China News Service:

In recent years, China's grain harvest has been witnessing consecutive bumper years. The government has also scored remarkable achievements in promoting and improving the reform of the grain storage system. In on-the-spot interviews, we have also learned that many farmers are concerned about how to earn more money by growing grain. So, what measures have relevant government departments taken to protect and mobilize the enthusiasm of grain-growing farmers? Thank you.

Zhang Wufeng:

Thank you. The question you have raised will be answered by Mr. Su Wei.

Su Wei:

Thank you for your question. In fact, earning money by increasing grain production is also very important to ensure food supply and maintain food security. To ensure food security, we must first protect the enthusiasm of farmers and enable them to reap profits from grain production. Our purpose of promoting the reform of the grain storage system is to give full play to the role of the market mechanism, tackle structural issues on grain varieties, and protect farmers' interests more effectively. The government has taken a series of measures to protect and mobilize the enthusiasm of farmers, mainly by reducing costs, working vigorously in the area of purchasing, and increasing farmers' income.

First is to reduce costs. By exempting farmers from the agricultural tax, we have reduced the burden of farmers by more than 130 billion yuan every year, which is a fundamental approach in reducing the burden of farmers. The overall scale of financial support for agriculture has continuously expanded at the same time, exceeding 1 trillion yuan in 2018. By implementing efficient water-saving and high-standard farmland construction projects and increasing investment in farmland water infrastructure construction, we have continuously improved production conditions and enhanced our ability to resist natural disasters. By adjusting and refining the price-setting mechanisms for grain and the policies for supporting and protecting agriculture, we have promoted appropriately-scaled agricultural operations of various forms and reduced the costs of farmers in grain production.

Second is to work vigorously in the area of purchasing. The government has adopted a series of policies and measures to handle grain purchases well, guide enterprises to enter the market actively, and prevent any predicament in which "farmers feel difficultly in selling grain." We have established a specialized post-production service system for grain-growing farmers to provide them with such services as grain-cleaning, drying, storage, processing and marketing. In the areas where conditions permit, smartphone app software for grain sales have been developed to help farmers achieve online sales, meeting the needs of grain sales in rural areas.

Su Wei:

Third is to increase farmers' income. The main method in this regard is to develop industries, improve grain quality, and refine the price-setting mechanisms for grain. We are vigorously developing the grain industry economy and promoting the integration of primary, secondary and tertiary industries so that grain-growing farmers can share the value-added benefits of the processing and conversion of grain.

Here are some examples. In Heilongjiang province, farmers processed 72.3 billion jin (about 36.15 billion kg) of raw grain and realized 103.6 billion yuan in sales revenue in 2018. This is a very good example. In Hunan province, farmers developed a cultivation mode in which "shrimps and rice co-exist" and the total output value reached 10 billion yuan. In Henan province, grain and edible oil-processing enterprises established 718 mu (about 47.8 hectares) of high-quality grain bases, benefiting 1.9 million rural households. In Guizhou province, local governments implemented cultivation projects for the orders of grain and edible oils with competitive advantages, bringing about 9.3 billion yuan of profits for farmers and benefiting 1.15 million rural households.

We have also carried out in-depth high-quality grain projects, promoted the connection between grain production, purchase, storage, processing and marketing, and guided farmers to adjust the grain growing structure and expand the cultivation of high-quality varieties of grain. Presently, the price of high-quality wheat and rice is 0.1-0.2 yuan per 0.5 kg higher than that of common varieties. This has helped realize the goal that "quality grain gets a good price, and high yield increases farmers' income." Thank you.