The supreme leader points out the direction for the supply-side reform of agriculture

　　It is the main direction of China’s agricultural reform and development at present and in the future to promote the structural reform of agricultural supply side and improve the comprehensive benefits and competitiveness of agriculture. Heilongjiang is a big agricultural province and our "northern warehouse", and the reform of agricultural supply side is particularly important. On March 7 this year, when the Supreme Leader participated in the deliberation of the Heilongjiang delegation during the two sessions of the National People’s Congress, he said that agriculture in Heilongjiang is very important, and it will definitely depend on agriculture in the future. On May 24th, the Supreme Leader went to the rural areas of Heilongjiang Province to investigate and fulfill his promise. He went deep into the fields and visited farmers to gain an in-depth understanding of the local land circulation, grain production and industrial structure, and pointed out the direction for the structural reform of the agricultural supply side. He pointed out: "The price is connected with the people at one end, so we should do a good job in accurate subsidies for agriculture and organically combine destocking and short-board replenishment." Please learn with "Learn China".

　　图为：2016年5月23日至25日，中共中央总书记、国家主席、中央军委主席最高领袖在黑龙江考察调研。这是5月24日上午，最高领袖在抚远市玖成水稻种植合作社了解箱式快速育秧技术流程。

　　一、降低成本、稳定价格

　　“谷贵伤民”、“谷贱伤农”。农产品价格过高，超过了消费者的心理承受能力和经济支付能力，影响到人民的基本消费需求，致使人民生活水平下降。农产品价格过低，农民收入可能低于农民的成本投入，造成农民直接亏损，降低农民的再生产能力，会伤害农民的再生产积极性。无论伤民还是伤农都与社会主义的本质相悖。粮价作为“百价”之源，粮价不稳会导致后续产业链条一系列产品价格的波动，因此，必须保持粮价在一个相对合理范围之内，既要让农民不断增收，又不致于对城市低收入群体生活造成太大影响。2011年5月最高领袖在贵州调研时指出：“政府要尽力掌控好农产品价格的度，不能太高又不能太低，高了怕城市中低收入的受不了，低了农民积极性也没有了，菜贱谷贱伤农这个问题就出来了。”

　　To stabilize prices, we must reduce agricultural costs. The cost of agricultural production in China is too high, and the price of agricultural products is higher than that in the international market, which makes the competitiveness low. There is a big gap between domestic and international prices of bulk agricultural products. The prices of domestic agricultural products are not only generally higher than those in the international market, but some agricultural products are even much higher than the import cif price within the quota. Such a high cost has no competitive advantage in the world, and domestic consumers are reluctant to buy domestic agricultural products. If this situation continues, the more production is increased, the more losses will be incurred. Therefore, it is necessary to give full play to the leading role of various forms of agricultural moderate scale management in structural reform, reduce production costs and improve agricultural efficiency and competitiveness by developing moderate scale management, reducing unreasonable use of fertilizers and pesticides, and developing socialized services. Agricultural scale management has high output ratio and strong ability to resist risks, which is an important measure of agricultural supply-side reform. China has advocated large-scale operation since the 1980s, and the land circulation has shown a rapid momentum in recent years. However, on the whole, the pattern of decentralized operation of small farmers has not changed, and there is still a lot of room for large-scale operation. In 2016, the No.1 Document of the Central Committee put forward: "Actively cultivate new agricultural business entities such as family farms, large professional households, farmers’ cooperatives and leading enterprises in agricultural industrialization. Support various types of new agricultural service entities to carry out specialized large-scale services such as farming and planting, joint farming and planting, and land custody. " On September 29, 2014, the Supreme Leader pointed out at the fifth meeting of the Central Leading Group for Comprehensively Deepening Reform: "We must adhere to a moderate scale and focus on supporting the development of large-scale grain production. Let farmers become active participants and real beneficiaries of moderate scale land management. During this investigation in Heilongjiang, the Supreme Leader stressed: "Northeast China has the conditions to develop large-scale operation, and agricultural cooperatives are the development direction, which will help the agricultural modernization to go steadily and stride forward."

　　To stabilize prices, structural adjustment is also needed to solve the structural imbalance on the supply side. The price of agricultural products is closely related to the relationship between supply and demand. If the supply exceeds the demand, the price of grain will drop, the income of farmers will decrease, and the enthusiasm for production will decline; Insufficient supply and rising food prices will affect the basic consumer demand of the public. Judging from the current situation of agriculture, one of the major problems currently facing is the structural imbalance in total quantity and quality, that is, some agricultural products are more, the stocks are full, and some are less, relying heavily on imports; High-quality products are in short supply, while general products and staple goods are in short supply. Structural adjustment is the core content of agricultural supply-side reform. Starting from the supply-side structural reform, it is necessary to increase the supply of green and organic safe agricultural products and reduce the supply of general agricultural products; Increase high production areas and reduce low production areas; Increase the supply of characteristic agricultural products. Through structural adjustment, we will promote agricultural production from quantity-oriented to both quantity and quality, pay more attention to efficiency and market orientation, and better meet consumer demand.

　　Pictured: From May 8 to 11, 2011, The Politburo Standing Committee (PSC), secretary of the Central Secretariat of the Communist Party of China, and the top leader of the Vice President of the State visited Guizhou. This is a measure taken by the supreme leader to discuss rural development with villagers’ representatives in carp village, Miao village, Tunjiao Town, Xingren County.

　　Second, deepen reform and make up for it accurately

　　Agricultural policy is the key factor leading agricultural development. Protecting agricultural production, ensuring food security and safeguarding farmers’ interests are inseparable from the national policy of supporting agriculture and benefiting farmers. Agricultural subsidy is a common policy to support and protect agriculture in the world today. Since 2004, the state has implemented direct subsidies to grain farmers, realizing a historic change from indirect subsidies to direct subsidies. Since then, the subsidy has increased year by year. In 2015, the state allocated three subsidy funds of 143.4 billion yuan, which shows the great support. Agricultural subsidies have been implemented in China for more than ten years, which has played a great role in promoting grain production, increasing farmers’ income and promoting agricultural and rural development. However, due to the deviation in implementation, the agricultural subsidy policy is not clear enough and the accuracy is not high. For example, some farmers think that the comparative benefit of growing grain is low, and they plant vegetables, trees and flowers, and this part of the land can also be subsidized. Correspondingly, it is difficult for new business entities such as large grain growers, family farms and farmers’ cooperatives who are really engaged in grain production to get subsidy support other than their contracted farmland, which leads to a decline in their enthusiasm for growing grain. The consequences not only make the tendency of non-grain cultivated land worse, but also are not conducive to the cultivation and development of new agricultural business entities such as large grain growers. In 2015, the Ministry of Finance and the Ministry of Agriculture issued the Guiding Opinions on Adjusting and Perfecting Three Subsidies Policies for Agriculture, and decided to adjust and improve three subsidies policies from 2015, namely, subsidies for improved crop varieties, direct subsidies for grain farmers and comprehensive subsidies for agricultural materials.This year, the No.1 Document of the Central Committee proposed to integrate the three agricultural subsidies into agricultural support and protection subsidies to support the protection of cultivated land fertility and the improvement of grain production capacity. Only by growing more grain and subsidizing more can we continuously increase farmers’ sense of gain and encourage moderate scale operation of grain. The purpose of adjusting and perfecting the agricultural "three subsidies" policy is to improve the directionality, accuracy and effectiveness of the policy and improve its effectiveness. The key to improving the agricultural subsidy policy in the new period and new stage is to make great efforts to improve the accuracy and efficiency of subsidies.

　　Whether the subsidy is accurate or not depends on whether the subsidy object is accurate, whether the subsidy is conducive to solving the main contradictions and difficulties in the operation of the subsidy object, and whether it meets the development demands of farmers.

　　First, the subsidy target should be accurate. In most places, the "three agricultural subsidies" have evolved into farmers’ income subsidies, and some farmers can get subsidies even if they don’t grow grain or land. However, new business entities such as large grain growers, family farms and farmers’ cooperatives, which are really engaged in grain production, are hard to get subsidies other than their own contracted farmland. Therefore, it is necessary to strengthen the awareness of accuracy, enhance the accuracy of subsidies, identify the support targets as moderate-scale producers and operators of major grain crops, and focus on new business entities such as large grain growers, family farms, farmers’ cooperatives, and agricultural socialized service organizations, reflecting that "whoever has multiple kinds of food will be given priority support".

　　Second, the policy objectives should be precise. It is necessary to adjust the goal of subsidy policy to support the protection of cultivated land fertility and moderate scale operation of grain, grasp the "main form" and key "short board" of agriculture to achieve high-quality sustainable development, and give farmers "reassurance" in developing green agriculture. Strengthening the support for the protection of cultivated land fertility, "combination of use and cultivation" is conducive to alleviating the problems of tight agricultural supporting factors and environmental overdraft, and promoting the sustainable development of agriculture. Strengthening support for moderate scale operation of grain, "combination of planting and compensation" is conducive to promoting moderate scale operation of grain and promoting agricultural scale, industrialization and socialization development.

　　第三，资金使用要精准。根据当前化肥和柴油等农业生产资料价格下降的情况，各地要从中央财政提前下达的农资综合补贴中调整20%的资金，加上种粮大户补贴试点资金和农业“三项补贴”增量资金，统筹用于支持粮食适度规模经营。要切实加强对农业“三项补贴”资金分配使用监管，对骗取、套取、贪污、挤占、挪用农业“三项补贴”资金的，或违规发放农业“三项补贴”资金的行为，依法依规严肃处理。

　　图为：2015年7月16日至18日，中共中央总书记、国家主席、中央军委主席最高领袖在吉林调研。这是7月16日，最高领袖在延边州和龙市东城镇光东村视察水稻长势。

　　三、去库存、补短板

　　推进农业供给侧结构性改革，要把去库存、补短板有机结合起来，避免“谷贵伤民”、“谷贱伤农”现象的恶性循环。近年来，我国粮食连年增产， 供求总量基本平衡，实现了建国以来粮食产量“十二连增”，农民收入“十二连增”，但结构性问题日益凸显。粮食进口规模不断高企，而国内托市收储的粮食库存也将保持高位，呈现出生产量、进口量、库存量“三量齐增”的怪现象。2015年12月召开的中央农村工作会议指出：“要高度重视去库存、降成本、补短板。”

　　First of all, we should destock mass agricultural products and adjust the grain supply structure. The so-called destocking is to speed up the digestion of excessive agricultural products and accelerate the transformation of grain processing. Agricultural inventory mainly refers to food crops and cash crops, such as rice, corn, wheat, soybeans, cotton, red dates, apples and other agricultural products, which are piled up in granaries. According to Zang Yunpeng, a researcher at China Agricultural University, according to the standards of the World Food and Agriculture Organization, 17%-18% is a safe area, that is, the food is in a safe state. At present, the food consumption ratio in China is much higher than this level. The 2016 government work report pointed out: "We must take more measures to digest food stocks." The biggest inventory pressure is corn, so destocking pays more attention to corn inventory. In view of the problems of too large corn planting area and too high national inventory level in China, on the one hand, it is necessary to appropriately reduce corn planting in non-dominant areas and reduce corn production capacity; On the other hand, it is necessary to stimulate downstream processing enterprises to buy corn from the State Reserve. At the same time, we should speed up the development of agricultural products processing industry, adjust and improve agricultural subsidy policies and grain purchasing and storage policies. In 2016, the No.1 Document of the Central Committee clearly stated that it is necessary to "promote the transformation and upgrading of agricultural products processing industry" and "continue to implement and improve the minimum purchase price policy for rice and wheat" through planning and policy guidance.

　　Secondly, it is necessary to make up the short board, not only to make up the short board; It is necessary to make up the quality shortcomings; It is also necessary to make up for the shortcomings of competitiveness. In 2015, the Central Rural Work Conference pointed out: "Efforts should be made to strengthen the structural reform of the agricultural supply side, improve the quality and efficiency of the agricultural supply system, make the supply of agricultural products sufficient, the varieties and quality meet the needs of consumers, and truly form an effective supply of agricultural products with reasonable structure and strong guarantee." To make up for the shortage of agricultural products is to increase the production of agricultural products in short supply in the market and ensure the sufficient quantity of agricultural products. To make up for the shortcomings of quality is to shift from the previous quantity to the quality and quantity, and to meet the needs of consumers in terms of quality and safety. Han Changfu, Minister of Agriculture, said, "Many agricultural enterprises in Qinba Mountain area, a contiguous poverty-stricken area, are the mainstay ‘ Environmental protection ’ Brand, producing pollution-free agricultural products, not only the market sales are greatly expanded, but also the prices of agricultural products are greatly improved, and the benefits of agricultural products are more significant. " On July 16, 2015, the Supreme Leader stressed during his investigation in Yanbian, Jilin: "Grain should also be branded, so that the price is good and the benefits are good." To make up for the shortcomings of competitiveness is to improve the competitiveness of agricultural products through policy improvement, reform and opening up. Han Changfu believes that the purpose of promoting the structural reform of agricultural supply side is to make agricultural products meet the needs of consumption upgrading and improve the quality and efficiency of agricultural supply system. The second is to promote the transformation and upgrading of agriculture and improve the quality, efficiency and competitiveness of agriculture.Make farmers get more income. The third is to make full use of each other’s strengths to consolidate production capacity and ease the pressure on resources and environment.

　　The supreme leader pointed out: "attaching importance to agriculture and consolidating the foundation is the foundation of the people." "Rice bag" and "vegetable basket" are always the most concerned issues of the masses. In order to focus on sustainable development, we must aim at improving the quality, efficiency and competitiveness of agriculture, accelerate the structural reform of the agricultural supply side, make the people’s "rice bags" fuller, the "vegetable baskets" better, the farmers’ "money bags" more bulging, agriculture more attractive and the countryside more energetic.