The Third Plenary Session of the 17th CPC Central Committee

The Communist Party of China (CPC) issued a landmark policy document on October 19 to allow farmers to "lease their contracted farmland or transfer their land-use rights" to boost the scale of operation for farm production and provide funds for them to start new businesses.

The Decision on Major Issues Concerning Rural Reform and Development was approved on October 12 at the Third Plenary Session of the 17th CPC Central Committee.

According to the full text of the document, markets for the lease of contracted farmland and transfer of farmland use rights shall be set up and improved to allow farmers to sub-contract, lease, exchange and swap their land use rights, or join share-holding entities with their farmland.

According to domestic law, farmland is collectively owned, but meted out to farmers in small plots on long-term leasing contracts. The new measures adopted are seen by economists as a major breakthrough in land reforms initiated by late leader Deng Xiaoping 30 years ago, which will provide farmers with opportunities to conduct scale management and initiate new business operations.

(NO. 44 OCTOBER 30, 2008)