Central Government to Provide Subsidies to Farmers

The Chinese government has pledged to earmark a lump sum of RMB 10 billion this year to directly subsidize grain farmers, trying to support summer harvest and autumn sowing, mitigate the impact of rising prices for agricultural supplies related to grain production, and encourage farmers to grow grain.

It is made clear that the recipients of the subsidies are actual grain growers who bear the cost of rising agricultural supplies’ prices, which include farmers growing grain with self-owned contracted land, family farms, farmers’ cooperatives, agricultural enterprises, and other new agricultural business entities growing grain on transferred arable land, including organizations that provide socialized services for grain cultivation and harvest.

Besides ensuring that subsidy funds reach those that need them most, the government also requires that the subsidy standard be determined by each region and should be unified within each county in principle.

The Ministry of Finance urged local governments to make full use of modern technologies to timely and fully distribute subsidy funds.