Low efficiency of land management and reform of land reclamation to promote the development of agricultural modernization

Vice Premier Wang Yang said in a post on People's Daily on the 16th that it is necessary to vigorously promote agricultural modernization with the new concept of development and strengthen the leading role of land reclamation in the process of modernization. The meeting of the Central Deep Reform Group held on October 13 examined and adopted the document "opinions on further promoting the Reform and Development of Land Reclamation". The meeting pointed out that it is necessary to steadily promote the reform of land reclamation, take the collectivization of reclamation areas and the reform of farm enterprises as the main line, rely on innovation-driven, speed up the transformation of the mode of economic development, promote the integration of resources and assets, and the optimization and upgrading of industries, and play a leading role in the construction of modern agriculture.

At present, the land reclamation system is rich in land resources, but the management efficiency is low, and there is no distinction between society and enterprises in the reclamation area, so reducing the social burden of the land reclamation system, invigorating the stock of assets and accelerating land transfer may become the key direction of the follow-up reform. The agency believes that with the strong support of the policy, the land reclamation industry is expected to usher in the opportunity for rapid development.

Data show that China's land reclamation system is rich in land resources. There are 34 reclamation areas in the country, with a total area of 540 million mu of state-owned land, accounting for 3.7% of the national land area. The land reclamation system has 1779 state-owned farms, 13.52 million people, more than 3200 state-owned and state-controlled enterprises, and more than 760 billion state-owned assets. In terms of output value, the total output value of the national land reclamation system exceeded 650 billion yuan last year.

The low efficiency of land reclamation system in China hinders the development of agricultural industry. Among them, the land property rights are not clear, the land transfer market is not perfect; the confirmation of rights has not been completed, the regulations on land transfer are not unified; the operational efficiency of enterprises is low, and the management mechanism needs to be further marketed. The loss rate of state-owned enterprises in the land reclamation system reached 21.22%, much higher than the 8.20% of non-state-owned enterprises. The indicators of sales gross profit rate, period expense rate and sales profit margin all reflect the low operation efficiency of state-owned enterprises in the land reclamation system.

In order to speed up the reform of the land reclamation system and help the construction of agricultural modernization. On October 13th, General Secretary Xi Jinping presided over the 17th meeting of the Central Deep Reform Group to examine and adopt documents such as the "opinions on further promoting the Reform and Development of Land Reclamation." The meeting pointed out: to promote the reform and development of land reclamation, we must adhere to the direction of socialist market economic reform, separate government from enterprises and social enterprises, and take ensuring national food security and the effective supply of important agricultural products as the core. Take promoting the collectivization of reclamation areas and the reform of farm enterprises as the main line. Driven by innovation, we will speed up the transformation of the mode of economic development and promote the integration of resources and assets and the optimization and upgrading of industries. Build large bases, enterprises and industries of modern agriculture, comprehensively enhance endogenous power, development vitality, and overall strength, and play a leading role in the construction of modern agriculture.

With the gradual implementation of the follow-up supporting policies, the enterprises of land reclamation system will usher in a new round of development opportunities. The improvement of land value brought about by large-scale operation and the securitization rate brought about by asset injection will improve the profitability of relevant enterprises.

As for the company, the Beidahuang business model is land contracting, which has gradually completed the divestiture of loss-making assets since last year, and is currently promoting the employee stock ownership plan. It owns 13 million mu of land resources, which is the only listing platform for Heilongjiang land reclamation. It will fully benefit from the dividend of land reclamation reform in the future, and the asset injection is expected to be strong. Yasheng Group is engaged in agricultural cultivation such as alfalfa, with a land area of 3.42 million mu. The company is actively exploring the unified scale management model of the farm and developing into modern large-scale agricultural enterprises. Hainan rubber is the largest natural rubber production enterprise in China, the company has more than 3.5 million mu of rubber forest, Hainan land reclamation has a total of more than 10 million mu of land resources, there are further securitization expectations.