China is encouraging the transfer of usage rights for arable land in the countryside to boost farm production. The farmers may plant their own crops on land registered in their names, transfer their land-use rights to other individuals or companies, or retain the rights and lease their contracted farmlands.

The government described the policy in the Decision on Major Issues Concerning the Advancement of Rural Reform and Development, which the 17th Central Committee of Communist Party of China (CPC) approved on October 12 at its Third Plenary Session and publicly announced on October 19.

The new policy encourages some rural areas to meet certain requirements to expand cooperation in agricultural production such as having several big farm contractors, household-based farms or special farming cooperatives.

Xu Xianglin, an expert on agriculture, farmers and countryside-related issues at the Party School of the CPC Central Committee, told Beijing Review that China's agricultural sector could have new opportunities for development if the policy, which allows farmers to lease their contracted land and encourages large-scale farm development, is implemented.

Problems targeted

It was not the first time that the Central Government included the transfer of farmland on its agenda. It mentioned the issue in its No.1 document in 1984, and devoted a whole section of 13 articles in the Law on Land Contract in Rural Areas to the issue, which took effect on March 1, 2003. But afterward, governments at all levels had never seriously addressed the transfer of farmland.

Chen Xiwen, Director of the Office of the Central Leading Group on Rural Work, said at a press conference on October 22 that only about 5 percent of the contracted land-use rights for farmlands were being transferred at present, because a majority of rural households had as little as 0.5 of a hectare of farmland, and farming was not a burden for them.

Then why did the CPC issue such a high-profile document to encourage the transfer of farmland? Chen said the new policy aims to address problems that have affected the efficiency of agricultural production. About 130 million farmers have left the countryside and given up farming to move to towns or find jobs in cities in recent years. Most of those who have remained in the countryside are women and the elderly, which brings many problems to farm production and management, he said.