon caused by farmers transferring land at will. (II) implementation of the access system. Establish a registration system to make family farms a market entity with legal personality. The family farm operator must operate the transferred land on his own, and shall not subcontract the land to others for operation and become the operator of the land. (III) let the policy of benefiting farmers really benefit farmers. It is necessary to allow various agricultural subsidies to directly supply the actual operators without being intercepted by the original contractors, so as to speed up the original accumulation and infrastructure construction of family farms. (IV) innovative financial service mechanism. Village banks with better conditions should be incorporated into the professional financial system and preferential policies should be formulated. In addition, we should actively explore mutual aid models for family farms, such as mutual aid for funds and mutual aid for loan guarantees. (V) strengthen the cultivation of modern farmers. It is necessary to strengthen management training so that they can understand both production and management, achieve standardized production and standardized management, and focus on cost accounting and production records. (VI) improve the agricultural insurance system. It is mainly aimed at the existing agricultural insurance problems, the insurance coverage can not cover the main areas of agricultural production, and there is discrimination against farmers in post-disaster compliance. (VII) strengthen brand creation. Brand creation and "three products and one standard" certification are carried out in the form of family farm associations. Under the condition of abiding by the rules, family farms are allowed to be used free of charge, so as to achieve a unified brand, unified certification, unified management and joint efforts throughout the county.
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Zhu Lizhi: Cold Thinking Behind the "Continuous Increase in Grain"Cold thinking behind the "continuous increase in grain" zhu Lizhi the Cost of Resources and Environment in the 1. of "Continuous Grain Increase" the continuous growth of food for many years should indeed be a joy for a country with a large population like ours. However, we must also see how much resource and environmental costs we have paid behind the "continuous increase in grain. In order to make every effort to increase grain production, China applies a large number of chemical fertilizers and pesticides every year, which leads to the aggravation of agricultural non-point source pollution year by year. What is even more frightening is that the grain production promoted by chemical fertilizers has drained the organic matter of the land; the grain production guaranteed by pesticides has injected more and more toxins into the land. As early as more than three centuries ago, the British economist Pi said: "Land is the mother of wealth, and labor is the father of wealth." This sentence, especially for Chinese people who have a small per capita land area, should always be kept in mind. It is hard to imagine how far our "continuous increase in grain" can go on the road of predatory land management. Now is the time for us to come up with a great wisdom of food development strategy. 2. "storing grain in the ground" and changing the way of increasing grain to solve the problem of long-term sustainable development of food, although it involves many aspects, the author believes that the focus should be on the land: the problem of low soil organic matter must be solved, the soil aggregate structure must be restored, and toxic components in the soil must be reduced...... Once the soil problem is solved, even if the growth rate of grain is small, it is not terrible at all, because "the grain is hidden in the ground, and the heart is not panic." to solve the problem of soil, the author thinks that the best way is to vigorously develop circular agriculture. The material circulation system in agriculture is like the human blood circulation system. If this system is blocked, people will not be healthy. Similarly, if circular agriculture is not done well, it is impossible for agriculture to develop healthily and sustainably. All places are doing agriculture with noses and eyes, but whether this noses and eyes agriculture is healthy or not depends on its appearance. It depends on its "blood circulation system", that is, whether there is a problem with its material circulation system, for example, Whether the straw is recycled, whether the livestock and poultry manure is recycled. If we do a good job in the article of circular agriculture, the "blood circulation system" of agriculture will be sound, the organic matter content of the soil will continue to increase, the physical and chemical properties of the soil will become better and better, and the quality of cultivated land will be solved. In such good land, food is bound to grow sustainably. In other words, if we do a good job in the article of "storing grain in the land", we can constantly take grain from the land. 3. division "relative fallow", take the road of macro-grain increase. The emphasis on steady food growth cannot be interpreted as an annual increase in food production in all regions. There is a difference between growth and development, argues Mattia Sen, a Nobel laureate in economics. Growth in the wrong place and at the wrong time can undermine sustainable development. The author believes that although we cannot implement the cultivated land fallow system like western countries, we can implement "relative fallow" on some cultivated land, that is, we can allow no increase in grain production or even a certain amount of reduction in grain production on these cultivated land, as long as it does not endanger the overall macro grain increase plan of the country (in fact, this grain increase plan can also be discounted, at least it can be adjusted between years). For example, "relative fallow" was implemented in areas outside the 13 major food-producing provinces and in non-major food-producing counties within the major food-producing provinces ". "Relative fallow" is not permanent. When the production capacity of cultivated land in these areas is restored to a certain extent, it will inevitably make a great contribution to the growth of grain, and even partially replace the main grain producing areas, so that the main grain producing areas can make time to carry out local rotation of "relative fallow". We advocate rotational grazing on the grassland, which accounts for more than 40% of the land area, so that the grassland can be cultivated and nourishing. Can't we let the scarce and precious cultivated land, which accounts for about 10% of the land area, "take a breath? Make 4. use of international resources to ease domestic pressure it should be said that there is potential for China to import grain through international trade. As for how big it is, everyone has different views. I personally believe that we cannot always regard "responsible powers" as "responsible powers" and should play a positive role in "the stability of the international food market. Imagine that if my country's food cannot grow sustainably for a long time, it cannot be said to be a "big country in charge". After all, our population and area account for a large proportion of the world, and we are responsible for China and are the first to be a "responsible big country". Should be considered. Look at other countries. Japan, for example, is desperately importing all resources. Coal and some important minerals are buried in the ground after being imported, and even timber is imported to accumulate stocks. Looking at how the United States and Europe treat food, according to statistics from the U.S. Department of Agriculture, the U.S. consumed more than 90 million tons of corn to produce ethanol fuel in 2008, accounting for 30% of its corn production that year, which can be eaten by 0.5 billion people for one year. According to the plan, by 2030, the United States will produce 0.127 billion tons of corn for ethanol fuel. In order to achieve sustainable development, Europe has made great efforts to develop biodiesel by using rapeseed, soybean and other raw materials. In 2007, the EU produced about 8 million tons of biodiesel. In 2010, the production capacity of biodiesel reached 13.5 million tons, equivalent to consuming 15 million tons of vegetable oil, which can be consumed by 0.8 billion people for one year. The result of the development and utilization of grain and oil-based biomass energy is that "the cars of the rich eat the bread of the poor", but Europe and the United States promote local sustainable development in this way. But at the same time, our country is spending a lot of treasury to buy European and American government bonds. Another aspect of making good use of international resources is to carry out agricultural development on other people's land. From the current point of view, our process in Africa is not ideal. We think that "I have the technology and you have the resources". However, in Africa, people are the biggest constraint. How to solve it requires a higher level. Top-level design. In addition, in South America, Russia and other countries, our cooperation mechanism must be innovated, and scientific strategic thinking is urgently needed. 5. the development of "three-dimensional grain" strategy to supplement the shortage of "cultivated land grain" in the future, China's grain development should take the "three-dimensional grain" strategy of "cultivated land grain" as the main and "mountain and water grain" as the supplement, and change the single "cultivated land grain" pattern, which can not only improve China's food security, but also reduce the pressure on valuable cultivated land resources. China has vast waters and vast mountains, but in the food category, aquatic plant starch has been ignored, and the production potential of mountain forest plant starch has not been fully utilized. During the three years of natural disasters, farmers at the water's edge and in the mountains basically relied on these non-arable grain to survive. In normal years, we immediately forgot these precious grain resources. Aquatic plant starch and mountain forest plant starch in China not only has great potential, but also has many health functions, which is a kind of healthy food starch. For example, pueraria starch is not only rich in carbohydrates and crude protein, but also contains isoflavone pentapuerarin, puerarin xycoside, daidzein, arachidic acid and other ingredients. Banana taro, also known as banana lotus root, ginger taro and konjac, has very strong vitality. The roots and tubers remaining in the soil after being harvested in winter can sprout and multiply in the following year. Its starch is rich in nutrition and does not contain fat. It is a suitable food for all ages. Fern root, also known as bracken and Wuluo, is widely distributed in the world. Barren hills all over our country grow. Its rootlike stems and vines grow in the soil and contain 30%-35% starch. It has the effects of strengthening body, health and cancer prevention. Acorn is the fruit of the oak tree in the mountains, also known as oak and millet, and its starch flavor is unique. The cakes and snacks made with it are very popular with consumers. Every 100 grams of wild lily contains 28.7 grams of carbohydrates, 4 grams of crude protein, 1 gram of crude fat, vitamins, carotene, pantothenic acid, colchicine, etc. Its starch is a food with high economic value. Mountains, waters, fields, and forests are the source of food everywhere, and the development of a "three-dimensional food" strategy will be promising.
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Zhu Lizhi: Inclusive Development Should Take the Road of "Ecological Poverty Reduction"Inclusive Development Should Take the Road of Ecological Poverty Reduction zhu Lizhi "Inclusive Development and Poverty Reduction" is the theme of the 2012 10.17 High-level Forum on Poverty Reduction and Development. The forum was hosted by the Poverty Alleviation Office of the State Council and the United Nations system in China, and Vice Premier Hui Liangyu attended the forum and delivered an opening speech, fan Xiaojian, Director of the Poverty Alleviation Office of the State Council of China, Professor of Harvard University (Thomas W. Lamont University) (1998 Nobel Prize winner in Economics) Amartya Sen (Amartya Sen), Assistant Director-General of FAO's Social and Economic Development Department Jomo Sundaram (Jomo) and Sir Richard Jerry (Richard Jolly), Emeritus Professor of the University of Sussex's Institute of Development, delivered keynote speeches. The following is an article sorted out according to the author's comments. 1. a comprehensive understanding of inclusive development according to Professor Amartya Sen, inclusive development is about dealing with the difference between growth and development. In order to better understand Amartya Sen's point of view, the author changed the perspective of the analysis. The author believes that according to the theory of externality, the growth of industry, cities and some developed regions has produced many negative externalities, which have a great adverse impact on poor areas. It can be said that inclusive development is to internalize the mutual externalities between different industries, different regions and different levels of people caused by simple growth, so as to achieve common development. We all know that a person grows fast, but he can't do it if he is not healthy. In addition, all parts of a person's body should be symmetrical, and the legs should not be very developed, but the arms are very thin. Inclusive development should not only pay attention to growth, let alone local growth, but also pay attention to internal health and coordination. Take the agricultural product industry chain as an example. It cannot be very detailed in the production of agricultural products, but other links are very thick. Such an industrial chain not only cannot stimulate the common development of rural areas, but the entire industrial chain will be broken after a long time. This crisis is already on display in some places. Therefore, even if it is an industrial chain, we should not only focus on growth, but also pay attention to the coordination and symmetry of all links in the chain, that is to say, we should pay attention to inclusive development. On the one hand, through poverty alleviation and development, China can reduce the poverty problem caused by the non inclusive system in the past, and strive to pay off the old debts as soon as possible; on the other hand, it strives to innovate and improve the system and mechanism to reduce the possibility of poor people in the future. This shows that the Chinese government has recognized that the non-inclusive system is the main reason for the emergence of poor people. In economics, there is also a Kaldor-Hicks improvement to the theory of regressive optimality, that is, in the process of social resource allocation, if those who benefit from the process of resource reallocation, as long as their increased benefits compensate for the benefits of those who suffer losses in the process of resource reallocation, this kind of resource allocation is efficient. In addition, from the theory of diminishing marginal benefits, the social benefit rate of funds in poor areas will be higher than in other areas. For example, a road, a library ......, placed in poor areas than in non-poor areas will produce better results. Based on theoretical analysis and practical exploration, the Chinese government has noticed that social resources should be tilted to poor areas, and a large amount of funds should be spread in poor areas through specific projects. It is the same between countries. Since the beginning of the 21st century, the world economy has achieved considerable growth, but the inequality of income and development opportunities in many countries and regions has continued to deepen. With the in-depth development of globalization and urbanization, especially after the outbreak of the international financial crisis and the European debt crisis, the widening gap between the rich and the poor and the uneven development have gradually evolved into a common phenomenon in the world, leading to a series of conflicts around the world. Some scholars see growing inequality as the greatest challenge for the future of human society. More and more people are calling for expanding social inclusion and promoting inclusive development as the basic strategy to deal with this serious challenge. Inclusive development is put forward as a countermeasure, emphasizing the establishment of an inclusive system, providing a wide range of opportunities, eliminating the rights, poverty and social exclusion faced by the poor, achieving equal opportunities and fair participation, so that all groups, including the poor, can participate in economic growth, contribute to it, and can reasonably share the results, so as to achieve everyone's own all-round development (Long Chaoyang, 2012). It can be seen that equality of opportunity and sharing of results are the core connotation of inclusive development. "Inclusion" is the basic requirement for the process and results of economic growth. Specifically, it has three meanings: First, economic growth should benefit all people, especially the poor. This is an important goal of inclusive development and a necessary condition for achieving sustained poverty reduction. The second is to let everyone face the development opportunity equally. This is the institutional guarantee for inclusive development, and it can also fully stimulate the enthusiasm of all social strata and improve the efficiency of economic growth. The third is to improve individual development capabilities in the process of participating in economic growth to ensure the sustainability of poverty reduction. 2. Ecologically Fragile Areas-The Core Fortress of China's Poverty Alleviation ecologically, the ecologically fragile zone refers to the transitional area at the junction of two different types of ecosystems. The ecological fragile area has poor ecosystem structure stability, weak anti-interference ability, low ecological carrying capacity and easy to be destroyed, which is the key area of ecological protection. In this paper, it refers to the area where the change of ecological environment or human production and life will cause the obvious decline or even disappearance of land productivity, which will lead to serious economic recession (Chen Jiansheng, 2008). China's ecologically fragile areas are mainly distributed in the northern arid and semi-arid areas, the southern hilly areas, the southwestern mountains, the Qinghai-Tibet Plateau and the eastern coastal water-land junction areas (Ministry of Environmental Protection, 2008). The ecologically fragile area is highly overlapped with the concentrated contiguous areas with special difficulties. It is the most concentrated area of poverty and the main target area of poverty alleviation work. Natural disasters occur frequently in ecologically fragile areas, the ability to prevent and resist disasters is insufficient, and the carrying capacity for economic growth and social development is low. It is very difficult to reduce poverty and stabilize poverty. From the founding of New China to the early stage of reform and opening up, poverty was a common phenomenon in China. Driven by a series of reform measures such as household contract with output, China's rural economy has developed rapidly and poverty has been greatly alleviated. However, there are still some areas that have not been able to get rid of poverty, and it is difficult to maintain even the most basic survival needs. With the gradual reduction of the poor population, the regional characteristics of poverty are becoming more and more obvious, and the problem of poverty in ecologically fragile areas has attracted widespread attention. A study at the end of the last century showed that about 75.92 per cent of the counties classified as ecologically fragile areas were classified as poor; about 43.33 per cent of the land area classified as ecologically fragile areas was within the scope of poor counties; about 67.96 per cent of the cultivated land classified as ecologically fragile areas was within the scope of poor counties; and about 75.86 per cent of the population classified as ecologically fragile areas lived in poor counties (Li Zhou, 1994). It can be seen that the correlation between poverty and ecological fragility in China is high, and the poor population in ecologically fragile areas is relatively concentrated. In recent years, with the deepening of rural reforms and the continuous increase in poverty alleviation and development, the geographical characteristics of the distribution of the poor population have become increasingly obvious, concentrated in the deep mountainous areas, stone mountainous areas, desert areas, alpine mountainous areas, and Loess Plateau areas in the central and western regions., High-incidence areas of endemic diseases and reservoir areas, and most of them are old revolutionary areas, minority areas and border areas. According to the monitoring of the National Bureau of Statistics, in 2009, 65.9 per cent of the country's poor were distributed in the western region; the incidence of poverty in the eastern, central and western regions was 0.5 per cent, 3.3 per cent and 8.3 per cent, respectively. Seven western provinces (regions), including Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai and Xinjiang, had a relatively high incidence of poverty (all exceeding 5 per cent). Obviously, these are the so-called ecologically fragile areas. Their common characteristics are: remote location, inconvenient infrastructure, ecological imbalance, slow economic development, backward culture and education, difficult drinking water for humans and animals, and extremely poor production and living conditions. 3. Ecological Poverty Reduction -- The Inevitable Choice of Inclusive Poverty Reduction at present, China is implementing a new round of poverty alleviation and development plans. The targets of poverty alleviation are mainly ecological poor people. Poverty alleviation and development have shifted from the stage of solving food and clothing as the main task to consolidating the results of food and clothing, accelerating poverty alleviation and prosperity, improving the ecological environment, and improving development. Ability to narrow the development gap. In a sense, the problem of poverty in ecologically fragile areas is an ecological problem, and the occurrence and degree of poverty are closely related to the ecological environment (Liu Yanmei, 2005). Therefore, the inclusive poverty reduction strategy in ecologically fragile areas must start with improving the ecological environment, increasing the carrying capacity of regional resources and environment, coordinating ecological improvement and poverty reduction goals, and implementing ecological poverty reduction strategies. The so-called ecological poverty reduction is aimed at the predatory poverty reduction and development of resources and environment, that is, by protecting and restoring the ecological environment of poor areas, changing the mode of economic development in poor areas, and ending the vicious circle of poverty and ecological destruction. taking into account the strategic goal of ecological improvement and poverty reduction, it is a poverty alleviation and development model aimed at ecologically poor areas and drawing lessons from the concept of inclusive development. Considering the problems existing in the past ecological projects, such as the low participation of residents in the project area, the restriction of economic development by ecological protection policies, and the difficulty of benefiting the poor population from the results of ecological improvement, and taking into account the characteristics of China's current poverty alleviation work, we believe that the ecological poverty reduction strategy should include the following points: improvement of (I) ecology is the foundation of poverty control and development the bottleneck of economic and social development in ecologically fragile areas lies in the low carrying capacity of resources and environment. Rational use of resources and improvement of ecological environment are the only way to achieve regional sustainable development. There are many causes of poverty in ecologically fragile areas, including income poverty with insufficient access to resources, capacity poverty with low development capacity, and rights poverty caused by long-term inequality of opportunities. In the process of ecological deterioration, the poor suffer more losses and suffer more directly than the rich, because ecological deterioration will further compress the living space of the poor, make them have less access to resources and development opportunities, and deepen the degree of poverty. In other words, ecological improvement is the fundamental measure to alleviate poverty. In the absence of continuous ecological improvement, "blood transfusion" poverty alleviation can only maintain the survival of the poor at a lower level, but the government will carry a heavy burden for a long time, which is inefficient and unsustainable. The way of poverty alleviation; "development-oriented" poverty alleviation may continue to destroy the ecological environment and fall into a vicious circle of poverty and ecological destruction. Before the carrying capacity of resources and environment in ecologically fragile areas is not significantly improved, the means to reduce poverty and promote economic growth and regional development will be water without a source and without a stable foundation. Equal participation of the (II) poor is a prerequisite for sustainable ecological improvement. Intuitively, the reason for the occurrence of ecological poverty is that the population pressure is too large, which leads to the continuous destruction of the ecological environment and the deterioration of the ecological environment, but the deeper reason is the existence of "policy defects". It is an unfair policy that excludes part of the population with poor development capacity from the development process, resulting in the aggravation of regional development imbalance. It is precisely because of the fear that the participation of the poor will affect the effect of ecological improvement. In large-scale ecological construction projects such as natural protection projects, wildlife protection and nature reserve construction projects, local residents are often regarded as the burden of project construction. Arrange subsidy funds to solve their livelihood problems; residents also naturally regard ecological projects as poverty alleviation projects and demand compensation for the losses caused by the interference of project construction on their economic activities. Obviously, the exclusion of residents from ecological construction projects will increase the cost of project construction, but it can not fundamentally reduce the pressure of local population survival and development on resources and environment, which is caused by the lack of inclusiveness of engineering policies. To implement the ecological poverty reduction strategy, the most important thing is to base on regional resources, including natural and human resources, fully mobilize all positive factors, strive to improve the ecological environment, and build a solid foundation for poverty reduction and development in ecologically fragile areas. In fact, the poor are more active in improving the ecological environment, because they are the direct victims of ecological deterioration, and they hope to expand their own development space and enhance their development ability from the continuous improvement of ecology, so they are the lasting driving force of regional ecological improvement. (III) Eco-economy as a Driving Force for Ecological Improvement and Poverty Reduction rapid economic growth is a necessary condition for poverty reduction and a central driver for ecological improvement. The economic development of ecologically fragile areas must first start with improving the ecological environment, giving priority to the development of ecological industries and making them the pillar industries of ecologically fragile areas. The construction process of ecological economy is the process of economic structure transformation and production and life style transformation in ecological poverty-stricken areas to protect and build the ecological environment in poverty-stricken areas (Huang Songwen, 2004). The development of ecological economy will not directly damage the regional ecological environment, and the dependence on the direct consumption of natural resources is low. It is a sunrise industry suitable for the development of ecologically fragile areas. The advantage of ecologically fragile areas lies in their characteristic products and landscape resources. Relying on these characteristic resources to develop ecological economy can promote regional employment, and have competitive advantages. It can attract foreign investment. It is an economic development that takes into account the goals of promoting regional economic growth and ecological environmental protection. way. There are many ecological industries that can be developed in ecologically fragile areas, such as ecological agriculture, agriculture, forestry and animal husbandry, eco-tourism, etc., which are suitable for the participation of the poor, quick results in poverty alleviation and beneficial to ecological improvement. (IV) Ecological Compensation is the Feedback of Ecological Improvement Achievement Sharing the deterioration of the ecological environment in ecologically fragile areas not only leads to local poverty, but also spreads throughout the ecosystem. If the deteriorating ecological environment is not managed in time, under the action of various natural forces (wind, water flow), it will inevitably lead to the destruction and deterioration of the surrounding ecological environment. At present, China's ecological projects mainly solve the ecological problems of national or key areas, such as the project of returning farmland to forest and the project of controlling the source of wind and sand in Beijing and Tianjin. The positive externality of ecological improvement in the project area to the surrounding areas is very obvious. As an ecological barrier, ecologically fragile areas should be compensated, as a feedback for the surrounding areas to share good ecological services, and also a support for ecological governance in ecologically fragile areas. Ecological compensation is an economic means to balance the interests of ecological protection related subjects, and it is also an important part of ecological poverty alleviation strategy. It is the guarantee for ecologically fragile areas to benefit directly from ecological protection and ecological improvement, and it is the basic requirement of inclusive development. China's ecological compensation mechanism is still in its infancy, with central financial investment as the mainstay, symbolically subsidizing forests, grasslands and wetlands that are important in ecological locations. Therefore, ecological compensation can be used as a key area for the exploration of ecological poverty alleviation strategies. Through the establishment of ecological compensation mechanisms at different levels, ecologically fragile areas can obtain external economic support, further promote the improvement of the ecological environment, and better achieve inclusive development.