China just released guidelines that seek to assist small household farmers as part of the government's efforts in pushing for modern agriculture even in rural regions.
According to Xinhua News, the guidelines are expected to help small household farmers in rural areas adapt to modernized farming strategies. The guidelines, released by general offices of the Central Committee of the Chinese government and State Council, are also part of plans to potentially open more opportunities for farmers.
The Communist Party of China (CPC) pledged to improve the country's agricultural services and boost production that will help provide increased income for small household farmers. This particular project is a means of protecting the interests and rights of rural farmers, the government said.
To help household farmers transition to modern agriculture, the Chinese government will offer policy incentives that should expand production. Training will also be provided to introduce new equipment and technology that farmers can utilize.
Beijing's latest move on agriculture came after data revealed that domestic farming sectors in the country have been impacted by declining external conditions. Thus, the State Council, in partnership with the Chinese cabinet, has vowed to help promote modern machinery and infrastructure to improve farming conditions.
Food industry analyst Zhu Danpeng told The Global Times that Beijing's efforts for the agriculture sect will help initiate upgrades in rural regions. "The sector has good products but it is not connected well enough to China's industrial chain, and China's digital sector has not fully expanded into the agricultural sector. This underdevelopment has affected the whole economy, given that urban consumption upgrading is rapidly developing," Zhu noted.
The government has since urged financial institutions to open up to the possibility of offering collateral loans to farming households. Beijing explained that credits can be given to small household farmers whose businesses are sustainable and as long as risks can be managed.
Earlier this month, it was reported that village farmers have started transitioning to modern agricultural machinery such as walking tractors. A new service, machinery rental, is also gaining traction in the Chinese market.
Developed by Lovol Heavy Industry Co. Ltd., an Uber-like mobile application is becoming popular among farmers as it allows for rental of machinery that feature modern technology and processes.
Party Chief of Lovol, Liang Qirong clarified that China's agricultural machinery industry is indeed "big" but it has yet to gain strength in terms of development and competitiveness in the face of global rivals.
