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China vows $17.55b to boost agriculture

(Xinhua)
Updated: 2009-03-05 10:02

BEIJING -- Chinese Premier Wen Jiabao pledged Thursday to add another 120 billion yuan ($17.55 billion) to boost the country's agriculture.

Chinese Premier Wen Jiabao delivers the goverment work report to the Second Session of the 11th National People's Congress at the Great Hall of the People in Beijing February 5, 2009. [Agencies]

Addressing nearly 3,000 lawmakers at the Second Session of the 11th National People's Congress, Wen said in his government work report that central government spending on agriculture, farmers and the rural areas would total 716.1 billion yuan ($104.6 billion) in 2009, a year-on-year increase of 120.6 billion yuan ($17.64 billion).

Calling agriculture the "foundation of the economy", Wen said the investment was part of a package plan to ensure steady and rapid economic development against the global financial crisis.

Full coverage:  NPC and CPPCC 2009 Related readings:  Wen urges unslackened efforts to promote export  China to legalize private lending to ease rural credit pressure  'Grim times for rural earnings'  Subsidies to spur rural spending

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

"We will effectively keep the area planted in grain crops stable, focus on increasing the yield per unit area and optimizing the variety mix, and increase the country's grain production capacity by 50 million tons," he said.

China, with a population of 1.3 billion, is faced with severe challenges in safeguarding grain security due to rising living standards, decreasing arable land, water shortages and climate change.

Continuous drop in economic growth rate due to the impact of the global financial crisis has become a major problem affecting the overall situation, Wen said in the work report.

"It has become more difficult to maintain steady agricultural development and keep rural incomes growing", he admitted.

According to Wen, greater priority would be given to major grain-producing counties in implementing the policies and measures supporting grain production. More financial rewards would be provided to major projects for industrializing grain production.

The country would also raise minimum grain purchase prices "significantly", and keep the prices of agricultural products stable at a reasonable level to encourage farmers to grow more, Wen said.

The Premier further pledged to ensure the existing land contract relationships remain stable and unchanged for a long time to come, and protect the land contract and management rights enjoyed by rural residents, including migrant workers who are away from their home villages.