Response From The Ministry of Agriculture And Rural Affairs: The Country Continues To Increase Subsidies for Grain Production, Optimize And Integrate Subsidy Policies To Ensure Food Security

We have received your suggestion to further integrate national grain subsidy projects and increase the amount of grain subsidy funds. After consulting with the Ministry of Finance, our response is as follows:

The Central Committee of the Communist Party of China and the State Council attach great importance to grain production and continue to increase subsidies for grain farmers. At present, the central government has set corresponding subsidies for both actual grain farmers and large-scale grain growers. For actual grain farmers, subsidies for rice production in major rice producing areas, subsidies for corn and soybean producers in Northeast China, subsidies for wheat "one spray, three prevention", subsidies for expanding rapeseed planting, and subsidies for crop rotation and fallow land have been set up for different grain crops, production processes, and agricultural technology promotion applications; To alleviate the impact of rising agricultural input prices on grain production and expenditure, a total of 70 billion yuan in one-time subsidies will be provided to actual grain farmers from 2021 to 2023. While supporting the vast number of grain farmers, we will continuously increase our support for new agricultural management entities such as family farms and farmer cooperatives. Starting from 2023, the central government will establish a separate fund to enhance the capacity of agricultural management entities, increase support for family farms, farmer cooperatives, and cooperatives engaged in grain cultivation, promote the application of advanced technology, improve operating conditions, and enhance large-scale and intensive production capacity; Further implement the action of increasing the yield of grain and oil large-scale planting entities, focusing on key crops such as soybeans and corn, and giving rewards and subsidies to large-scale entities that have implemented key technologies and achieved significant results in improving yield; Continue to support eligible farmers' cooperatives, rural collective economic organizations, professional service companies, and supply and marketing cooperatives to carry out agricultural socialized services, focusing on grain and soybean oil production, and promoting the development of service-oriented large-scale operations.

In order to promote the integration and distribution of subsidies for grain farmers, in 2016, with the approval of the State Council, the central government implemented the "three subsidies in one" reform nationwide, adjusting and merging the original crop quality subsidies, direct subsidies for grain farmers, and comprehensive subsidies for agricultural inputs into agricultural support and protection subsidies, supporting the protection of farmland fertility and moderate scale agricultural operations. Among them, the subsidy for farmland fertility protection can be based on the area of second round contracted farmland, taxable farmland, confirmed farmland, or grain planting area. The specific standards are determined by the provincial people's government in combination with local conditions. Most provinces distribute land based on the area of second round contracted arable land, while some places such as Tianjin, Shanghai, and Shandong distribute land based on the area of grain cultivation. In recent years, the overall scale of subsidies for farmland fertility protection has remained stable. When operating and transferring contracted land, the ownership of this subsidy is often an important consideration factor in determining the transfer price, which is determined through negotiation between both parties.

In terms of subsidy fund distribution, the Ministry of Finance, together with our department and six other departments, continuously strengthens the management of the "one card" system for financial subsidies for the benefit of the people and agriculture. All direct payment of financial subsidies for the benefit of the people and agriculture to households is, in principle, distributed through the "one card" method, and a centralized and unified distribution platform is established to achieve "one platform for distribution" and enhance farmers' sense of obtaining subsidy funds. At the same time, except for the one-time subsidy for grain farmers, which is determined based on the rise in agricultural material prices, the timing and methods of other subsidies issued by the central government are basically the same to reduce the workload of grassroots and enhance the timeliness of subsidy distribution.

Next, our department will work with relevant departments such as the Ministry of Finance to further strengthen the research on grain subsidy policies, continuously increase support and protection for grain production, optimize and improve subsidy policies such as farmland fertility protection subsidies, strengthen the integration and distribution of subsidy funds, continuously improve farmers' enthusiasm for grain cultivation, and provide strong support for ensuring national food security.

Thank you for your concern about our department's work, and we hope to continue to provide support for agriculture, rural areas, and farmers' work.