Document No. 1, 2016, Agriculture will start supply-side Reform

At the beginning of the year, the 2016 Central Committee document No. 1 focusing on the issues of agriculture, rural areas and farmers was about to be promulgated. The reporter learned that the "opinions of the CPC Central Committee and the State Council on implementing the New concept of Development and speeding up Agricultural Modernization to achieve the goal of a well-off Society in an all-round way (discussion draft)" announced at the Central Rural work Conference at the end of last year has been listed as the draft of this year's No. 1 document. Judging from the title, document No. 1 will also focus on agricultural modernization for the fourth year in a row. Compared with the previous two years, this year, adhering to the basic idea of promoting agricultural modernization, we have put forward the goal of implementing a new concept of development and achieving a well-off society in an all-round way.

Prior to this, the state has issued a series of heavyweight agricultural policy documents, covering important issues in the process of agricultural modernization, such as rural e-commerce, land reclamation reform, rural deep reform and so on. Judging from the proposals of the 13th five-year Plan of 31 provinces, autonomous regions and municipalities across the country, all provinces, autonomous regions and municipalities also focus on modernization and actively respond to the new concept of national agricultural development.

"document No. 1 will specifically implement the 13th five-year Plan and put forward the goal of building a well-off society in an all-round way. The construction of modern agriculture should be carried out in accordance with the five major development concepts of innovation, coordination, green, openness, and sharing." Li Guoxiang, a researcher at the Institute of Rural Development of the Chinese Academy of Social Sciences, told reporters that the Central Committee's No. 1 document, to be released in the first year of the 13th five-year Plan, will guide Zhang Benhe for the medium-and long-term development of China's agriculture.

Supply-side reform: agricultural structural adjustment

Major agricultural provinces, including Heilongjiang, Shandong, and Zhejiang, have all set the goal of optimizing the agricultural structure in the 13th five-year Plan, among which Heilongjiang Province will highlight the development of green organic agricultural products and the cultivation of high-quality and efficient crops, and develop contract agriculture.

The reporter learned that "supply-side reform", a concept put forward in resolving industrial overcapacity, will also be applied to agriculture this year.

"similar to the industrial sector, China's agriculture also has the problem of structural overcapacity. The specific performance is that the inventory of agricultural products such as corn and cotton is too high, while soybeans and sugar rely too much on imports, the allocation of production capacity is unreasonable, and farmers often increase their production without increasing their income. " That's what a research newspaper said.

As a matter of fact, the problem of structural surplus of domestic agricultural products should not be underestimated. Last year, due to overcapacity and a large backlog of inventory, market prices fell, and the temporary storage price of corn, which had been implemented for seven years, was lowered to 1 yuan per jin for the first time, and the majority of corn growers were faced with the dilemma of not having a good harvest in a bumper year. the impact is even transmitted to corn processing enterprises, farmers and other terminals in the lower reaches of the industrial chain.

Behind this problem, first of all, the planting structure of corn needs to be adjusted urgently. At the national planting structure adjustment meeting held on December 26 last year, Yu Xinrong, vice minister of agriculture, specifically instructed that all efforts should be made to complete the task of reducing more than 10 million mu of corn in the "sickle bend" area. He pointed out that at present, the development of the planting industry is facing many difficulties and problems, and structural contradictions are even more prominent.

After sorting out the proposals of the 13th five-year Plan, the reporter found that major agricultural provinces, including Heilongjiang, Shandong, and Zhejiang, have all set the goal of optimizing the agricultural structure in the 13th five-year Plan. Shandong Province proposes to deepen the adjustment of agricultural structure and develop exquisite agriculture with high standards, deep integration, long chain, good quality and new ways. Heilongjiang Province will also adhere to the market orientation in the next five years, highlight the development of green organic agricultural products and the cultivation of high-quality and efficient crops, optimize the planting structure, and develop order agriculture.

On the other hand, the problem of structural supply also reflects the chronic illness that the price mechanism of agricultural products in China is not perfect at present. The central rural work conference proposed that it is necessary to improve the price formation mechanism and collection and storage policies of grain and other important agricultural products, so as to provide impetus for agricultural structural reform. In the "opinions of the CPC Central Committee and the State Council on promoting the Reform of the Price Mechanism" issued in October last year, it has been proposed to improve the price formation mechanism of agricultural products. Including continuing to implement and improve the minimum purchase price policy for rice and wheat, reforming and improving the corn procurement and storage system, and continuing to carry out pilot reforms in the target prices of cotton and soybeans.

A source from the Ministry of Agriculture told reporters, "at present, China's spatial layout and policy system around agricultural production have been basically formed, but there will still be great changes in market circulation in the future. This is highly consistent with the requirements put forward at the 2013 Central Rural work Conference to adhere to market-oriented and consumption-oriented development of agriculture."

In addition, in order to truly implement the supply-side structural reform, it is also necessary to improve the quality and efficiency of the agricultural supply system, truly form an effective supply of agricultural products with reasonable structure and strong guarantee, and attach great importance to removing inventory, reducing costs and making up for deficiencies. Xie Gang, an agricultural analyst at Zhongtai Securities, pointed out, "for the agricultural industry, the future transformation direction lies not in scale and pure 'high yield', but in 'reducing production costs, improving agricultural efficiency and competitiveness,' and 'establishing the concept of big agriculture and big food.' horizontal or vertical integration of production chain thinking to improve overall efficiency."

Rural e-commerce: promoting the integration of the three industries

Rural e-commerce has also been included in the focus of the 13th five-year Plan. For example, Sichuan Province has proposed that the average annual growth rate of rural e-commerce transactions should be more than 30%. By 2017, the total transaction volume of rural e-commerce has exceeded 100 billion yuan, and the spring breeze of "Internet +" has also blown into the traditional agricultural field.

In the second half of last year, the state issued three policy documents to increase the size of rural e-commerce, which basically laid the idea for the development of agricultural e-commerce. Various localities have also put rural e-commerce into the focus of the 13th five-year Plan. Under the background of the integration of three industries in rural areas, e-commerce can be used as a coupling link to strengthen the application and promotion of Internet technology in agricultural production, processing, circulation and other links; in folk products, rural tourism and other markets, take e-commerce big data as the guide to promote development.

Hebei Province proposes to vigorously develop "Internet + agriculture" during the 13th five-year Plan period, cultivate a new circulation format with e-commerce as the main means, and achieve full coverage of rural e-commerce service sites. Sichuan Province has proposed that the average annual growth rate of rural e-commerce transaction volume will be more than 30%, and the total rural e-commerce transaction volume will exceed 100 billion yuan by 2017.

At the same time, rural e-commerce will also promote the work of making up for deficiencies in rural areas. At the executive meeting of the State Council held on October 14 last year, Premier Li Keqiang proposed to invest 140 billion yuan to improve rural broadband telecommunications services within five years to cover 98% of administrative villages. The opinions issued later also involve the improvement of the compensation mechanism for universal telecommunications services, the construction of rural information infrastructure and the popularization of broadband, which will effectively strengthen the weak public services and infrastructure construction in rural areas.

In addition, the application of agricultural big data and the Internet of things technology will also promote the development of backward productive forces in rural areas and promote the process of agricultural modernization. In the proposal of the 13th five-year Plan, Tianjin pointed out that it is necessary to promote the expansion of agricultural functions to secondary and tertiary industries, promote the application of new generation information technologies such as the Internet of things and big data in the whole process of agricultural production, and vigorously develop new forms of industry such as cold chain logistics. We will step up efforts to revitalize agriculture through science and technology, speed up the development of modern seed industry and bio-agriculture, and cultivate and strengthen agricultural high-tech industries.

Market participants predict that rural e-commerce and Internet agriculture will become one of the focus of the Central Committee's No. 1 document this year.

Land Reclamation Reform: collectivization Development

Local land reclamation groups have stepped into the fast track of reform. Guangdong Province has proposed to deepen the comprehensive reform of supply and marketing cooperatives and promote the reform and development of land reclamation. Hainan Province has brought the relevant work of the transfer of agricultural reclamation hospitals into the overall planning. For a long time, the land reclamation system, which has a lot of land resources and assets, occupies the special position of "national team" in the national agricultural development pattern. In the No. 1 document of the Central Committee in 2015, land reclamation reform occupied an important space for the first time, and since then the pace of land reclamation reform has been accelerated.

On December 1 last year, the opinions of the CPC Central Committee and the State Council on further promoting the reform and development of land reclamation were formally promulgated, marking the official opening of the reform of land reclamation. Minister of Agriculture Han Changfu also stressed at the recent national land reclamation work conference that we should take the collectivization of reclamation areas and the industrialization of farms as the main line, and strive to build a number of modern agricultural enterprise groups with international competitiveness.

"the reform of land reclamation mainly has two cores, one is the reform of the state-owned property right system in the reclamation area, and the other is the reform of the operation and management system of agricultural reclamation enterprises." Analysts point out. The specific reform measures include promoting the collectivization of reclamation areas, reforming the organizational system and mechanism, building large-scale modern agricultural enterprise groups, reforming the social functions of state-owned farms and adhering to the direction of separating social enterprises from enterprises, and innovating the agricultural operation and management system. actively promote various forms of appropriate-scale operation of agriculture; build a new labor and employment system; improve the social security mechanism; improve the supervision system of state-owned assets Improve the supervision system of state-owned assets and innovate the way of land management.

Under the guidance of the national policy, local land reclamation groups have also stepped into the fast track of reform. In the 13th five-year Plan, Guangdong Province proposed to deepen the comprehensive reform of supply and marketing cooperatives and promote the reform and development of land reclamation. Hainan Province held a special meeting in November last year to integrate the transfer of agricultural reclamation hospitals into the medical and health service system of Hainan Province during the 13th five-year Plan. On December 29 last year, Hainan Land Reclamation Investment holding Group Co., Ltd. was established in Haikou. The company is a wholly state-owned enterprise directly under the provincial government on the basis of the Hainan General Administration of Land Reclamation and the Provincial Land Reclamation Group Co., Ltd. it marks a fundamental change in the system and mechanism of land reclamation in Hainan.

Last year, the total output value of China's land reclamation reached 701.1 billion yuan, and the total grain output reached 72.7 billion jin, an increase of 21.2 percent over 2010. The degree of comprehensive agricultural mechanization reached 87.4 percent, 26 percentage points higher than the national average. It is generally believed in the industry that the land circulation and enterprise restructuring involved in the land reclamation reform will further invigorate the assets and various elements of agricultural reclamation enterprises, release huge reform dividends and enhance the added value of agriculture during the 13th five-year Plan period.