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Role of Incentives and Technology in Chinese Agriculture by Jikun激励和技术在我国农业季作用.ppt

Role of Incentives and Technology in Chinese Agriculture by Jikun激励和技术在我国农业季作用.ppt

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Role of Incentives and Technology in Chinese Agriculture by Jikun激励和技术在我国农业季作用.ppt

To protect farmers’ income from the likely fall in market prices: minimal “procurement” prices for paddy and wheat since 2004 (also temporarily for cotton and maize in 2011) Minimal price (P*) through market operation of state reserve (P* t is about Pt-1) 6.3 yuan = 1 US$ in 2012 Yuan/ton Yuan/ton Total Factor Productivity for rice, wheat and maize in China, 1979-94 Rice Wheat Maize TFP growth at about 3% After middle 1980s, technology has been major factor affecting productivity growth Source: Jin, Huang and Rozelle. 2009 Total Factor Productivity Rises Mostly Technical Change (rising of production frontier) … China is already operating efficiently (at frontier) Total Factor Productivity for major crops, 1995-2004 Crop yield (tons/ha) in 2010: paddy (6.55); wheat (4.75); maize (5.45) Source: Jin, Huang and Rozelle. 2009 Same story for livestock and dairy!! TFP annual growth rate, and Decomposition of TFP for Livestock and Dairy Products (1995-2004) Expansion of irrigated land in China Million ha About 50% of cultivated land Investment into agricultural sector Central government budget support (billion yuan in 2008 prices) (note: the local government investment in agriculture has a similar trend) Challenges Food security Famer’s income China’s net export of agriculture and food (billion USD) under baseline in 2001-2020 Policy responses to challenges Food security Invest in technology Invest in land and water Grain reserve and minimal price … Small farm and income Land tenure, rental market, cooperative Subsidies (income transfer) Agricultural research investment intensity (%) in China. Government fiscal investment in agricultural research (billion yuan in 2005 price) Since 2000, the rise in research investment has been keeping high Invest in technology Annual growth rate of agricultural RD expenditure in real term was more than 16% in the past 10 years, and about 20% in recent years 2012 #1 Policy document: Growth in agricultural RD should be furt

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