Challenges and Opportunities for Chinese Agriculture: Feeding Many While Protecting the Environment [1st ed.] 9789811535352, 9789811535369

Citation preview

CHINA AND GLOBALIZATION 2.0

Challenges and Opportunities for Chinese Agriculture Feeding Many While Protecting the Environment

Wensheng Chen Translated by Guofeng Zheng

China and Globalization 2.0

Series Editor Bai Gao Department of Sociology Duke University Chapel Hill, NC, USA

China is now at the forefront of globalization, particularly with the One Belt, One Road policy. What does a Chinese globalization look like, though? This series will explore the distinct legacies and evolutions of China’s worldview, even as China exports its development model to countries around the world. More information about this series at http://www.palgrave.com/gp/series/15881

Wensheng Chen

Challenges and Opportunities for Chinese Agriculture Feeding Many While Protecting the Environment

Wensheng Chen Institute of Rural Development Research Changsha, Hunan, China Translated by  Guofeng Zheng East China University of Science and Technology Shanghai, China Published with the financial support of the Chinese Fund for the Humanities and Social Sciences

ISSN 2523-7209     ISSN 2523-7217 (electronic) China and Globalization 2.0 ISBN 978-981-15-3535-2    ISBN 978-981-15-3536-9 (eBook) https://doi.org/10.1007/978-981-15-3536-9 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Singapore Pte Ltd. 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-­01/04 Gateway East, Singapore 189721, Singapore

Prologue I

Since the 16th National Congress of the Communist Party of China (CPC), the Party Central Committee has put forth to the whole Party the task of solving the issues related to “agriculture, farmers, and rural areas”. The Committee successively issued 11 斜体: No. 1 Central Documents with the theme of “agriculture, farmers, and rural areas”, and implemented a series of unprecedented policies to benefit and enrich farmers. By abolishing agriculture tax, subsidizing farmers directly, reforming systems such as the grain distribution system, collective forest rights system, and rural finance system, and promoting urban and rural development, major reforms have greatly stimulated farmers and improved the condition of agriculture and rural areas. In terms of grain production increase, China has witnessed a continuous increase over 11 consecutive years. The annual grain output increased from 861.4 billion jin (1 jin≈500 g) in 2003 to 1124.2 billion jin in 2014. The average annual increase in grain production in the 11 years is 320 billion jin. Food production can continue to grow for more than a decade, which is rare in China and the world as the whole. Income for farmers has also maintained relatively a rapid growth for 11 consecutive years. The annual per capita net income of rural residents increased from ¥2262 in 2003 to around ¥9800 in 2014, with an average annual increase of more than ¥650 in 11 years. Furthermore, the increase margin of farmers’ income has been higher than that of urban residents for five years. These achievements show that China’s agricultural and rural development has continued to improve, and in doing so the CPC’s rural policy has won the support of the farmers. Because of increased farmers’ income, improved v

vi 

PROLOGUE I

grain production, and the development of the infrastructure of rural areas, social undertakings have entered the fastest period in Chinese history. At the moment, China’s agriculture is on its way to a new stage and faces a new situation. First, the number of imports of major farm products continues to increase. The main farm products production in China continues to increase, as well as the varieties and quantities of imported farm products. The six major farm products, grain, cotton, oilseeds, sugar, milk, and meat, need to be imported. In 2013, China imported more than 84 million tons of grain for the first time, while all grain exports only reached 2.43 million tons. Second, the international competitiveness of agricultural product prices has declined. The prices of farm products at home and abroad are undergoing significant changes and the domestic prices of most bulk farm products have exceeded the international market prices. The wholesale prices of domestic cereals are ¥0.2–0.4 higher than the international market price. Likewise, the prices of farm products, such as soybeans, rapeseed, cotton, sugar, and meat, are also generally higher than the international market prices, which has become an important reason for the continuous growth of China’s agriculture imports. Third, the impact of WTO rules on agriculture has increased. At the very beginning of China’s entry into the WTO, China promised quotas on import tariffs for some important farm products. This provided an important guarantee for China’s agriculture to maintain stable development after China joined the WTO. However, as domestic agricultural product prices continue to rise and surpass the prices of farm products on the international market, high-tariff barriers other than quotas may be gradually broken down. Once the prices of domestic farm products reach the “ceiling” of high tariffs, international farm products will enter the domestic market on a larger scale, which will affect the development of China’s agriculture industry, including farmer employment, food security, and economic security. Fourth, profound changes have taken place in the rural economy and social development. In the process of industrialization and urbanization, a large number of rural laborers continuously move to cities and towns. Consequently, since 2010, the wage growth rate of migrant workers has been declining, indicating that the macro-economic trend as well as the changes in the structure of the secondary and tertiary industries of the city have a relatively obvious impact on the transfer of farmers’ employment. How this situation will change in the future and what impact will be exerted on rural economic and social development require further research. Fifth, the agriculture income of farmers is challenged. At present, the cost

  PROLOGUE I 

vii

of agriculture input is increasing rapidly, and it is becoming more and more difficult for farmers to increase their income through grain production and operation. In line with this, the income structure of farmers has also undergone significant changes. In 2013, for the per capita net income of farmers, wage income exceeded their income from household business operation for the first time. At the same time, the income from plantation accounted for less than a quarter of the per capita net income of farmers, which indicates that policies are becoming less effective in generating incentives among farmers to grow crops. Based on the new situation and new changes, the development of agriculture in China is facing a series of unprecedented challenges. First, it faces the pressure of international and domestic agricultural product price inversion. On the one hand, the prices of major domestic farm products are already higher than those of farm products on the international market; on the other hand, farmers are still not satisfied with the current prices of farm products. From the perspective of agricultural product prices, if we raise the prices of domestic farm products, it means that China will further open its doors to the international market, which will in turn create new pressures on domestic agricultural development. Second, it faces the challenge of rising agricultural production costs. At present, China’s agricultural production costs are rising at a fast rate, especially the annual growth rate of production-oriented service expenditures, which has gone from 8% to 9%. This has driven the cost of farm products to rise and has become a realistic challenge for the development of agriculture. Third, the agriculture support protection system faces new challenges. According to the agreement upon the accession to the WTO, the subsidy standard for China’s agriculture micro-licensing is 8.5%. Yet, the current subsidies for some important farm products have reached or exceeded this standard. While withstanding the pressure from developed countries such as the United States to accelerate the opening of China’s farm products market, it is an urgent issue to further increase support for agriculture and continue to maintain the growth of agriculture investment in the context of slowing economic growth. Fourth, it is hard for the present agriculture eco-environment to comply with the current agricultural production methods. In terms of the growth of grain production, China’s agricultural development has indeed realized great achievements, but it has also paid a huge environmental cost. The challenges and pressures of the agro-eco-­ environment are unprecedented, with soil and water pollution caused by chemical fertilizers, pesticides, and plastic films becoming more and more

viii 

PROLOGUE I

serious in addition to industrial pollution, atmospheric pollution, and so on. Fifth, agro-sci-tech is not strong. Although China’s agro-sci-tech is at the forefront of the world in some areas such as hybrid rice breeding, it still lags behind developed countries in many agriculture research fields and agro-technology applications. If this situation is not changed, it will be difficult to alter the passive status of China’s agriculture in international community. Sixth, the degree of organization and marketization of agricultural production is relatively low. Although the situation is gradually changing under the impetus of reform, it still faces many logistical problems. While China is the most populous country in the world, and it is also a country with a weak agriculture foundation, which means that it is very difficult to build modern agriculture. Xi Jinping, General Secretary of the CPC Central Committee, clearly pointed out that “We must realize that agriculture is still a weak spot of ‘synchronization of four modernizations’, and the countryside is still a weak link for building a well-off society in an all-round way. To make China strong, agriculture must be strong; to make China beautiful, rural areas must be beautiful; to make China rich, farmers must be rich”. Furthermore, when inspecting Fujian Province, Xi stressed that “the building of a well-off society in all-round ways cannot be realized without the rural areas”, and explicitly demanded that the country “try to tap new potentials in improving grain production capacity, open up new channels in optimizing agriculture structure, seek new breakthroughs in the way of transforming the development of agriculture, make new achievements in increasing farmers’ incomes, and take new steps in building new countryside”. This is the overall requirement for rural reform and development in the coming period. The acceleration of China’s agricultural modernization is a significant issue of the era. In the new development stage and the new domestic and international development environment, the basic functions of agriculture have undergone major changes, and agricultural development will transform from a single goal to a myriad of goals. Therefore, the transformation of agricultural development of a populous country under the constraints of resources and environment requires new strategic concepts and strategic initiatives. Researcher Wensheng Chen incorporates the transformation of China’s agricultural development into “A resource-conserving, environmentally friendly society (resource and ecologically sound society)”. The construction and big picture of the coordinated development of industrialization, informatization, urbanization, and agricultural

  PROLOGUE I 

ix

modernization highlights Chinese characteristics and the main line of “resource and ecologically sound” in this book. This book focuses on the research on issues like changing multiple goals, intrinsic motivation, methods of realization, and support systems of China’s agricultural development mode under the constraints of resources and environment. It also explores effective ways to transform China’s agricultural development mode, such as the transformation of resource element usage driven by agricultural innovation in sci-tech, the transformation of the agricultural production system with “the resource and ecologically sound agriculture” as the orientation, the transformation of the agriculture socialization service system with the rural informatization as the breakthrough, and the transformation of an agricultural development mode motivated by the agriculture system. This book proposes a theoretical framework with “resource and ecologically sound agriculture” as the strategic orientation, scientific and technological innovation as the first driving force, informatization of rural areas as the breakthrough, and agricultural system innovation as the guarantee to transform China’s agricultural development mode in the construction of a “resource and ecologically sound society”. This theoretical research is achieved based on a deep understanding of trend changes in modern agricultural development both at home and abroad, as well as time requirements. Numerous theoretically innovative points as well as practical countermeasures targeting reform and development of China’s current agriculture have been brought forward throughout the book, which will provide useful inspirations for all parties involved in and concerned with China’s agricultural development, and will play a positive role in promoting the reform and development of China’s agriculture and rural areas. Xiwen Chen1

1  Xiwen Chen, Deputy Head of the CPC Central Leading Group for Rural Work, Director of the Office.

Prologue II

The Chinese economy completed its leap of the Lewis transition zone from 2004 to 2010, which is a milestone in China’s economic development. After a country’s economy leaps across the Lewis turning point, the labor marginal productivity of agriculture is no longer zero, and the relative scarcity of capital and labor as well as the relative price relationship will have fundamental changes. This change is manifested in agricultural production as the economic phenomenon of the substitution of labor by capital, leading to the start of a decrease of the marginal rate of return of capital. In the constant production function, the decrease of capital returns means the country’s economic growth declines. However, if the production function changes, it can still maintain a relatively high economic growth rate, and indeed to change the production function is to change the growth mode of the economy. Under the constraint of the inevitable return on capital, increasing labor productivity is the key to maintaining the return on investment. In general, there are many ways to increase labor productivity, including replacing labor with machines, improving the proficiency of workers, adopting more efficient technologies and crafts, and improving the efficiency of the allocation of production factors. With the large outflow of rural labor from the agricultural fields, the resource endowment structure of agricultural production changes, leading to mutual replacement and further reversal among agricultural production elements. The organization method of the substitution of capital by labor in traditional agricultural production has gradually been replaced by the substitution of labor by capital, thus forming an advancement of induced technology development. However, in the process of agricultural xi

xii 

PROLOGUE II

production, if the capital inflow does not expand along with the corresponding expansion of production scale, the substitution of labor by capital will lead to a waste of resources in the production process. Farmer households are the basic agricultural production units formed in the rural economic reform more than 30 years ago. Farmer households obtained equal rights to cultivate land from village collectives through a contract by means of rural resident rights. The land lease contract stipulates the rights and responsibilities between a farmer household, village collectives, and countries, and thus establishes an agricultural production system based on small farmer households. However, with the development of industrialization and urbanization, the labor force continues to flow out of households that have productive capability, which leads to the gradual degradation of the productive capacity of farmer households. At the same time, by sharing the results of industrialization, laborers entering the non-agricultural field obtain higher rewards than in the agricultural field, resulting in partial capital flowing into rural and agriculture fields. On the one hand, the outflow of labor causes a decline in production capacity of farmer households. On the other hand, capital flows from urban and non-agriculture fields into rural areas, which reduces the opportunity cost of capital use, and thereby stimulates the enthusiasm of farmer households to purchase agricultural machinery, pesticides, herbicides, and other agricultural investment resources. The existing research shows that under the condition of unchanged agricultural production scale, the biggest impact on the income elasticity of crop production is the cash input of production. The substitution of labor by capital in the agricultural production of out-oftown households is higher than those who do not have out-of-town labor. The labor loss caused by labor migration and the increase of non-agriculture income levels will encourage farmers to carry out extensive operations on agriculture. The inflow of remittances can help farmers use more production factors such as pesticides and fertilizers, thus increasing the possibility of pollution in agricultural production. Some scholars have found that although farmer households whose family members go out to work can purchase more and more advanced means of production, the inflow of remittances has led to “slack” behavior of other family members. Industrialization and urbanization put forward internal requirements for agricultural modernization. The pollution of agricultural production and the waste of resources are contained in the unbalanced organization of its factor allocation.

  PROLOGUE II 

xiii

As a sizeable portion of China’s labor force exits agriculture, the expansion of agricultural production scale has been constrained by the existing farmland property rights, resulting in high cost of rural land circulation, greater uncertainty, and relatively low efficiency of agriculture. This has led to a gradual outflow of the capable, knowledgeable, and energetic labor force from the agriculture field, and thus the current agricultural labor force is older and there are more female laborers. This labor structure in the agricultural production is not conducive to the development of agriculture, especially the expansion of farm products and the usage of new technologies, new varieties, and new means of production. Therefore, a gradual decline of farmer households as the basic unit of agricultural production leads to agricultural extensive management and agricultural production efficiency that cannot be advanced, and the recession of agriculture and rural areas will be inevitable. To change the mode of agricultural production, we must first change the agricultural production organization; cultivate and develop new agricultural production organizations, such as family farms, large family farming businesses, and agriculture cooperatives; and create leading enterprises of agriculture industrialization and agriculture socialized service organizations, thus forming a new agricultural production service system. Large-scale agricultural production can reduce non-point sources pollution and point pollution of agriculture and improve the traceability of farm products. In the actual production, the adoption of agro-technology has a critical point. When farmer households operate on a small scale, it is difficult for them to adopt new technologies according to economic and rational principles, or even to use “scale technology” alone. Once farmer households realize large-scale operation of agricultural production, the unit treatment cost of agricultural non-point sources pollution will be reduced. Practice has shown that only by implementing land circulation can we achieve concentrated land and expand the scale of agriculture operations. In terms of problems such as decentralized management of rural land and low economies of scale, cultivating the rural land market and promoting the circulation of rural land are considered to be the inevitable choices for realizing China’s farming operations on an appropriately large scale, promoting the adoption of agro-technology, and improving the efficiency of farmland resource allocation and agricultural labor productivity. Through the farmland circulation market, fragmented plots will be concentrated in the hands of large family farming businesses, and a large-scale operation will be realized. This will not only increase farmers’ income, but also the

xiv 

PROLOGUE II

efficiency of farmland, and will ensure that the income of large family farming businesses is on the same planting scale as that of urban residents. After the implementation of land circulation and large-scale operation, social division of labor and specialized production have naturally expanded, forming a series of specialized production bases, which have laid the foundation for increasing investment in sci-tech, standardized production, ecological production, and agricultural marketization. In practice, we found that with the expansion of the scale of agriculture operations, farmers’ demand for fertilization technology, improved crop varieties, cultivation techniques, and use of agricultural machinery increased. The greater the scale of agricultural production and operation, the higher the demand for agro-technology information, and the more controllable the sources of pollution will be, such as chemical fertilizers, pesticides, and plastic films. It can be seen that the scale operation of agriculture implies the development trend of “resource and ecologically sound”. Professor Wensheng Chen, who grew up in local communities, is the chief editor of the Journal of Chinese Rural Discovery, a brand magazine for issues related to “agriculture, rural areas, and farmers”. Challenges and Opportunities for Chinese Agriculture is the outcome of “The Research of the Transformation of Agricultural Development Model in the Construction of ‘Resource and Ecologically Sound Society’”, a postfunded project by the National Social Science Fund of China. Based on the relevant theoretical research and practice of agricultural development mode in China and abroad, the book focuses on the development of China’s agriculture in the construction of a “resource and ecologically sound society” based on the characteristics of agricultural resources and environment, as well as multiple goals of developmental transformation of Chinese agriculture under the constraints of resources and environment. It also focuses on the research of agro-scientific and technological innovation as the core power to accelerate the transformation of resource utilization methods, and building an agricultural production system oriented by the “resource and ecologically sound agriculture” so as to accelerate the transformation of the agriculture socialization service system by using rural informatization as a breakthrough. As a method of accelerating the institutional innovation of agriculture, “resource and ecologically sound” development is used to guarantee the accelerated transformation of an agricultural development mode. The book is intended to explore the theory and practice of accelerating the transformation of China’s agricultural development mode with multiple goals, providing strategic direction of

  PROLOGUE II 

xv

agricultural development transformation of a populous country under the constraints of resources and environment, and the potential path and institutional guarantee so as to construct a new agricultural modernization model suitable for China under the guidance of the “resource and ecologically sound society”. But this is different from western industrialized agriculture, and many innovative viewpoints and solutions for exploring the theoretical study of agricultural development are put forward in this work, providing valuable references for the decision-making and practice of agricultural development. Fang Cai1

1

 Fang Cai, Member of the Chinese Academy of Social Sciences, Vice President.

Contents

1 Prolegomenon  1 1 Research Questions  1 2 Main Questions and Content 11 2 Agricultural Development Mode: Relevant Theoretical Research at Home and Abroad 17 1 The Neoclassical Production Functions and Agricultural Development Mode: Theoretical Basis and Its Consequences for the Development of Traditional Agriculture 19 2 The Transformation of Agricultural Development Mode: Investigation Based on Classic Occidental Economics and the Neoclassical Economics 26 3 The Farmland System and the Transformation of Agricultural Development Mode Based on the Perspective of New Institutional Economics 34 4 “Resource and Ecologically Sound Society” and the Transformation of Agricultural Development Mode Based on the Review of Development Economics 43 5 The New Stage of the Development of Modern Agriculture: The Domestic Resource and Ecologically Sound Agricultural Practice and the Latest Development of World Agriculture 55 6 The Transformation of Agricultural Development Mode in the Construction of “Resource and Ecologically Sound Society”: The Current Limitations and Future Orientation 64 xvii

xviii 

CONTENTS

3 The Transformation of China’s Agricultural Development with Multiple Goals Under Resource and Environmental Constraints 69 1 The Status Quo of China’s Agricultural Development under Resource and Environmental Constraints 69 2 The Construction of “Resource and Ecologically Sound Society” Requires a Transformation in Agricultural Development 81 3 The Strategic Direction for the Transformation of China’s Agricultural Development: “Resource and Ecologically Sound Agriculture” 90 4 Multiple Objectives of Agricultural Development Transformation in the Construction of “Resource and Ecologically Sound Society”110 4 The Transformation of the Utilization Mode of Elements and Resources with the Agro-­scientific and Technological Innovations at the Core125 1 Innovation of Agro-sci-tech and the Transformation of Agricultural Development Mode126 2 Labor-Saving Technological Innovations, Human Resource Development, and Improvement of Labor Productivity134 3 Resource-Conserving Technological Innovations and the Improvement of Resource Utilization Rate and Land Output Rate158 4 Technological Innovations of Agro-­environmental Protection, Conservation of Factors of Production, and Sustainable Agricultural Development166 5 The Transformation of Agricultural Production System in Line with “Resource and Ecologically Sound Agriculture”183 1 The Construction of “Resource and Ecologically Sound Agriculture” Industrial System184 2 Constructing the Agriculture Standardization Production System with a Focus on Guaranteeing Agricultural Products’ Quality at the Core192 3 Constructing the System of Agricultural Non-­Point Sources Pollution Prevention and Control System with Preserving the Eco-­environment at Its Core210

 CONTENTS 

xix

4 Constructing the System of Disaster Prevention and Mitigation with Constructing Irrigation and Water Conservancy at Its Core230 5 Constructing the System of Biological Species Resources Protection with Protecting of Biological Germplasm Resources at Its Core252 6 Constructing the System of “Resource and Ecologically Sound Agriculture” Comprehensive Evaluation and the Analysis of Hunan Province266 7 The Empirical Study of “Resource and Ecologically Sound Agriculture” Development in Chinese “Resource and Ecologically Sound Society” Experimentation Area with an Example from Changsha-Zhuzhou-Xiangtan City Cluster301 8 The Empirical Study of a Big Agricultural Province’s Output Quality and Safety with an Example from Hunan Province323 6 The Transformation of Commercialized Rural Service System with Taking Agricultural Informatization as a Breakthrough341 1 Agricultural Informatization Is the Inevitable Choice of the Transition to Commercialized Rural Service System341 2 The Choice of Agricultural Informatization Service Mode in the Construction of “Resource and Ecologically Sound Society”350 3 The System of Informatization-Oriented Sci-­tech Services for the Commercialization of Agricultural Scientific and Technological Research361 4 The System of Informatization-Oriented Production on the Basis of the “Resource and Ecologically Sound” Transformation of Agricultural Production374 5 The System of Informatization-Oriented Circulation Service on the Basis of the Farm Products Circulation with High Efficiency385 6 An Empirical Study of Demonstration Province of Chinese Rural and Agricultural Informatization with an Example from Hunan Province397

xx 

CONTENTS

7 The Institutional Innovation of the “Resource and Ecologically Sound” Transformation of Agriculture419 1 The Transformation of the Functions of Government and the Transformation of Agricultural Development Mode419 2 The Institutional Innovation of the Development of Rural Human Resources Aimed at Cultivating the New Farmers429 3 The Institutional Innovation of Land Circulation Will Take Efficient Use and Land Resources Protection into Account438 4 Constructing the System of the National Scientific and Technological Innovation Facing the Frontier of the Development of the World Agriculture454 5 Constructing the Financial Support System Featuring Resource Conservation and Environmental Protection464 6 Innovating and Perfecting Rural Finance Mechanism and Rural Finance Service System472 7 Constructing the Institutional System of “Resource and Ecologically Sound Agriculture”-Oriented Eco-­ Environmental Management and Protection480 8 Building a System of Government Oversight for Agricultural Product Quality and Introducing Official Food Processing Guidelines494 9 Accelerating the Innovation of Rural Social Management to Promote “Resource and Ecologically Sound” Transformation of Agriculture500 Bibliography511

List of Figures

Fig. 3.1 Fig. 3.2 Fig. 3.3 Fig. 4.1 Fig. 4.2 Fig. 4.3 Fig. 4.4 Fig. 4.5 Fig. 5.1 Fig. 5.2 Fig. 5.3 Fig. 5.4 Fig. 5.5 Fig. 5.6 Fig. 6.1

China’s grain output (1975–2001) China’s annual grain output and import Changes of farmland acreage in China (2001–2012) China’s total agricultural machinery and agricultural employment from 1990 to 2010 China’s agricultural comprehensive mechanization tendency and the number of employees in the primary industry from 1990 to 2010 China’s agricultural mechanization, gross agricultural output value, and agricultural added value from 1990 to 2010 Rural technological innovations of environmental protection route with production factor conservation at the core Farmland ecology recycling system The framework of standardization production system of agriculture focusing on agricultural products quality Agricultural standardization production system structure National changes in the total amount of fertilizers and pesticides applied (1991–2010) Changes in the total amount of fertilizers and pesticides applied in Hunan Province (2002–2010) The system structure of biological species resources protection with protecting biological germplasm resources at its core The trend of total evaluation index of “resource and ecologically sound agriculture” construction in Hunan Province The overall framework for the construction of the demonstration province of Chinese rural and agricultural informatization in Hunan

71 73 76 144 144 148 172 181 201 205 213 214 256 298 401 xxi

List of Tables

Table 3.1 Table 3.2 Table 4.1 Table 4.2 Table 4.3 Table 5.1 Table 5.2 Table 5.3 Table 5.4 Table 5.5 Table 5.6 Table 5.7 Table 5.8

2001–2010 China’s water resources and usage 78 Comparison between “resource and ecologically sound agriculture” and low-carbon, ecological, and circular agriculture104 Agricultural mechanization level and employment of agricultural labor force from 1990 to 2010 143 Agricultural mechanization level and agricultural labor productivity from 1990 to 2010 147 Rural labor force quality and agricultural labor productivity from 1990 to 2010 153 Estimation of chemical fertilizer application and loss of TN in China and Hunan Province 216 Conversion of TN, TP, and COD emission factors of main livestock and poultry 216 Estimation of TN, TP, and COD loss in livestock and poultry breeding in China and Hunan Province (2010) 217 Inputs and outputs of agricultural factors in Hunan Province over the years 2002–2010 220 Production function regression coefficient and statistical test results 221 Distribution areas and hazard forms of major agricultural meteorological disasters in China 236 Evaluation index system for disaster prevention and mitigation capacity with constructing irrigation and water conservancy at its core 244 “Resource and ecologically sound agriculture” evaluation index system 271 xxiii

xxiv 

LIST OF TABLES

Table 5.9 Table 5.10 Table 5.11 Table 5.12 Table 5.13 Table 5.14 Table 5.15 Table 5.16 Table 5.17

Table 5.18

Table 5.19 Table 5.20

Regional “resource and ecologically sound” agricultural development index evaluation system 279 Score of economic development evaluation 287 Score of social progress evaluation 288 Score of resource conservation evaluation 289 Score of eco-environmental protection evaluation 290 Evaluation weights of regional “resource and ecologically sound” agricultural development indicators 292 Annual values of indexes for the development of “resource and ecologically sound agriculture” in Hunan Province (2002–2010)295 Evaluation indexes of each criterion layer of “resource and ecologically sound agriculture” evaluation system in Hunan Province (2002–2010) 299 Comparison of resources and environment between the reform pilot areas of “resource and ecologically sound society” in Changsha-Zhuzhou-Xiangtan city cluster and other regions 303 Comparison of human resources conditions between reform pilot area of “resource and ecologically sound society” in Changsha-Zhuzhou-Xiangtan city cluster and other regions (2011)304 Comparison of agricultural economic developments between Changsha-Zhuzhou-Xiangtan city cluster and other regions 305 Comparison of agro-technology levels between ChangshaZhuzhou-Xiangtan city cluster and other regions 306

CHAPTER 1

Prolegomenon

1   Research Questions Given that China has to feed over 20% of the world’s population with just 7% of the world’s farmland, agricultural development is strategically important in China. In the global context of frequent extreme weather, volatile swings of grain and energy prices, and financial crisis rippling across the world, China’s future will be decided by how it addresses the challenges of increasing resource and environmental constraints, the rising costs of agricultural production, the migration of rural labor force, environmental contamination, and ecological degradation to promote the transformation of the agricultural growth model1. In the process of modernization, China’s agricultural development is unique, as no other country has ever exerted such long-term influence on the whole national economy, or prioritized national development strategies in the long term. Domestically, though agriculture accounts for an increasingly lower proportion of GDP and increases in farmers’ income rely more on non-agricultural sectors—multiple functions of agricultural production such as ecological conservation, environmental conditioning, bio-based energy, tourism and recreation, and cultural continuity would be put in the foreground—its strategic roles of helping people with life 1  Zhu, Youzhi, Chen, Wensheng. National Food Safety Must Address New Challenges in the New Era [N], Guangming Daily, 05-25-2013.

© The Author(s) 2020 W. Chen, Challenges and Opportunities for Chinese Agriculture, China and Globalization 2.0, https://doi.org/10.1007/978-981-15-3536-9_1

1

2 

W. CHEN

quality, building up a strong economy, and increasing international competitiveness have not changed.2 Internationally, more than 1.5 billion people live on only $1 per day with more than half of that being spent on food.3 The potential food crisis caused by possible soaring grain prices will not only induce international financial turbulence and social crises in countries and regions but also reduce millions to hunger. In fact, agricultural development mode and food security have become a big picture issue concerning national and even global economic security and social stability. As food, oil, and currency constitute weapons to restrict other countries in the international community, agriculture, with increasingly outstanding strategic roles, has grown into an essential core competence for a country to compete economically. The past 30 years of reform and opening-up have witnessed China’s entry into the middle stage of industrialization and rapid urbanization, and China finds itself positioned for the optimum development throughout history. China’s Household Responsibility System in rural areas has unprecedentedly released the vigor of agricultural development, which has made China leap historically from an era of food shortage to a new one of subsistence shared by over a billion people and of all-round moderate prosperity. From 2004 to 2006, the agricultural tax was successively rescinded nationwide, a great milestone marked in agricultural history by putting an end to the practice of farmers paying grain tax to government which had persisted for over two thousand years. It also shed light on the issue of agricultural tax—the toughest of the issues related to “agriculture, farmers, and rural areas” that has remain unresolved for thousands of years. Since the beginning of the twenty-first century, especially after 2003, agricultural development has been stymied by multiple factors: growing pressure and constraints of resources and environment, complex changes in domestic and foreign economies, and frequent outbreaks of natural disasters. Yet, it is worth mentioning that for the first time China’s grain output increased for 11 consecutive years since 1949, from 861.4 billion Jin in 2003 to 1124.2 billion Jin in 2012, representing an average 2   Chen, Wensheng. The Transformation of National Economy Must Start from Breakthroughs in Agriculture, Rural Areas and Farmers [N], Guangming Daily, July 13, 2010. 3  Patel, Raj. Stuffed and Starved: Markets, Power and the Hidden Battle for the World Food System [M], (Trans.) Guo, Guoxi and Cheng Jianfeng, Beijing: Oriental Press, 2008.

1 PROLEGOMENON 

3

annual growth of 35 billion Jin. And farmers’ income realized “Nine Successive Fast Increases”, from ¥2662 in 2003 to ¥7917 in 2012, growing at the fastest pace with an average annual growth of over ¥540.4 Taking a review of the history of world agriculture, we will find that among major agricultural giants, only the United States and India achieved five-­ consecutive-­year increases respectively from 1975 to 1979 and from 1966 to 1970. What we have achieved in agricultural development in recent decades, both by historical and contemporary standards, set up a “Chinese benchmark” for the world.5 This is a notable achievement, and it lays a solid foundation for modernization and enables China’s agriculture to begin a new course of development. We should also be mindful of the unprecedented challenges this mission faces. First, as China’s population is increasing steadily, the existing pattern of agricultural development is faced with the grim challenge of meeting the excessive demand for farm produce. Despite nine consecutive years of good harvest, China is importing more and more food from other countries. Data shows that in 2011 China imported as much as one tenth of total domestic output, including about a third of world soybean exports. The global population is forecast to swell to 9.3 billion, demanding another 680 million tons of grain, while China’s population will increase to 1.5 billion, which is more than the number of people in all developed countries combined. Seven hundred and eighty million tons of grain will be required, as well as 120 million tons of meat.6 Second, as farmland and water resources diminish in quantity and decline in quality, the present developing mode is confronted with tighter constraints on resource-based factors. As an unchanged national condition, the per capita agricultural resources of China are far fewer than the world average. The essential four agricultural resources, forest cover, share of freshwater, territory, and cropland, account for 26%, 33%, 36%, and 40% of the world average, and per capita agricultural resources are

4  Data sources: Xu, Lianzhong. “Nine Successive Increases” in Grain Yield and Prices [J], Seeking Knowledge, 2001 (3); Farmers’ Income Growth Rate Surpasses That of Urban Residents Again [N], Farmers’ Daily, January 21, 2013. 5  Nine Successive Increases in Grain Yield Sets Up a Chinese Benchmark for the World [N], People’s Daily (Overseas Edition), December 3, 2012. 6  Chen, Xiwen. China Must Have a Global Vison in Addressing Food Issues (A Speech Made on 2012 China Agricultural Development Forum at China Agricultural University) [J], Journal of Chinese Rural Discovery, 2012 (4).

4 

W. CHEN

declining.7 Third, with globalization, industrialization, and urbanization being advanced, the current development mode is faced with challenges related to essential resources and increasing pressure from domestic and foreign markets. On the one hand, with the accelerating process of China’s industrialization and urbanization, competition is growing fiercer between rural areas and cities, as well as between agriculture and industry for farmland and water resources. On the other hand, low labor productivity severely affects international competitiveness. In 2008, the yield of cereal, rice, and wheat per unit area reached the standards of developed countries and the yield of maize reached the level of moderately developed countries. During this period, China’s agricultural labor productivity was only about 47% of the world average, about 2% of the average of developed countries, and only 1% of the average of America and Japan, ranking No. 91 in the world8. In the meantime, the “four agricultural giants” of international agricultural companies have gained control over 80% of the world grain trade and 70% of rapeseed trade through strengthening their deployment of the whole industry chain in raw materials, logistics, trade, processing, and sales.9 As international companies are strengthening monopolization of farm products and materials, China is facing increasingly unfavorable competition with developed countries. Fourth, as resource-based agricultural development causes ecological problems such as resource destruction, environmental pollution, water loss, soil erosion, and desertification, the existing pattern faces challenges from ecological degradation and safety concerns surrounding farm products. Research shows that China is responsible for 30% of the world’s consumption of chemical fertilizers in recent years. The pesticide and fertilizer per unit area rates are 1.4 to 2 times higher than those of developed countries and the rates of utilization of pesticide and fertilizer are less than half, only 30% and 40% respectively. Moreover, every year 40% (about 50 tons) of vestigial agricultural films are left in the soil, and the effective utilization rate of water in agriculture throughout the country is only 40% at present, far below developed countries at 70–80%.10 7  He, Chuanqi. China Modernization Report 2012: A Study of Agricultural Modernization [M], Beijing: Peking University Press, 2012. 8  Ibid. 9   Cheng, Guoqiang, Entry into WTO and China’s Agricultural Development: China’s Agricultural Globalization in the Past 10 Years [N], China Economic Times, November 23, 2011. 10  Jiang, Changyun, Accelerate the Transformation of Agricultural Development Mode [J], China Development Observation, 2012 (5).

1 PROLEGOMENON 

5

Plastic pollution has become a major problem in rural areas. Many green mountains and bodies of water in the past have suffered desertification and pollution. While some rivers frequently flood, other rivers have simply dried up. All of these issues have a direct link with the destruction of the rural eco-environment. Therefore, the current agricultural development model contributes toward deterioration in the agricultural development environment and declining agricultural product quality. It also further endangers the health of citizens as well as the continued development of the national economy. Every era has its own issues, and it is believed that, once they are solved, human society will advance. Global warming and resource exhaustion have brought severe challenges to the survival and development of human beings. The construction of a resource-conserving and eco-friendly society (“resource and ecologically sound society”) has become a central topic in world economic and social development. It is an issue that every country in the world strives to solve, and represents the common ideals and shared mission that no country can disregard. The fifth Plenum of the 16th CPC Central Committee explicitly proposed to construct “a resource-conserving, environmentally friendly society”, and first integrated it into one of the strategic tasks for China’s national economic and social development in the medium- and long-term plans.11 It was elevated to an unprecedented height in The Twelfth Five-Year Plan for National Economic and Social Development. It was also put into practice and promoted worldwide as models by the State Council. Several cities were chosen by the State Council, such as Changsha-Zhuzhou-Xiangtan city cluster and Wuhan city cluster, to be the reform pilot area for building a “resource and ecologically sound society” by the 17th National Congress of the CPC. In the meantime, The Rise of the Central Area Planning, approved by the State Council in 2009, listed six cities in China’s central region, including Hubei and Hunan Provinces, as the most important grain production bases in the country and as critical areas for national food security. The 5th Plenary Session of the 17th CPC Central Committee has pointed out that China will take “resource and ecologically sound society” as an important support for accelerating the transformation of the economic development mode, further shedding light on its requirements, approaches, 11  Suggestions of the Central Committee of the Communist Party of China on Formulating the Eleventh Five-Year Plan for National Economic and Social Development [M], Beijing: People’s Publishing House, 2005.

6 

W. CHEN

and countermeasures.12 Experience over the past few years in Hunan Province proves that a “resource and ecologically sound society” is an innovative and inevitable choice for the government to accelerate the transformation of the development mode and the process of China’s economic and social society in an all-round, coordinated, and sustainable way. In 2011, China issued The Twelfth Five-Year Plan for Economic and Social Development, which serves as a guide for accelerating the development mode of economic transformation and a milestone from demonstration promotion to an all-round advance in constructing a “resource and ecologically sound society”. The 17th CPC National Congress proposed that “the transformation of economic development mode” should be regarded as a significant strategic deployment, and also explicitly stated that the transformation of the agricultural development mode should be considered an important task in transforming the economic development mode, as well as an area of importance and challenge for national economic transformation. The Third Session of the 17th CPC Central Committee noted that “…we should focus on accelerating the transformation of agricultural growth mode and building up an agricultural produce system featuring resource-­ conserving and environmentally friendliness which should be basically accomplished by 2020”.13 The report of the 18th CPC National Congress further stated, “We must give high priority to making ecological progress and incorporate it into all aspects and the whole process of advancing economic, political, cultural, and social progress, work hard to build a beautiful country, and achieve lasting and sustainable development of China”.14 Moreover, this was the first time the construction of ecological civilization was treated as a priority. The report also explicitly stated that the ultimate goal of the construction of a “resource and ecologically sound society” and realizing green, low-carbon, and recycling development is to build a beautiful China. As the ecological function of agriculture is more and more stressed, accelerating the transformation of the agricultural development mode and realizing sustainable agricultural development will inevitably become an important 12  Outline of the Twelfth Five-Year Plan for National Economic and Social Development of the People’s Republic of China [N], People’s Daily, March 17, 2011. 13  The Decision of the Central Committee of the Communist Party of China on Major Issues Concerning Rural Reform and Development [M], Beijing: People’s Publishing House, 2008. 14  March Unswervingly along the Path of Socialism with Chinese Characteristics and Strive for Building a Well-off Society in an All-round Way [N], People’s Daily, November 18, 2012.

1 PROLEGOMENON 

7

part of the construction of ecological civilization.15 The spirit, principles, and policies of the CPC Central Committee defined the contemporary content of agricultural development in the new era of China, and pointed out the strategic direction for the transformation of the mode of agricultural development. 1.1  A New Approach to the Transformation of Agricultural Development in a Populous Country Under the guidance of building a “resource and ecologically sound society”, China’s agricultural development must not only ensure the effective supply of farm products and realize the major strategy of national food security, it must at the same time ensure the accomplishment of multiple strategic goals to ensure the sustainable development of the national economy, for example food quality and safety, eco-environmental protection, resource conservation, and farmers’ income increases. Therefore, it is necessary to analyze property development, functional improvement, and the enhancement of effects of agriculture in the broader context of international and domestic development, and to evaluate the roles of resource endowment, material foundation, talent support, system guarantee, and the contribution of sci-tech as it plays out in China’s agricultural development. This is the initial condition for discussing the transformation of the agricultural mode by using historic vision and global perspective: to analyze a series of interwoven issues such as industrialization, urbanization, internationalization, and a populous nation; to analyze the transformation of the agricultural development mode concerning the transformation of other agricultural development mode; to examine farmers’ income and employment in terms of internal factors; to embrace the transformation of agricultural development in a “resource and ecologically sound society” as a strategy to enhance global competitiveness; and to strengthen the important function of agriculture as the root of national survival and economic growth in a populous country. This is undoubtedly an important historical issue with far-reaching influence in China’s agricultural development history.

15  The Compilation of Documents of the 18th National Congress of the Communist Party of China [M], Beijing: People’s Publishing House, 2012.

8 

W. CHEN

1.2  A New Direction of Chinese Agricultural Modernization Under Environmental Constraints As a dynamic process, agricultural modernization refers to a change in agricultural development since the eighteenth century. As the goals and tasks of different historical periods are different, patterns and development mode also vary. People usually regard western “petrified agriculture” in history as the direction of agricultural modernization. From the current perspective, the development mode of western agriculture deriving from previous modern industrial technologies is producing an increasingly significant negative effect: this development mode features “high investment, high energy consumption, high pollution and low output” and it further poses a threat to resources and environment as well as human health. This mode lacks sustainability, and requires a new way of thinking and a new mode of agricultural development. Therefore, the explicit purpose of building a new agricultural development mode under the guidance of a “resource and ecologically sound society” is definitely a turn away from “petrified agriculture”. However, this does not necessarily constitute a return to slash-and-burn agriculture. Different from industrialized agriculture, which gives economic development and GDP as well as overnight wealth top priority, “resource and ecologically sound” agriculture, as a new type of modern agriculture, is people-oriented, focusing on human well-being, and harmonious agricultural development between humans and nature. Its ultimate goal is to promote coordinated development between humankind and nature. As a new agricultural development mode featuring “low input, low energy consumption, low pollution and high output”, it not only draws inspiration from traditional agriculture but also overcomes the limits of Chinese traditional agriculture with the aid of modern technology and the strength of western industrialized agriculture. It organically integrates traditional Chinese agriculture with modern western industrialized agriculture and is furthermore an improvement of both as a new peak in a new historical period. This is not only an innovative exploration of the theory and practice of agricultural modernization with Chinese characteristics, but also novel content endowed with a “resource and ecologically sound society”, as well as a new direction for the development of China’s agriculture.

1 PROLEGOMENON 

9

1.3  New Strategies for China’s Agriculture to Cope with the International Game of “Carbon Politics” and “Carbon Economy” As global warming and energy depletion pose pronounced challenges to the survival and development of mankind, the international community have already taken relevant measures and actions. From the twists and turns of the “Kyoto Protocol” coming into effect to the formal introduction of the carbon cap, trading system, and carbon tariffs further issued by the EU countries, climate change has become a tool in the new round of competition in terms of industry, economic growth, and technology. The United States claims to have become a country that is leading the development of clean energy; the European Union will exert pressure and address climate change as an important foreign policy; developing countries are not only affected by climate change but also need to continuously increase their energy consumption, which will mean facing enormous pressure from resources and environment; and island countries worry about climate change leading to rising sea levels, and have therefore called for countries to set more stringent emission reduction targets. In the process of preventing climate change, there are political and economic games among countries. Climate negotiations will play an important role in future international trade. “Carbon politics” and “carbon economy” will become important themes of development strategies for all countries in the world. Although modern industry is the main culprit in climate change, the western industrial agriculture pattern has also played a role. In addition to relying heavily on depleting oil, large amounts of greenhouse gases released by the global agriculture, which exceeds 30% of the total anthropogenic greenhouse gas emissions, equivalent to 15 billion tons of carbon dioxide, has become a major culprit in global warming.16 China is the largest carbon emitter in the world. In 2009, the Chinese government officially announced its goal of controlling greenhouse gas emissions by 2020, and for the national carbon dioxide emissions per unit of GDP to drop by 40% to 45% of the 2005 rate.17 The “Twelfth Five-Year Plan” proposes a series of obligatory targets such as “the proportion of non-fossil fuels in 16  Gao, Fusheng, “Low-Carbon” Is Significant for “Mode Transformation” in Agriculture [N], China Special Native Product, May 12, 2010. 17  Zhu, Jianhong, China’s Set Target for Controlling Greenhouse Gas Emissions: China Takes an Active Role in Coping with Climate Changes [N], People’s Daily, November 27, 2009.

10 

W. CHEN

primary energy consumption should reach 11.4%; energy consumption per unit of GDP should be reduced by 17%”.18 As a global agriculture giant, it is imperative for China to transform its agricultural resource utilization mode from extensive to intensive and clean-oriented and to take “resource and ecologically sound agriculture” as its strategic direction to transform its agricultural development mode so as to comply with the international commitment, and shoulder the responsibility of major powers. Not only is this an emission reduction measure of far-reaching significance, it could also enhance China’s national security by improving resource utilization rates and reducing dependence on foreign resources so as to seize the strategic opportunities and take the pole position of future agricultural development, formulating a new strategy in the games of international “carbon politics” and “carbon economy”. 1.4  The Sinicization of Agricultural Economics and Development Economics In light of the major problems that have emerged in the course of China’s economic development, it is clear that it is usually western economics that provides corresponding theoretical frameworks and analytical tools. However, China and western countries, from which economics originates, are different in national conditions and require different policy supports. Therefore, there is an urgent need to go beyond the limits of the western industrialization mindset and modernization theory to seek answers for agricultural development. At the threshold of building a “resource and ecologically sound society” in China and considering the agriculture-­ related resources and environmental characteristics, we have to work hard to reach a balance among the targets in transforming China’s agriculture under environmental constraints. Motivated essentially by agro-scientific and technological innovations, the transformation of the utilization patterns of resource will be accelerated and a “resource and ecologically sound agriculture”-oriented production system will be established. After this, the rural social service system is to be transformed by the rural informatization breakthrough. These institutional innovations in “resource and ecologically sound” agricultural development will ensure the transformation of the agricultural development mode and reveal effective ways to transform traditional Chinese agriculture. 18  Outline of the Twelfth Five-Year Plan for National Economic and Social Development of the People’s Republic of China [M], Beijing: People’s Publishing House, 2011.

1 PROLEGOMENON 

11

2   Main Questions and Content Due to the late start of agricultural modernization in China, the constraints of capital, technology, information and industry, the scarcity of resources, the increasingly severe environmental constraints, and the realistic context of the rapid rise of international climate politics, there are five questions that urgently need to be answered in relation to the transformation of the Chinese agricultural development mode in the construction of a “two oriented society”. 1. In the construction of a “resource and ecologically sound society”, what is the inherent link between the construction of a “resource and ecologically sound society” and the agricultural development mode? 2. What are the connotations, directions, and goals of the transformation of China’s agricultural development mode and how to accelerate the transformation of China’s agricultural development mode in constructing a “resource and ecologically sound society”? 3. What is the inner motivation of China’s agricultural development in constructing a “resource and ecologically sound society”? 4. What is the fundamental way to achieve the transformation of “resource and ecologically sound” agricultural development? 5. What kind of institutional support is needed to transform China’s agricultural development mode in the construction of a “resource and ecologically sound society” and how to promote institutional innovations in the transformation of China’s agricultural development mode? To answer these questions, we first need to figure out the direction and objectives of agricultural development in the construction of a “resource and ecologically sound society” in theory. Second, we need to delineate the actual path to achieving these goals in practice. Third, to achieve these goals, we need to carry out institutional innovations. The answers to the above five questions constitute the logical thinking of this study: multiple objectives → ways to achieve → institutional innovations. This is also the framework of this book. In the target system, because the transformation of agricultural development is by no means merely an issue of economic development, the theory of economics alone cannot satisfactorily answer this question. This book, therefore, first starts from the perspective of multidisciplinary integration and takes the development of China’s agricultural resource and environmental pressure, the strategic position of agriculture in the sustainable development of the national economy, and the multi-functionality of

12 

W. CHEN

modern agriculture as the starting point to present the multiple goals of the development and transformation of China’s “resource and ecologically sound agriculture”. In terms of realization path, questions of how to increase farm products, efficiency, quality, safety, and ecological function must be addressed to accelerate the transformation of the agricultural development mode. The book responds in three respects: the ways resources are used, the shift in agricultural production systems, and the transformation of the social service system for agriculture. Among them, the transformation of using essential resources can solve the problem of how to increase agricultural labor productivity, land productivity, and resource utilization to increase production and efficiency. The core of transformation lies in agro-­scientific and technological innovations. The transformation of the agricultural production system and commercialized rural service system is the path to achieve high quality, safety, and ecology. The answers to these three questions form the main part of this book. Finally, in order to achieve the above goals, it is also necessary to establish a guarantee mechanism to achieve institutional innovations. Based on this and against the background of accelerating urban—rural integration in China according to the overall objective of building a “resource and ecologically sound society”, this book incorporates the transformation of agricultural development into the construction of a “resource and ecologically sound society”, and the coordinated development of industrialization, urbanization, and agricultural modernization. On the basis of the updated changes and requirements of the development of modern agriculture at home and abroad, we give priority to Chinese characteristics and a “resource and ecologically sound society” following the sequence of “multiple goals → achieving approaches → institutional innovations”, focusing on the multiple targets in transforming the Chinese agricultural development mode, inner motivations, approaches, and supporting systems under environmental and resource constraints. Based on the experience of “resource and ecologically sound society” reform pilot areas in ChangshaZhuzhou-Xiangtan city cluster and Demonstration Province of Chinese Rural and Agricultural Informatization in Hunan Province, we aim to achieve the goals of national food security, resource conservation, rural ecoenvironment governance and protection, farm products quality and safety, farmers’ income and agricultural efficiency, and the sustainable development of the national economy. We take the essential resources of agricultural development, production system, social services, and accelerating the

1 PROLEGOMENON 

13

transformation of the industrial system as the core of research, exploring effective ways to transform the mode of agricultural development in China. These include the accelerated transformation of the utilization patterns of resources motivated by agro-scientific and technological innovations, “resource and ecologically sound agriculture”-oriented agricultural production system transformation, the transformation of the commercialized rural service system with rural informatization as the breakthrough, and the transformation of government functions in agriculture powered by agricultural institutional innovations. Thus we will build a theoretical framework for transforming the agricultural development mode in the construction of a “resource and ecologically sound society”, taking “resource and ecologically sound agriculture” as the strategic direction, scientific and technological innovations as the major propeller, rural informatization as the breakthrough, and agricultural institutional innovations as the guarantee. It will be suitable for the specific Chinese situation, but different from that of western countries so as to surpass the historical development norms of western industrialized agriculture and directly enter the new stage of modern agricultural development—“resource and ecologically sound” agriculture. The main content of the book is as follows. 2.1  The Multiple Targets of China’s Agricultural Development Transformation under Resource and Environmental Constraints Starting from the multiple targets of China’s agricultural development transformation under resource and environmental constraints, this book focuses on core issues such as the status quo and trends of resource and environmental constraints in China’s agricultural development, the multiple target composition and structure of agricultural development in China, and the multi-targeted agricultural transformation decision-­making under the constraints of resources and environment. This book analyzes the construction of a “resource and ecologically sound society” and the transformation of agricultural development, puts forth the strategic direction of China’s agricultural development mode transformation under the constraints of resources and environment, and explores the multiple targets of China’s agricultural development and transformation. These targets are as follows: under the precondition of ensuring food safety in a populous nation, it is necessary to realize the transformation of national economy, speed up the integration of urban and rural development, guarantee farm products quality, promote resource conservation and eco-­friendliness, increase farmers’ income, and improve agricultural efficiency.

14 

W. CHEN

2.2  The Transformation of the Utilization Mode of Resources with Agro-Scientific and Technological Innovations at the Core This book puts forward the basic proposition that agro-scientific and technological innovations are the endogenous impetus to speed up the transformation of agricultural development in the process of building a “resource and ecologically sound society”. Furthermore, this book analyzes the demand and development direction of agro-scientific and technological innovations under the constraints of resources and environment, and discusses expediting the importance of scientific and technological innovations to improve the contribution rate of agro-technological progress. It also touches on speeding up agricultural labor-saving technological innovations, optimizing the allocation of human capital and improving labor productivity, accelerating agricultural resource-conserving technological innovations, improving land productivity and resource utilization, and accelerating rural technological innovations of environmental protections so as to promote resource conservation and sustainable agricultural development. 2.3  “Resource and Ecologically Sound Agriculture”-Oriented Agricultural Production System Transformation The “resource and ecologically sound” agricultural production system, standardized agricultural production system, agricultural non-point sources pollution prevention and control system, disaster prevention and mitigation system, and species resource protection system are to be constructed in line with the requirements of a “resource and ecologically sound society” construction, and accelerating the transformation of an economic development mode targeted at high production, good quality, high efficiency, ecological protection, and safety. In order to realize quantitative comparison of different regions and different periods, we must enhance the practical operation of policies and the evaluation of development. For this, we establish an evaluation index system for the development of “resource and ecologically sound agriculture” and conduct empirical research.

1 PROLEGOMENON 

15

2.4  The Transformation of Commercialized Rural Service Systems with Rural Informatization as a Breakthrough From the perspective of the interaction between informatization and commercialized rural service systems, this book analyzes the impact and deconstructive effect of informatization on the traditional rural social service system and explores the realization mechanisms for China’s rural commercialized service system. This book then goes on to prove that rural informatization is indispensable in realizing rural commercialized social services. By analyzing empirically the supply and demand of rural informatization services and key technologies in the construction of a “resource and ecologically sound society”, the book focuses on the selection of the rural informatization service mode and platform construction, and discusses the problems of organization construction, operation, and the guarantee mechanism in a rural informatization service system. On this basis, this book studies the construction of the rural information service system, focusing mainly on sci-tech promotion in China’s agricultural development, agricultural production, product circulation, and product quality and safety. 2.5  Institutional Innovations in the “Resource and Ecologically Sound” Agricultural Transformation To speed up “resource and ecologically sound agriculture”, it is necessary to promote the transformation of government functions from managing agriculture to serving agriculture, from the single goal of ensuring supply of farm products to the multiple goals of increasing land productivity, labor productivity, resource utilization efficiency and comprehensive agricultural production capacity, protecting the eco-environment, and increasing farmers’ income and promoting sustainable development of the economy, thus fully functioning as economic regulators, market supervisors, society managers, and public servants. To build the guarantee mechanism for making China’s agriculture “resource and ecologically sound”, it is important to innovatively set up institutional systems such as talent development, land circulation, effective farmland resources utilization and protection, national scientific and technological innovations, financial support, rural finance, eco-environment governance and protection, government appraisal, and rural social management.

CHAPTER 2

Agricultural Development Mode: Relevant Theoretical Research at Home and Abroad

The transformation of the agricultural development mode is a new proposition for China’s modern agricultural development and a profound revolution in the history of agricultural development in China. Before the “agricultural development mode” was put forward at the Third Plenary Session of the 17th CPC Central Committee, the 15th National Congress of the Party had proposed the concept of “transforming the economic growth mode” and subsequently the concept of “agricultural growth mode”. Many scholars believe that the content of “agricultural growth mode” includes: resource intensity concentrated on per unit land area, the satisfaction of growth targets, the utilization efficiency of production factors, the driving force behind the growth mechanism, and the regional characteristics of growth mode.1 The transformation of agricultural growth mode is essentially a process of technological progress and the optimal allocation of resources. The major impact of the system on economic growth will determine the allocation of resources and economic efficiency.2 The Third Plenary Session of the 17th CPC Central Committee pointed out that the transformation of agricultural development mode should be accelerated in accordance with the requirements of high yields, good 1  Tang, Zhong & Sun, Taosheng. On Agricultural Growth Mode [J], Xinjiang State Farms Economy, 1998 (01). 2  Wu, Fangwei. The Key to Increase and Key Increase: Again on Agricultural Growth Mode Transformation, Issues in Agricultural Economy, 2009, (12).

© The Author(s) 2020 W. Chen, Challenges and Opportunities for Chinese Agriculture, China and Globalization 2.0, https://doi.org/10.1007/978-981-15-3536-9_2

17

18 

W. CHEN

quality and high efficiency, ecological protection, and safety. Then why should we transform agricultural development mode?3 What are the connotations? Is the transformation of agricultural development mode endogenous or exogenous? What are the constraints? These are timely topics that urgently need to be explored before China realizes modern transformation in agriculture. Domestic scholars generally believe that the agricultural development mode refers to the methods, means, and patterns to realize agricultural development. Transforming the agricultural development mode is to improve the quality of agricultural development. Mainly through technological innovations and based on optimizing the structure, improving efficiency, reducing energy consumption, and protecting the environment, it will achieve comprehensive and coordinated development, which means the coordination of speed, quality, and efficiency; the coordination of investment and consumption exports; the coordination of population, resources, and environment; and the coordination of economic and social development.4 In developed countries, the main goals of agricultural modernization are commercialization and marketization, with the aim of improving agricultural labor productivity. This kind of development mode improves agricultural labor productivity through technological progress and institutional innovations, but there are also a series of problems such as food safety and environmental pollution. The transformation of agricultural development mode is not only an issue of efficiency, but also a game equilibrium of multiple objectives such as efficiency, environmental protection, and safety. The transformation of agricultural development mode refers to agricultural development factors, development mechanism, development path, and a series of structural changes. It mainly includes “the changes of input factors based on technological progress, the changes of growth mechanism based on agricultural market system, the changes in the path selection of resources and environment constraints. Meanwhile, it also includes structural changes such as farm products structure, consumption structure, income structure, market structure and institutional structure, with a view to 3  The Compilation of Documents of the Third Plenary Meeting of the 17th Central Committee of the Communist Party of China [M], Beijing: People’s Publishing House, 2008. 4  Tang, Sihang & Han, Xiaoqin. Changes of the Agricultural Developing Mode Is the Key of Modern Agricultural development [J]. Social Sciences of Beijing, 2010 (2).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

19

achieving the transformation from extensive to intensive agriculture and from traditional agriculture to modern agriculture”.5

1   The Neoclassical Production Functions and Agricultural Development Mode: Theoretical Basis and Its Consequences for the Development of Traditional Agriculture For a long time, the neoclassical production functions have been used to describe agricultural productive relations. The increase of farm products, that is, the development of agriculture, is the result of maximizing the specific input portfolio. As the input of a certain production factor increases, the production function increases from an increasing rate to a decreasing rate until the function reaches its maximum value and begins to decline. The increase of variable input leads to a decrease of the total output. Put simply, output is a function of all the elements, namely p=f (a, b, c …). The meaning can be expressed as follows: If the number of inputs changes, then the number of outputs will change with it. In addition, the change mode has some features6 from which can be seen the change of production mode. Following the requirements of the neoclassical three-­ stage production function, the key to agricultural development is to increase the input of the elements. This production function, which raises production by increasing input, obscures the relationship between productive knowledge, production function, and technical efficiency. This problem wasn’t solved until the publication of Sune Carlson’s Pure Theory of Production in 1939. In the production theory, research methods that directly consider production methods rather than “putting it in the production function” have arisen, making the relationship prominent. These new methods include linear models of production and extended forms of

5  Zeng, Fusheng & Kuang, Yuanpei. Develop Modern Agriculture and Advance the Transition of the Development Mode of Agricultural Economy [J]. Science & Technology and Economy, 2010 (4). 6  Wicksteed, P.H. (1894) An Essay on the Co-ordination of the Laws of Distribution [EB/ OL], Macmillan & Co., London. At http://cepa.newschool.edu/het/texts/wicksteed/ wickess.pdf

20 

W. CHEN

those models, such as process analysis, non-linear programming, and game theory.7 The linear behavioral analysis framework, established by Koopmans, makes a workable, abstract description of the technology level and introduces it into economics. At first, productive knowledge is described by the framework as “basic activity”, and it is formally expressed as a technical vector. At the same time, it is considered to correspond to a concrete “method of doing things” that can be identified. Subsequently, the theory cites a set of basic principles to describe how the productive knowledge represented by basic activities is scaled up, how it is combined, and how it is modified. The core assumption of these principles is that, while maintaining a constant proportional relationship between input and output, the basic activities can scale up or down as appropriate. This means that, assuming that there is only one output for a given production process, if specific digital forms can be given to all the basic activities, then in principle, the maximum output that a given combination of inputs can produce will be certain through the calculation of production function. The “productive knowledge” in the linear behavioral analysis framework established by Koopmans can be extended, combined, and modified. That is, the technology is variable, but the model does not address the root causes of changes in productive knowledge, which leads to an economic phenomenon wherein neoclassical production function cannot analyze the change of development mode. With the evolution of the general equilibrium theory developed by Arrow, Debreu, and other economists,8 another abstract expression model of technological possibilities is gradually gaining prominence in economic theory. This approach goes straight into the abstract core of things and further generalizes the previous model. The quantity of product output is expressed by a vector: q=q1, q2 … qM. The input vector is represented by x=x1, x2… xM. These inputs may or may not produce the above output products. If x can produce q, the input—output combination (x, q) is “in production set” or in production possibility set. In this kind of expression, all known or deemed acceptable attributes of the technical knowledge 7  Von Neumann, J. & Morgenstern, Oskar. Theory of Games and Economic Behavior [M], (Trans.) Wang, Jianhua & Gu, Weilin. Beijing: Science Press, 1963; Koopmans, T. C. Economics among the Sciences [J], The American Economic Review, 69, pp. 1–13. 8  Arrow, K. J. & Debrue G. Existence of an Equilibrium for a Competitive Economy [J], Econometrica, 22 (1954): pp. 265–290.

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

21

structure are considered as the basic elements of the production set attributes. In general equilibrium theory, technology is still exogenous or given. In the “input—output” combination, technology is the bond of various input elements, and the change comes from the artificial setting. Technology isn’t considered as a new element in economic development until the Solomon remainder, thereby incorporating technological progress into the theory of economic growth and pushing the production function theory into a new stage.9 The traditional agricultural development in China mainly depends on increasing factor inputs. Its connotation is basically the same as that described by the neoclassical production function. In order to ensure a steady increase in national grain output, investment in production factors such as land, capital, fertilizers, pesticides, and labor is continually added. This agricultural production mode not only results in the waste of resources, but also brings about serious pollution. The census results of pollution sources show that agriculture is responsible for 47% of chemical oxygen demand (COD) emissions and more than 50% of nitrogen and phosphorus emissions. Therefore, it is an arduous task for agricultural development to strengthen the support for material technology, improve the utilization rate of resources, and reduce environmental pollution.10 The natural resources of China’s agricultural production have been relatively scarce. The per capita farmland area is only one-third of the world average. Along with urbanization and industrialization, roads and infrastructural facilities continue to develop, and thus farmland is decreasing at an annual rate of 200,000 hectares. It is estimated that per capita farmland will decrease from 0.08 hectares to 0.06 hectares in 2020 and 0.05 hectares in 2030.11 According to David Romer’s “growth drag” theory in natural resources, Cui Yun has calculated that the “growth drag” of China’s land resources was about 1.26 per cent annually from 1978 to 2005. That is, due to the consumption of land resources, China’s economic growth rate dropped by an average of 1.26% annually.12 It can 9  Robert, M. S. Technical Change and the Aggregate Production Function [J]. The Review of Economics and Statistics, Vol. 39, No. 3. (Aug., 1957), No. 1, 1956, pp. 312–320. 10  Chen, Xiwen. The Situation and Overall Thinking of Rural Reform and Development [J], Chinese Cadres Tribune, 2009 (8). 11  Tang, Huajun et  al. Land Use in China: On Cover Change [M], Beijing: China Agricultural Scientific and technological Press, 2004. 12  Cui, Yun. An Analysis of “Drag” of Land Resources in China’s Economic Growth [J]. Economic Theory and Business Management, 2007 (11).

22 

W. CHEN

be seen that land resources have become an important constraint for China’s economic development, especially for agricultural development. From the regional perspective, with the development of the economy, the non-agriculture phenomenon of farmland resources will inevitably occur in the developed eastern areas and the central suburbs. These areas should strengthen the dynamic supervision over the utilization of farmland resources and implement the resource-conserving urbanization policy to avoid overly non-agriculture usage of farmland resources. In the western region, where the eco-environment is relatively fragile,13 with the accelerating process of urbanization and continuous conversion of farmland into non-agricultural construction land, the phenomenon of inefficient and extensive use of land resources is widespread in reality. Therefore, the construction of a “resource and ecologically sound society” and the conservation and utilization of land resources are consistent.14 Agricultural production dominated by factor inputs has been unsustainable in China and must be changed. The current agricultural development mode relies greatly on inputs of chemical fertilizers and pesticides. Based on chemical fertilizers and pesticides, technological advances are the main sources of agricultural growth in China. Statistics show that over the past 40 years, the total amount of chemical fertilizers in China has a significant or very significant positive correlation with the total output of grain and cotton, as well as the relationship between unit area application of chemical fertilizers and the yield of grain and cotton. The use of fertilizers is responsible for 30–50% of China’s grain production.15 In China, fertilizer is the largest input material in agricultural production. It is estimated that fertilizer input generally accounts for 30% ~ 40% of all matter and energy inputs in grain ­production of China and even as high as 50% in some high-yielding areas. In 2004, the cost of Chinese farmers buying fertilizers has reached ¥180 billion. In 2010, China’s chemical fertilizer application rate exceeded one-­third of 13  Xu, Guangyue. The Relationship between Farmland Resources and Economic Growth: An Empirical Analysis Based on Chinese Provincial Panel Data [J]. Chinese Rural Economy, 2009 (10). 14  Xiao, Xiangxiong & Liu, Hao. Research on the Innovative Mode of Farmland Operating in Two-oriented Society [J]. China Development, 2010 (4). 15  Yang, Liping et al. Comprehensive Evaluation of Soil Nutrients Balanced Fertilization Technique and Its Industrialization [J]. Phosphate & Compound Fertilizer, 2001 (4); Zeng, Xibai & Li, Jumei. Fertilizer Application and Its Effect on Grain Production in Different Counties of China [J]. Scientia Agricultura Sinica, 2004 (3).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

23

the world’s total. As the largest fertilizer-consuming country in the world, farmland in China is fertilized by 30.5kg per mu (≈ 666.7m2), far exceeding the upper limit of the safe use of fertilizers prescribed by developed countries.16 The application of chemical fertilizers in agricultural production in China is not only large in quantity, but also low in utilization rate, unreasonable in use, and serious in waste, showing obvious overuse conditions. It is estimated that only 35% of these fertilizers have been effectively utilized,17 less than 10–15% of developed countries. There is a negative correlation between fertilizer utilization ratio and its application rate. Studies have shown that under low fertilizer (120 kg/hectare), the nitrogen utilization ratio can reach 45% and the winter wheat nitrogen loss rate is less than 9%, but when the amount of nitrogen fertilizer increased to 360 kg/hectare, nitrogen use efficiency is only 23%, and the loss rate is as high as 55%. At present, the seasonal utilization rates of nitrogenous fertilizers, phosphate fertilizers and potash fertilizers in China are only 30%–35%, 10%–20%, and 35%–50% respectively, lower than those in developed countries by 15–20%. The irrational application of fertilizers leads to enormous waste of resources: over 4 million tons of chemical fertilizer each year.18 Some studies even state that more than 30% of the waste nitrogen in fertilizer use in China is lost to farmland each year, leading to groundwater pollution and ecosystem eutrophication in rivers, lakes and shallow waters. At the same time, a large amount of nitrous oxide gas volatilizes into the air, forming three-dimensional pollution that expands “from the ground to the air”.19 It is clear that the over-fertilization caused by the existing agricultural development not only reduces the quality of farm products, increasing the agricultural production costs, but also causes serious pollution to the environment.20 In addition, as the world’s largest consumer of pesticides, annual pesticide consumption in China is between 800,000 and 1,000,000 tons. Among these pesticides, toxic chemical 16  Gong, Qianwen et al. An Analysis of Factors Affecting Farmers’ Over-fertilization Risk Cognition and Evasion Ability [J]. Chinese Rural Economy, 2010 (10). 17  Liu, Qingsong. Types and Hazards of Soil Pollution [J]. Environmental Herald, 2002 (5). 18  Zhang, Fusuo et  al. Discussion on Fertilizer in an Era of Modern Agriculture [J]. Phosphate & Compound Fertilizer, 2003 (1). 19  Ma, Defu & Liu, Xiuqing. On Agriculture and “Two-oriented Society” and “Twooriented Agriculture” [J]. Hubei Social Sciences, 2010 (12). 20  Li, Jun et  al. Discussion on the Establishment of Safety Standards for Exporting Vegetables and Animal-derived Foods from China [J]. China Standardization, 2003 (1).

24 

W. CHEN

pesticides account for a large proportion and some banned pesticides are still in use. Pesticides are not only used in large quantities but also in low utilization. The utilization rate of pesticides in China is only 20%–30%, which not only causes serious waste, but also directly endangers water and food safety, human health, and environment.21 Is there a possible equilibrium between agricultural development and environmental friendliness? Based on data from 1978 to 2009  in Jiangsu Province, Jihong Ge and Shudong Zhou have conducted empirical analysis on the economic factors of agricultural non-point pollution. The results show that when the scale of agricultural economy is expanding, the proportion of aquaculture in agriculture is increasing while the proportion of planting industry is decreasing, the proportion of cash crops is rising while the proportion of grain crops is declining in plantation structure, and the expansion of rural population will increase the emission of agricultural non-point source pollutants.22 However, agro-technology progress and the implementation of the agricultural non-point pollution control policy can effectively reduce the agricultural non-point source pollutant emissions, which shows that the coordination of agricultural economic growth and environmental protection is achievable. Agricultural development does not mean that the environment must be sacrificed, while environmental protection does not necessarily mean the cost of agricultural recession. The key is to change the current mode of agricultural development. In the current agricultural development mode, the input of fertilizers and pesticides has been on an upward trend since 1960 to ensure the increase of grain output. The density of fertilizer application increased from 7 kg/hectare in 1960 to 47.03 kg/hectare in 2008 and the proportion of rural land (rural land/land area) increased from 37% in 1960 to 56% in 2008.23 This is a typical agricultural development mode that depends on input factors. The scarcity of natural resources in agricultural production in China is manifested not only in land resources but also in the shortage of water resources. China’s water resources are only about  Fu, Zetian et  al. 1998. Over-Use of Pesticide and Approaches to Reduce Pesticide Dosage [J]. Transactions of the Chinese Society of Agricultural Engineering, 1998 (2). 22  Ge, Jihong & Zhou, Shudong. Economic Factors for Agricultural Non-point sources pollution: An Analysis Based on the Data of Jiangsu Province (1978–2009), Chinese Rural Economy, 2011 (5). 23  He, Chuanqi. China Modernization Report 2012 [M]. Beijing: Peking University Press, 2012. 21

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

25

one fourth of the world’s average water resources, ranking 109th in the world.24 The total annual water consumption is about 550 billion cubic meters, of which agricultural water accounts for 70%. The severe shortage of water resources and the serious waste of agricultural water occur at the same time. According to related data, the water conveyance efficiency in irrigated areas is 30% ~ 40%, whereas it is 70% ~ 90% in developed countries. The utilization rate of water resources is only 20% ~ 30%, and the production efficiency of each cubic meter is only 0.8 kg, while the rate in Israel is 2.3 kg per cubic meter.25 The utilization rate of water resources in China is low, and water resources are heavily polluted. According to the first national census bulletin, China’s agricultural source emission COD was 1324.09 million tons in 2007, accounting for 43% of the total national emissions; total nitrogen was 2.7046 million tons, accounting for 57% of the total emissions; and total phosphorus was 0.2847 million tons, accounting for 64% of total emissions. This has caused serious pollution and threats to the aquatic ecosystem, resulting in excessive levels of nitrates and arable metal in groundwater resources.26 Thus, it is clear that the agricultural development mode based on the input of factors can guarantee food security of the country, but at the expense of huge resources and environmental damage. Due to the heavy consumption of resources and serious pollution to the environment caused by traditional agriculture, Chinese society as a whole reflected on the traditional mode of agricultural development. In 2007, The No.1 Central Document clearly pointed out that the core requirement of taking the agricultural modernization road with Chinese characteristics was “raising land productivity, resource utilization rate and agricultural labor productivity”. This view was emphasized in the decision of the Third Plenary Session of the 17th CPC Central Committee. The core requirement of modern agriculture has not only pointed out the direction for the development and transformation of agriculture, and provided an

 Zhao, Chunjiang. Research and Practice of Precision Agriculture [M], Beijing: Science Press, 2009. 25  Department of Sci & tec for Rural Development, Development Strategy for China’s Modern Water-Saving and High-Efficiency Agricultural Technology [M], Beijing: China Agricultural Scientific and technological Press, 2006. 26  Xue, Liang & Hao, Weiping. Strengthen Scientific and Technological Innovation to Improve Agricultural Water Productivity [J]. Issues in Agricultural Economy, 2012 (5). 24

26 

W. CHEN

important basis for the evaluation and mode selection of modern agriculture,27 but has also set forth intrinsic requirements for the transformation of agricultural development mode.

2   The Transformation of Agricultural Development Mode: Investigation Based on Classic Occidental Economics and the Neoclassical Economics From the perspective of historical development, the mode of economic development (growth) is based on the self-selection of existing elements. However, the great differences in economic development in various countries during the same period have proved that different economic organizations and their development modes have diverse economic performances, leading to differences between the rich and the poor. Before the 1940s and the 1950s, economic development and economic growth were regarded as the same concept by economic theorists. Economic development was seldom used. The key to the separation between development and growth is that developed countries have no differences in “urban-­ rural dual structure” in their economic structure. The market is the basic means of resource allocation. There is neither the integration of urban and rural areas nor the transition of systems. The main problem is how to increase the output of the national economy in order to realize national prosperity. In economics, the earliest and most systematic study of economic development was carried out by Adam Smith, the founder of Classic Occidental Economics. He proposed the famous “Smith Theorem” and believed that the main driving force of a country’s economic development is the division of labor, capital accumulation, and technological progress.28 When industrialization in Britain was not yet complete, Adam Smith observed that institutional problems, such as labor division, organization, 27   Jiang, Heping & Huang, Delin. Econometrics Evaluation of China Agricultural Modernization [J]. Research of Agricultural Modernization, 2006 (2); Zhang, Zhonggen & Ying, Fengqi. Theory, Approach and Application of the Evaluation of Sustainable Development in Agriculture [M], Beijing: China Agriculture Press, 2003; Huang, Zuhui et  al. The Essential Stipulation and Its Drift of the Co-operatives [J]. Journal of Zhejiang University (Humanities and Social Sciences), 2009 (4). 28  Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations [M]. Beijing: The Commercial Press, 1974.

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

27

and coordination, play an important role in economic development. Although these are closely linked to the problems of the economic development mode, Adam Smith focused more on the growth of the total economic output. He didn’t realize the importance of changing economic development mode in economic development, thus ignoring the major issue of the transformation of development mode. With the evolution of economics, the transformation of development mode has been further covered up. Malthus and Ricardo, the other two representatives of Classic Occidental Economics, paid attention to the role of population, capital, and resources in economic growth, but they didn’t attach great importance to factors such as labor division and technological progress. Therefore, they only reached a conclusion that a country’s per capita income will converge to its static equilibrium level in the long term.29 This conclusion affected many later scholars, including the Roman Club in the twentieth century, and Lester Brown, the author of Who Will Feed China?30 These studies only focus on the scarcity of resources, ignoring the tremendous initiative of human knowledge accumulation, and the fact that this knowledge is an important variable in the process of economic development.31 “Based on knowledge accumulation, this endogenous model of economic growth (development) is the highest level that neoclassicism economics can currently achieve. It believes that knowledge which can be acquired through learning is caused by economic progress, and that the change is the product of economic stimulus. The economic stimulus refers to the possibility of temporary economic profit brought by patent or merely the advantages of a new thing, thus increasing returns to scale in a country”.32 Neoclassical growth theory tends to look for mathematical relations, ignoring labor division, system, organization, and other factors. Therefore, in its analytical framework, it only emphasizes the changes of 29  Malthus, T. R. An Essay on the Principle of Population [M], Shanghai: Shanghai People’s Publishing House, 1978; Ricardo, David, On the Principles of Political Economy and Taxation [M], London: London Press, 1817. 30  Lester Russell Brown, Who will Feed China? Wake-Up Call for a Small Planet [M], W. W. Norton & Company, 1995. 31  Arrow, The Economic Implications of Learning by Doing [J], Review of Economic Studies, 1962; Romer, David. Advanced Macroeconomics [M], Beijing: The Commercial Press, 1999; Lucas, R. E. Jr. Models of Business Cycles [M], Beijing: China Renmin University Press, 2003. 32  Lynn, Stuart R. Economic Development: Theory and Practice for a Divided World [M], Shanghai: Gezhi Publishing House, 2009.

28 

W. CHEN

resource endowments and the degree of technological progress, but neglects the change of economic development mode.33 Based on the rational economic man hypothesis, Classic Occidental Economics and neoclassical economics ignore the transformation of economic development mode in the course of economic development. Adam Smith notes that “everyone is trying to apply his capital to maximize the value of his products. Generally speaking, he did not seek to promote public welfare, nor did he know how much he had increased. What he sought was only his personal happiness and personal interests”.34 Therefore, Classic Occidental economists, represented by Adam Smith, believe that personal interest is a universal and the only constant human motivation. The “rational” of economic man is reflected in whether motivated by self-­ interest, with least economic costs to chase and obtain the maximum economic benefits. Neoclassical economists, represented by Milton Friedman, further believe that market competition represents “the survival of the fittest” and maximizing behavior is an effective act that is similar to the “fittest” who survives and multiplies in nature.35 Organizing production in the optimal way is the inner logic of the rational economic man in Classic Occidental Economics and neoclassical economics. Since the “complete information” is contained in the logic, the optimal allocation of resources is the inevitable choice of the micro-economic subjects. Therefore, economic growth mode and economic development mode are not the same problem in the analytical framework of classical and neoclassical economics.36 Taking the transformation of the agricultural development (growth) pattern as the rational choice of farmers under existing conditions is an effort by neoclassical economics trying to endogenize it in the agricultural economy development. Schultz argues that farmers’ behavior in traditional agriculture is rational and that the available resources are optimally configured with experience. Meanwhile, there is also a positive and timely response to the favorable economic stimulus. Farmers’ poverty is due to 33  Liu, Yuxiang. Transformation of Agricultural Development Mode: Foreign Theories and Methods [J], Guizhou Social Sciences, 2012 (8). 34  Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations [M]. Beijing: The Commercial Press, 1974. 35  Friedman, Milton. Price Theory:A Provisional Text [M], Beijing: Huaxia Publishing House, 2011. 36  Liu, Yuxiang. Transformation of Agricultural Development Mode: Foreign Theories and Methods [J], Guizhou Social Sciences, 2012 (8).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

29

the lack of adequate economic and technological opportunities in most of the poor countries that enable farmers to respond. Investment is the key for farmers to make traditional agriculture a productive resource for economic growth in poor countries. This is because, on the one hand, economic growth depends mainly on the quality of labor force. To improve the quality of labor force, it is necessary to invest in education, on-the-job training, health care and population mobility to form human capital; and the size of human capital stock determines the process of accelerating economic growth. On the other hand, the trend of economic growth is uneven, requiring the ability to deal with this imbalance. While introducing new technologies to adjust the production process, we must constantly change the production structure so as to adapt to the ever-changing structure of social needs. To this end, economic managers need to accept education to deal with this challenge in time.37 As a representative, Schultz argues that investment can change farmers’ constraints. This is a breakthrough in neoclassical economics, but it still fails to include the agricultural development mode in its theoretical analysis framework. After Schultz explores the source of agricultural growth and introduces Alan Young’s theory of increasing returns into the agricultural development theory, he succeeds in incorporating the agricultural growth pattern into neoclassical economics, which is a revolutionary feat. The reason is that achieving increasing returns through resource optimization seems to be a quest beyond normal economics.38 Diminishing returns is a consensus of neoclassical economics. In his classic paper “Increasing Returns and Economic Progress”, Allyn Young rediscovers Smith’s division of labor theory and proposes that “the realization of increasing returns depends on the evolution of labor division”. He also points out that “the division of labor depends on market size, while the size of the market also depends on the division of labor”. All these views constitute the main content of the famous Young Theorem.39 According to the theory of diminishing returns, Schultz argues that the increasing returns of agriculture are derived from specialization, generating returns through professional human capital. If 37   Schultz, Theodore W. Transforming Traditional Agriculture [M]. Beijing: The Commercial Press, 1987. 38  Schultz, Theodore W. Origins of Increasing Returns [M]. Beijing: Peking University Press, 2001. 39  Young, A. 1928, Increasing Returns and Economic Progress [J], Economic Journal, Vol. xxxviii.

30 

W. CHEN

the corn farmers no longer produce farm products other than corn, nor do they breed. Instead, they buy high-quality varieties that are suitable for planting in the region, thus increasing the degree of specialization, which is the main reason for the increasing output.40 Therefore, the specialized division is the premise of intensive agricultural production, and specialized production is the main focus of transforming the agricultural development mode. However, increasing return is not included in the general equilibrium theory of neoclassical economics, because all kinds of increasing returns will bring imbalance. In the event of an imbalance, there is an opportunity to profit from the reallocation of resources; and it is the entrepreneur who discovers the opportunities and benefits from it over time.41 Therefore, Schultz includes the entrepreneurs and specialization division in the general equilibrium theory to construct the agricultural development model. He also deconstructs the change of agricultural growth mode with increasing returns, but this goal has not been achieved. This is because Schultz, like other neoclassical economists such as Marshall, views entrepreneurs as a production factor, believing that only entrepreneurs can provide valuable services, supply and demand functions, and an enterprise market. Therefore, linking “entrepreneurial talent” as an element to education, he thinks that only entrepreneurs can make investments. It is not hard to see that Schultz’s judgment of “entrepreneur” is entirely based on the balanced paradigm of neoclassical economics.42 Schultz may be aware of the limitations. He points out that “due to the omission of the nature of the imbalance in economic growth process and the neglect of the economic value that entrepreneurs have made in dealing with these imbalances, there emerged two major defects in the Growth Economics”.43 To remedy these two flaws, Schultz affirms the contribution of Schumpeter’s ­entrepreneurial innovation theory, regarding it as a “notable exception”. Schumpeter tries to blend the concepts of “equilibrium” and “creative destruction”, which were totally different in neoclassical economics, but he failed in trying to incorporate entrepreneur behaviors into the 40  Schultz, Theodore W. Origins of Increasing Returns [M]. Beijing: Peking University Press, 2001.001. 41  Ibid. 42  Hebert, R. F. & Link, A. N. The Entrepreneur: Main Stream Views and Radical Critique [M], New York: Praeger Publishing Company, 1988: 111. 43  Ibid.

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

31

neoclassical framework.44 Therefore, in order to construct the theoretical framework for transforming development mode in the system of neoclassical economics, new content must be included to enable it to analyze not only dynamic problems but also accumulated problems in economic activities. This will mean a revolution in economics. Under the influence of neoclassical economics, the extensive literature on agricultural economy in China doesn’t take transformation of economic development mode as an independent variable, and thus the status of economic development mode has been ignored in these writings. The research findings of Yifu Lin are the classic literature that studies early agricultural development in China. Through a series of empirical analysis, he concludes that institutional innovations and technological progress are the sources of China’s agricultural economic growth.45 Lin’s research also shows that in the process of agricultural economic growth in China from 1965 to 1987, the proportion of the increase in the input of modern agriculture accounts for 40.8% of the total (of which two-thirds is chemical fertilizer), and another 43.06% of the growth is caused by institutional changes. The impact of technological progress and price changes is very small, less than 2%. In his analysis of institutional effects, although Yifu Lin has compared the economic organization of collective farming and family farms, he states that these two approaches are farmers’ self-selection under the maximization of interests, thus neglecting the choice of agricultural growth (development) mode. Using a typical Dennison-Solow growth approach, studies done by McMillan have shown that two-thirds of agricultural growth after 1979 stems from agricultural structural reform and about 22% is from price-stimulating effects.46 Jikun Huang also confirms this point in his research on rice production. From 1978 to 1984, the household contract responsibility system contributed 34% to the growth of rice production.47 With the further development of reform, farmers’ employment channels are expanding. The ripple effect is that the opportunity cost of labor and resources for agricultural production is gradually 44  Hayek, F.  A. Individualism and Economic Order [M]. Beijing: SDX Joint Publishing Company, 2003. 45  Lin, Yifu. On System, Technology and Agricultural Development in China Again [M]. Beijing: Peking University Press, 2000. 46  McMillan, John; Whalley, J., & Zhu, L. The Impact of China’s Economic Reform on Agricultural Productivity Growth [J], Journal of Political Economy, 1989, 97, pp. 781–807. 47  Huang, Jikun et al. Agricultural Sci & tec Revolution: Past and Future [J]. Journal of Agrotechnical Economics, 1998 (3).

32 

W. CHEN

on the rise, and the institutional incentive of the family contract responsibility system for agricultural growth is declining. Based on the data from 1978 to 1994 in Guangdong, Simei Wen studies the sources of agricultural growth in that province. He believes that during this period, the growth of factor input is the main driving force of agricultural growth in Guangdong, and the role of modern input factors is more obvious, with a rising trend. In the growth of agricultural productivity, the contribution of institutional innovations is more than two-thirds, and the other third is the contribution of technological progress. Since the mid-1980s, the role of institutional innovations has not been as prominent as that in the initial stage of reform, but the contribution of technological progress has become increasingly prominent.48 Xiangyang Chang and Huafeng Yao believe that there are differences in the adoption of agricultural technologies in different regions of China. Among them, factor endowments have an important influence on technological choices, and the influence of agro-technology choices on agricultural production is reflected in the increase of mechanical input, the amount of labor input, and fertilizer input in per unit cultivated area.49 Using fixed observation panel data on 11 villages in Jiangxi Province over 5 consecutive years, Bo Zhou and Leng Yu establish a fixed effects model to study the static and dynamic effects and the impact path of agro-technology application on farmers’ household income. The results of their study show that after controlling the characteristics of production and management, social economy, and natural factors, the application of agro-technology has a significant positive effect on the total household income of farmers.50 Regarding grassroots agro-technology-extension workers from 42 rice-technology demonstration counties in 14 provinces as the research objects, Hongfang Shen et al. analyze the current situation of evaluation incentive mechanisms for grassroots agro-technology ­extension and its impact on the promotion of staff behavior and performance. The results show that “rice-technology demonstration counties” have gradually established a mechanism for assessing and encouraging

48  Wen, Simei. Research on the Roots of Agricultural Economic Growth in Guangdong in the Reform [J], Chinese Rural Economy, 1996 (7). 49   Chang, Xiangyang & Yao, Huafeng. An Empirical Analysis of Factors Affecting Agricultural Technology Choice [J], Chinese Rural Economy, 2005 (10). 50  Zhou, Bo & Yu, Leng. The Impact of Agricultural Technology Application on Farmers’ Income: Taking Jiangxi Province as an Example [J]. Chinese Rural Economy, 2011 (1).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

33

agro-­technology-­extension workers, which has played a positive role in the behavior and performance of these workers.51 In earlier studies, scholars such as Simei Wen noted that the stability of the system and the continuity of technological progress play an important role in agricultural development, but they do not consider the transformation of agricultural development mode as an independent variable to analyze. In later studies, through the research on agricultural modernization in Shunde District in Guangdong Province and the analysis paradigm of institutional economics, Simei Wen has integrated land circulation, industrial structure transformation, market cultivation and the agro-­ technological innovation system with technology promotion and the diffusion system, including the transformation of agricultural development mode in the analytical framework of neoclassical economics.52 Among the literature we have found so far, this is the earliest theoretical innovation that includes the transformation of agricultural development mode in the analytical framework of modern economics. Based on the theory of comparative advantages, Fang Cai considers China to be a country having a rich labor force but little land. However, grain production has the characteristic of using less labor but more land. Starting in the late 1970s, rural reform has mobilized farmers’ labor and made the phenomenon of labor surplus and shortage of farmland increasingly prominent. At the same time, the comparative advantage of agricultural production subsequently dropped rapidly. Under the conditions of market forces allocating resources, agricultural resources will be allocated from grain production to production of cash crops, thus leading to the evolution of agricultural industrial structure.53 In the past 30 years, China’s economy has been undergoing continuous development and change. Therefore, the best analytical tool for studying China’s economic problems is not the equilibrium analysis but the dynamic analysis. Reviewing contemporary economic literature on China’s problems gives us more insight into the economics of transforming development mode.

51  Shen, Hongfang et al. The Evaluation and Incentive System for Grassroots Agrotechnique Popularization and Its Relation to Popularization and Popularization Performance [J]. China Rural Survey, 201 (1). 52   Wen, Simei et  al. Path Choices of Traditional Agricultural Transformation: Enlightenments from Shunde, Guangdong [J], South China Rural Area, 2002 (6). 53  Cai, Fang. Rural Reforms and Agricultural Growth in China [M], Shanghai: SDX Joint Publishing Company, Shanghai People’s Publishing House, 1994.

34 

W. CHEN

3   The Farmland System and the Transformation of Agricultural Development Mode Based on the Perspective of New Institutional Economics Taking organizational issues as the object of research, new institutional economics tries to broaden the range of application of neoclassical theory through the impact of property rights structure and transaction costs on economic behaviors.54 Property rights refers to the accepted behavioral relationships between people, which are caused by the existence of things and related to the use of things. Property rights arrangements stipulate the norms of behavior related to things that people must obey in their interactions with others, and those who violate such norms must pay the price. Property rights are determined and guaranteed by certain forms of governance structure or order, and the guarantee of order may be “entirely endogenous”, or may be enforced by “expectations of specific external outcomes”.55 The emergence and development of property rights has always been a problem in economics. Between the determinism of exogenous authorities and “spontaneous” order theory, neo-institutionalism favors the latter.56 However, the theory based on philosophical explication has no analyzability of economics; Coase’s contribution is to introduce transaction costs into the neoclassical framework, which brings the analyzability of economics to property choice.57 On this basis, Wuchang Zhang proposes the contractual analysis framework of property rights.58 The contractual nature of property rights leaves room for negotiation during the formation of property rights, which lays the foundation for the game of property rights and becomes the pioneer of the evolution and development of property rights.59 Barzel introduces transaction costs directly into 54  Furubotn, Eirik G.  Rudolf Richter (1991). Institutions and Economic Theory: The Contribution of the New Institutional Economics [M], Shanghai: Shanghai University of Finance and Economics Press. 55  Weber, M. 1978, Economy and Society (2 Vols.) [M], Berkeley: The University of California Press. 56  Hayek, F. A. 1973, Law, Legislation and Liberty: Rules and Order (I) [M], Chicago: The University of Chicago Press. 57  Coase, R. The Problem of Social Cost [J], The Journal of Law and Economics, 1960, 3: pp. 1–44. 58  Zhang, Wuchang. The Theory of Share Tenancy, Beijing: The Commercial Press, 2000. 59  Umbeck, J. 1977, The California Gold Rush: A Study of Emerging Property Rights [J], Explorations in Economic History 14, No. 2: pp. 197–206.

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

35

the structural analysis and the development process of property rights. Based on balancing cost and profit, development of property rights is the outcome of people’s choice. If the benefit of demarcation of property rights is larger than the cost, people will be encouraged to define it more clearly. In economic systems, the method of property rights affecting resource allocation is trading. In Chinese history, especially during the Ming and Qing Dynasties, the development of land ownership and the diversity of its transactional forms made land circulation more active, and thus the combination of production factors and resource allocation was promoted.60 Since the reform and opening-up, a large number of fruitful explorations have been made on influencing factors and mechanisms of Chinese land circulation, not only at the theoretical level but at the policy-making and practical level as well. In regard to the slow development of land circulation,61 some researchers consider it as the institutional defect of policy arrangement of farmland property rights, which is characterized by the unclear property rights of farmland and imperfect rural social security system, and hinders farmland circulation and the development of farmland market. There are still many scholars trying to analyze the transfer behavior of farmland and its constraints more specifically,62 which provides many valuable opinions for understanding the motivation and behavior of land circulation. In summing up the evolution of world agriculture scale operation, Xiyuan Liao et al. analyze farmland ownership with Chinese characteristics, function bearing, and ultra-small scale. In addition, they propose that agricultural scale management with Chinese characteristics would start from invariability and take a gradual path, which would feature the transfer of production chain with maximized labor wage, the transfer of management rights with maximized land compensation, and the transfer 60  You, Denggao. Transaction of Property Rights of Land and Resources Allocation: 1650–1950 [J], Economic Research Journal, 2009 (2). 61  Qian, Zhonghao. The Incomplete Property Rights of Rural Land Contract Management and the Dilemma of Market Circulation: Theory and Policy Analysis [J]. Management World, 2002 (6); Ye, Jianping. Research on China’s Rural Land Use Right in 2008: Results of Investigation in 17 Provinces and Policy Suggestions [J]. Management World, 2010(1). 62  Zhan, Heping. Empirical Prospect of the Rural Land Transfer in China [J], Journal of Anhui Agricultural Sciences, 2007 (24); Du, Peihua & Ou, Minghao. A Demonstrative Study of Factors Influencing Farmers’ Behavior in Farmland Transfer—With Jiangsu Province as an Example [J], Scientific and Technological Management of Land and Resources, 2008 (1); Zhao, Qizhuo & Tang, Zhong. An Empirical Study on the Current Situation of Farmland Transfer and the Choice of Transfer Contracts [J], China Rural Survey, 2008 (3).

36 

W. CHEN

of contracting rights of the land property system reform.63 In this way, the evolution of property rights is linked with the combination of production factors, and thus the development track of agricultural scale management in China is also explained. The Chinese property rights system is divided from single ownership into the combination of ownership, contracting rights, and management rights. The process of property subdivision is that of reallocating property rights through power transactions, which will allocate or transfer the property rights to the entities that can use them most effectively.64 This is the reason why property subdivisions can enhance the ability to enforce property rights. An effective system of land property rights can reduce the cost of land transactions, thereby increasing the efficiency of land circulation and eventually promoting the transformation of the mode of agricultural development. Examining a series of theoretical and empirical research on farmland systems, property rights, and large-scale farming, most advocate that Chinese agriculture should adopt industrialization and professionalization. Yifu Lin, Roy Prosterman, Fengqin Liu, and other scholars prefer land-conserving agricultural development depending on the advanced biochemical technology.65 They believe that the constraint of resource endowment (less land and large population) and investment in agricultural production don’t deserve a dedicated investment. The efficiency of tillage in small plots is determined by the condition of the parergon of agricultural labor and tenantable agricultural machinery. Some scholars advocate that Chinese agriculture should follow the path of large scale and industrialization.66 The typical model is the mechanized farm mode of large-area 63  Liao, Xiyuan, Shen, Hongfang & Wang, Zhigang. Three-Step Strategy for Large-Scale Agricultural Operation with Chinese Characteristics [J], Issues in Agricultural Economy, 2011 (12). 64  Zhang, Shuguang. Land Circulation and Agricultural Modernization [J]. Management World, 2010 (7). 65  Lin, Yifu. On System, Technology and Agricultural Development in China Again [M]. Beijing: Peking University Press, 2000; Prosterman, Roy, Timothy, Hanstad, & Li, Ping. Large-Scale Farming in China: Is the Policy Proper? [J]. China Rural Survey, 1996 (6); Liu, Fengqin. A Study of the Conditions of the Scale Operation of Farmland, and of the Effect Thereof: Taking the Northeastern Countryside as a Case [J]. Management World, 2006 (9). 66  Han, Jun. Land Policy: From a Small-Scale Equalization System to a Moderate Scale Operation [J]. The World of Survey and Research, 1998 (5); Zhang, Zhonggen & Huang Zuhui. Scale Management: An Important Way to Improve the Comparative Benefits of Agriculture [J]. Journal of Agrotechnical Economics, 1997 (5); Zhang, Xinguang. The Rural Reform Taking Farmland System, Distribution System and Management System as a Whole [M], China Agriculture Press, 2006.

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

37

operation, because large-scale farms can do justice to the efficiency of agricultural production factors. Scholars take different stances on agricultural performance brought about by the fragmentation of land in China since the reform and opening-up. According to the empirical research based on the econometric model of land fragmentation and economies of scale, Guanghua Wan and Enjiang Cheng believe that land fragmentation would not only reduce the scale economies effect of agricultural production, but also seriously affect crop yield. Land fragmentation leads to the small-scale operation of rural households and hinders the popularization and application of advanced agricultural mechanical equipment and agricultural technologies, thus preventing agro-technology and equipment from being updated, and thus they remain in a backward state.67 Therefore, accelerating the transfer of land, increasing the large-scale operation of land and changing the mode of production of agricultural crops (especially grain) in China have become the mainstream view of both theorists and practitioners. “Accelerating rural land circulation and developing farming operations on an appropriately large scale” became the focus of work for the party and government departments at all levels after the Third Plenary Session of the 17th CPC Central Committee. So, how does land fragmentation come into being in China? Rural property rights, which assign farmland to farmers in terms of their identity, are the root of land fragmentation after the household contract system is implemented.68 Despite the shortcomings of land fragmentation, it also has its merits. First, against the backdrop of a serious shortage of farmland per capita and a large surplus of rural labor, the fragmentation of farmland forces farmers to diversify their crop production and optimize the allocation of rural labor so as to maintain agricultural production and increase their net income.69 The fragmentation of farmland is in direct proportion to farmers’ total income and is conducive to narrowing the inequality of their income.70 67  Wan, Guanghua & Cheng Enjiang. Economies of Scale, Fragmentation of Land and Grain Production in China [J]. China Rural Survey, 1996 (3). 68  Yao, Yang. Land, System and Agricultural Development [M]. Beijing: Peking University Press, 2004. 69  Li, Gongkui & Zhong, Puning. Farmland Fragmentation, Labor Employment and Farmers’ Income: An Empirical Study of Economically Underdeveloped Areas in Jiangsu Province [J], Chinese Rural Economy, 2006 (4). 70  Xu, Qing et al. Rural Land System, Land Fragmentation and Farmer’s Income Inequality [J]. Economic Research Journal, 2008 (2).

38 

W. CHEN

Second, the small-scale operation determined by land fragmentation can effectively avoid or share the risk of agricultural production and agricultural product prices. Under the premise of incomplete financial, insurance, and market systems, the benefits from scale operation or time saving may not be able to offset the loss of a certain plot caused by natural disasters, such as pests, droughts, or floods.71 Finally, the basic guarantee function of land to farmers has been validated by some economists.72 The irreplaceability of farmland and the guarantee of employment ensure that the transaction costs far exceed the scale economic benefit of farmland. Therefore, it is difficult to merge plots through market behaviors.73 It can be argued that scale land management is unable to increase farmers’ income. If we expect this, the rural labor force must be given the freedom to make full trade-offs between the agricultural sector and non-­agricultural sector when they are employed for its own comparative advantages.74 The scale boundary of the planting industry is farmers’ rational choice based on the maximization of benefits under the existing conditions. Some scholars believe that the widespread promotion of large-scale operations in China would be of little help in increasing agricultural production, and might instead bring about a series of extremely serious crises and obvious disadvantages to agriculture.75 Still others argue that farmers’ continued expansion of the scale would lead to the decline of crop yields and the multiple cropping index on the one hand, and the increase of labor productivity and per capita income on the other.76 The scale management of farmers would then lead to a dilemma of resource utilization and efficiency. In addition, many scholars believe that the system of land property rights based on community membership would not only impede the optimal allocation of resources, resulting in land fragmentation and inefficient agricultural labor, but also reverse incentives for farmers’ environmental behavior. Due to vague land property rights and the instability of land  Ibid.  Wen, Tiejun. Farmers’ Social Security and Land System Reform [J]. Study Monthly, 2006 (19). 73  Wang, Xingwen & Zhong, Funing. Land Fragmentation and Farmland Circulation Market [J]. China Rural Survey, 2008 (4). 74  Peng, Daiyan & Wu, Yangjie. An Empirical Test on the Relationship between Farmland Concentration and Farmers’ Income Increase [J], Chinese Rural Economy, 2009 (4). 75  Prosterman, Roy, Timothy, Hanstad., & Li, Ping, Large-Scale Farming in China: Is the Policy Proper? [J]. China Rural Survey, 1996 (6). 76  Wei, Xin et al. Empirical Analysis on the Scale Management of Farmers’ Land in Zhejiang Province [J]. Chinese Rural Economy, 2003 (10). 71 72

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

39

rights, it is difficult for farmers to be aware of long-term land ownership and use. They only seek short-term increases in production rather than long-term fertility, let alone investing in the long-term project. This gives rise to short-term environmental and ecological behavior of farmers and a deteriorating environmental and resource situation in China. For a long time, to raise the output of farm products, a series of positive policies in terms of price, investment, and distribution have been made and have largely guaranteed the effective supply of farm products in China. They have also brought about degradation of agricultural resources and the decrease of environmental carrying capacity.77 To establish a land-­ conserving agricultural development mechanism, it is necessary to establish a free market for agricultural production, so that resources can be optimally configured. The land-conserving agriculture management model constructs a farmland management pattern characterized by “talent-­capital integration” and “quartet participation”. Talent—capital integration is bidding management based on the quality of workforce. In this way the trend of increasing the number of laborers under the current rural land system can be changed, the contradiction between farmland and labor control can be eased, farmers will be guided to control family population, human capital investment will increase, and the transformation from labor force to human capital will also be encouraged. All of this can thereby provide more human resources for new industrialization and urbanization. Farming will be characterized by concentration and scale, which strives for intensive protection of the agricultural eco-environment and aims at modern agriculture with special features. The “quartet participation” model involves farmers, rural collectives, enterprises, and relevant economic organizations and intermediaries.78 Yuxiang Liu and Wensheng Chen demonstrate the relationship between land saving and investment through the empirical case of Hunan. Land production efficiency increases 8–10 times owing to scale-intensive management of land, but it requires high input, which is also called capital’s replacement of land.79 The key to

77  Zhou, Jianhua & Wu, Dongfeng. Preconditions and Resistance Factors of Bridging of Two-oriented Agricultural Production Systems [J]. Seeker, 2011 (1). 78  Xiao, Xiangxiong & Liu, Hao. Research on the Innovative Mode of Farmland Operating in Two-oriented Society [J]. China Development, 2010 (4). 79  Liu, Zuoxiang & Chen, Wensheng, A Review of Strengthening the Basic Position of Agriculture and Ensuring National Food Security Strategy [J]. Yinshan Academic Journal, 2010 (5).

40 

W. CHEN

building land-conserving agriculture is to find a balance among capital, land, labor, and other factors. Rural land circulation and scale operation are actually two aspects of one issue. Under the existing basic rural management system, only rural land circulation can help achieve relative concentration to expand moderately agricultural operation scale. Therefore, rural land circulation and scale management are the foundation and premise for China to realize modern transformation of agriculture.80 For many scholars, to cope with problems such as decentralized management of farmland and low economy of scale, it is inevitable that they will cultivate rural land markets and promote rural land circulation.81 These techniques aim to develop farming operations on an appropriately large scale, promote the adoption of advanced technologies, optimize the allocation of rural land resources, and raise agricultural labor productivity. However, many surveys from rural communities indicate that, even though urbanization has continuously shifted rural labor forces out of rural areas and agriculture, the government has also continuously encouraged and guided them by issuing relevant policies and a good foundation for farmland circulation and scale management. Generally there is still no fundamental change to decentralized management of rural land and low economy of scale.82,83 In fact, for rural land in China now, whether it has economies of scale or it should be circulated, both theoretically and practically, many opinions exist. Some scholars believe that, through market circulation, fragmented farmland would be in the hands of large family farming businesses, and thus the large-scale management would not only promote farmers’ incomes, but

80  Zhang, Shuguang. Land Circulation and Agricultural Modernization [J]. Management World, 2010 (7). 81  Xu, Qing et al. Rural Land System, Land Fragmentation and Farmers’ Income Inequality [J]. Economic Research Journal, 2008 (2). 82  Yang, Xuecheng et  al. Reflections on Rural Land Relations: Three Rural Household Surveys from 1995 to 2008 [J]. Management World, 2008 (7); Li, Ting et al., The Basic Characteristics and Factors of Current Rural land Circulation [J]. Chinese Rural Economy, 2009 (10); Ye, Jianping. Research on China’s Rural Land Use Right in 2008: Results of Investigation in 17 Provinces and Policy Suggestions [J]. Management World, 2010(1); Luo, Biliang & Li, Shangpu. Transaction Costs of Rural land Circulation: Based on Williamson’s Paradigm and Evidences from Guangdong Province [J]. Issues in Agricultural Economy, 2010 (I2). 83  Bao, Zongshun et  al. Regional Differences and Factors of Rural Land Circulation: Taking Jiangsu Province as an Example [J]. Chinese Rural Economy, 2009 (4).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

41

also improve the efficiency of rural land use.84 Therefore, Pareto improvements of farmland resource allocation efficiency could be achieved through free trade in farmland property rights, especially the management rights of contracted land,85 and necessary government management. Only by promoting farmland circulation and scale operation can the social division of labor and specialized production be smoothly expanded to form a series of specialized production bases. With the help of these bases, China is able to increase investment in sci-tech, realize standardized and ecological production, and accelerate the marketization of agriculture.86 With the continuous expansion of farmland operation scale, farmers’ demand for advanced agro-technology has been increasing. The larger the scale of family operation, the higher the demand for agro-­technical information.87 There is a mass tipping point for the adoption of agro-technology. If the scale of operation is too small, it will be difficult for farmers to adopt new technologies in terms of economic efficiency and rationality, and they might not even be able to adopt “mass technologies” alone.88 All in all, the current household contract system has severe shortcomings in reality. First, the household contract system is relatively efficient in the context of a closed small-scale farmer economy.89 Once there are labor flow and changes, there will be natural defects. Due to the collective ownership of rural villagers, every legitimate member within the village collective is entitled to equal ownership of rural land, thus giving farmers the equal right to farmland contracting because of their natural identity.90 84  Yao, Yang. China’s Rural land System: An Analytical Framework [J]. Social Sciences in China, 2000 (2). 85  Qian, Zhonghao. The Incomplete Property Rights of Rural Land Contract Management and the Dilemma of Market Circulation: Theory and Policy Analysis [J]. Management World, 2002 (6). 86  Zhang, Shuguang. Land Circulation and Agricultural Modernization [J]. Management World, 2010 (7). 87  Zhang, Lei et  al. The Channels and Demands Analysis for Farmers’ Agricultural Technology Information Acquisition: Based on the Survey of 411 Counties in the 13 Major Grain-producing Provinces [J]. Issues in Agricultural Economy, 2009 (11). 88   Chen, Huiying & Zheng, Guoqiang. Research on the Influencing Factors and Countermeasures of Chinese Farmers’ Sci & tec Level [J]. Issues in Agricultural Economy, 2001 (3). 89  Lin, Yifu. On System, Technology and Agricultural Development in China Again [M]. Beijing: Peking University Press, 2000. 90  Yao, Yang. China’s Rural land System: An Analytical Framework [J]. Social Sciences in China, 2000 (2).

42 

W. CHEN

Therefore, the allocation of farmland varies with changes in rural population, and instability and decentralization are the inevitable institutional defects. Second, with rapid urbanization and continuous development of non-agricultural industries, farmers’ part-time and sideline occupations are common in rural areas.91 Farmland abandonment, fragmentation of land, and management of small-scale farms cause a huge waste of land resources in farmland allocation and affect national grain security and food safety.92 The key point is that, in the process of labor flow and farmland circulation, the effective “exit mechanism” and entry mechanism of farmland are not established.93 In the course of the organizational evolution of agriculture, land is an important regulatory variable. Therefore, land ownership will be allocated for its most effective use in order to achieve optimal allocation of land resources, which is called the Coase Theorem. Scholars have discussed different forms of agricultural organizations and the efficiency of various agricultural production factors.94 They have studied the mode of company plus farmer household, rental return package mode, land contract system, agricultural professional associations, brokers and other intermediary organizations, and land management of rural cooperatives. Some domestic empirical studies verify the hypothesis of Yifu Lin and other scholars that agricultural production is moving toward being land-conserving, labor-intensive, and capital-intensive.95 91  Jin, Maoxia & Zhao, Xiaoyan. An Analysis and Reflection on the Structural Change of Japanese Agricultural Labor Force [J]. Contemporary Economy of Japan, 1997 (4); Huang, Yunpeng. Agricultural Management System and Specialized Division of Labor: On the Dispute between Family Management and Scale Economy [J]. Issues in Agricultural Economy, 2003 (6); Xiang, Guocheng & Han, Shaofeng. Division of Labor and Agricultural Organizational Evolution: An Analysis Based on the Model of Indirect Pricing Theory [J]. China Economic Quarterly, 2007 (2). 92  Wu, Juan. Studying on the Problems of Grain Security Protect in China [J]. Issues in Agricultural Economy, 2012 (3). 93  Zhang, Shuguang & Liu, Shouying. A Case Study of China’s Institutional Change [A]. In Biliang Luo (ed.) The Instability of Contract and Contract Management [C], Beijing: Chinese Financial & Economic Publishing House, Vol. 8. 94  Zhang, Xiaoshan & Yuan, Peng. Linking Agriculture and Market -Exploration of Chinese Farmer Intermediary Organization [M].Beijing: China Social Sciences Press, 2002; Yan, Ruizhen & Cheng, Shulan. Economic Globalization and China’s Food Issues [M]. Beijing: China Renmin University Press, 2001; Yao, Yang, China’s Rural land System: An Analytical Framework [J], Social Sciences in China, 2000 (2). 95  Liu, Fengqin. A Study of the Conditions of the Scale Operation of Farmland, and of the Effect Thereof: Taking the Northeastern Countryside as a Case [J]. Management World, 2006 (9).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

43

Transformation of agricultural development mode must be consistent with the requirements of intensive operation, and take the professional, large-scale, integrated, commercialized, and modernized agricultural development path. On the basis of family management, the main form is appropriately large-scale households, and the main direction of development is precision agriculture.96 Precision agriculture is based on information and knowledge to finely manage complex agricultural systems. Its most basic technical lines and principles are applicable to agricultural production of any form and size. However, the development of precision agriculture requires that the scale of production be enlarged as much as possible. The advantage of precision agriculture is integrating land conservation, environmental protection, resource recycling, and agro-sci-tech into a single production organization, and can become an organizational form of the transformation of agricultural development in the construction of a “resource and ecologically sound society”.

4   “Resource and Ecologically Sound Society” and the Transformation of Agricultural Development Mode Based on the Review of Development Economics Is agriculture the source of economic development of a country? Is agriculture efficient? What is the status of agriculture in a modern transformation process of a country? What role does agriculture play? Investigation of these issues is an important component of development economics. Neoclassical economics believes that economic growth results from the outward expansion of the production possibility boundary. The interaction between producers and consumers is the performance of the market mechanism in resource allocation. It determines which point on the boundary can best meet the requirements of social needs.97 The results of production will only meet the needs of human society, and will not bring “negative products”98 that are detrimental to human beings. If an economy changes its outcome, it must change its production pattern accordingly so 96  Zeng, Fusheng. Developing Modern Agriculture and Transforming the Mode of Economic and Economic Development [J]. Social Sciences in Hunan, 2010 (3). 97  Liu, Yuxiang. Transformation of Agricultural Development Mode: Foreign Theories and Methods [J], Guizhou Social Sciences, 2012 (8). 98  Zhu, Xiqing. Knowledge Notes [M], Beijing: CITIC Publishing House, 2011.

44 

W. CHEN

that the probability curve moves faster on the industrial axis than on the agricultural axis.99 Based on the accepted methodology of neoclassical economics, Lewis, Ranis, and Fei propose the theory of agricultural development100 under the dual economic conditions, and consider that, in the urban—rural dual economic structure, the continued expansion of the non-agricultural sector with a high wage rate is the cause of economic development. The redistribution of labor between the agricultural and non-agricultural sectors is the method of economic development, and economic development is completed by the emergence of the “Lewis Turning Point”. After entering the “Lewis Turning Point”, agricultural labor forces will not only become a rare production factor, like the non-­ agricultural labor force, but also will change from natural employment to market allocation, and wages are changed from institutional arrangements to marginal productivity equations.101 Here, the labor force assumed by the “Liu-Fei-Ranis model” is homogeneous, and labor flow employment has no valuable characteristics. If these assumptions are not used as a premise for model construction, then the explanatory power of agricultural development mode will become questionable. In the 1960s, the importance of agriculture in industrialization was gradually recognized by economists, and many scholars began to correct the Lewis model. In response to the shortcomings of Lewis’s dual economic model, Jorgensen put forward the hypothesis that the marginal labor productivity of the agricultural sector is zero, and that both agricultural wages and industrial wages are fixed, and established “Jorgensen model” thereon. He believes that population growth depends on food supply. If the food supply is sufficient, the population growth rate will reach a physiological maximum. Once grain supply growth rate exceeds this maximum value, agricultural surplus will occur. As agricultural surplus continues to increase, agricultural labor force begins to shift to the industrial sector, and industry develops accordingly. The greater the agricultural

99  Lynn, Stuart R. Development Economics [M], Shanghai: Gezhi Publishing House, Shanghai Sanlian Bookstore, Shanghai People’s Publishing House, 2009. 100  Lewis. Economic Development with Unlimited Supply of Labor [M], The Manchester School. May, 1954; Fei, C H and Ranis, G A Theory of Economic Development [J], American Economic Review, September, 1961. 101  Guo, Jianxiong & Liu, Ye. Selective Migration and Deepening of Human Capital in Rural Labor [J] Journal of Humanities, 2008 (4).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

45

surplus, the greater the scale of labor flow will be.102 It is obvious that the “Jorgensen model” is based on the assumption that population growth is determined by economic growth, which undoubtedly internalizes the demographic factor, because there is no surplus labor. Once the economy grows to the same point that population growth is allowed to reach, the surplus of agriculture will emerge. That is to say, the demand for food in modern society is limited, and the demand for industrial products is limitless. Once the per capita grain output exceeds the level required for population growth to reach the upper limit, agricultural labor force will shift to the industrial sector and accelerate the process of industrial development. In the Jorgensen model, the flow of labor resources between agricultural and industrial sectors is the result of technological progress and economic growth, and is consequently more realistic. However, it does not discuss how capital will replace labor in agriculture. American economists Johnston and Mailer published a paper entitled “The Role of Agriculture in Economic Development” in 1961, which discussed the height that the economic community could reach then. In the paper they use agriculture as a driving force behind economic growth and emphasize the importance of agriculture. The article attributes the role of agriculture to five contributions: labor, capital, foreign exchange, food, and market.103 Views in this article have influenced the understanding and policy-making of agriculture in the process of industrialization in developing countries (including China) for many years. The purpose of agricultural development is to promote the process of industrialization. Nonetheless, these documents have laid the theoretical foundation for development economics focusing on the role of agriculture in development, and thoroughly establishing the notion that agricultural development should be seen as an engine for industrialization, economic restructuring, and total growth.104 However, this view is denied from the late 1970s to early 1980s. Over the next 20 years (1985–2005), agriculture was neglected by international and domestic policies in economic development. In terms of public investment, agriculture is considered to be a sunset industry lacking competitiveness and unworthy of investment.  Jorgenson, Dale W. 1961. The Development of a Dual Economy [J], The Economic Journal, Vol 71, No 282, pp. 309–334. 103  Johnston, Bruce F. & Mellor, John. The Role of Agriculture in Economic Development [J], American Economic Review 51 (4), 1961. 104  Alain de Janvry. Agriculture for Development: Toward a New Paradigm [J] Annual Review of Resource Economics, Vol 1, No 1, pp. 15–35, 2009. 102

46 

W. CHEN

Agriculture is no longer considered to be an effective way to achieve industrialization.105 A series of international crises took place around 2005, and one major reason was the inertia in recognizing the importance of agriculture as a development tool and in government support for institutional reform by providing public goods. A huge price for neglecting agriculture has been paid.106 As a reflection on neglecting agricultural development, the World Bank has proposed a new model for promoting development in agriculture.107 This is the latest theoretical development of economics under the new historical conditions, a summary of losses and gains in global economic development in the past 200 years, especially in the past 50 years. The theorization has had a tremendous impact on the transformation of global economic development, especially the mode of agricultural development. The change of resource type and the diversification of agricultural production in the agricultural production process objectively require the advancement of agro-technology and make contributions to the transformation of agricultural development mode. Cochrane and Johnson’s “diffusion model of agricultural development” asserts that the diffusion and application of agro-technology between sectors is the result of price induction. The diffusion of agro-technology includes first adoption, follow-up application, and forced adoption. The constant innovations and applications of any technology are cyclical and endless. In Johnson’s “Agricultural Fixed Assets Theory”, a high proportion of agricultural fixed asset investment is an important internal mechanism to promote technological progress. This theory divides the process of farmers adopting new technologies into five stages, “discovery-discussion-evaluation-experiment-adoption”, and finds that the contribution of technological progress to agricultural growth is mainly outside the agricultural sector. For agricultural growth, technological progress is the main source of growth, and transforming agricultural development is an exogenous variable.108 Schultz’s “high-­ yield input model” reintroduces the decisive factors of economic growth 105  Rodirik. Policy Uncertainty and Private Investment in Developing Countries. Working Paper No 2999, 1989. 106  Alain de Janvry. Promoting Development with Agriculture: New Models and Options for Success [J], Issues in Agricultural Economy, 2009, (12). 107  World Bank Promoting Development with Agriculture (World Development Report 2008) [M], Hu, Guangyu & Zhao, Bing (Trans.), Beijing: Tsinghua University Press, 2008. 108  Zhang, Yuping & Han, Yijun. China’s Barley Production and Consumption and Supply and Demand Situation [J] Agricultural Outlook, 2007 (6).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

47

into traditional agriculture, arguing that agricultural growth can rely on increased agricultural inputs, value-added subsidies for production materials and agricultural product prices, low-interest loans, and education and technology popularization. Among these, farmers’ differences in ability are the most important factors, thereby emphasizing the importance of human capital in the transformation of agricultural development mode.109 The “inducing technological innovation and resource substitution model” proposed by Hayami Yujiro and Ratan regards agricultural technological progress as being caused by changes in relevant factor prices. It is believed that in countries with high population density and rapid economic growth, land resources become scarcer than labor. Agro-technological innovations are geared toward replacing land. Advances in biotechnology play an important role in improving land productivity and land utilization. In a country of low population density with an expanding non-agricultural sector, labor is becoming scarcer than land resources, and agro-technological innovations are geared toward replacing land as well. And the ­development of mechanization results in an ever-expanding per capita farmland. Therefore, features of the specific resource stock determine resource substitutions based on different resource endowments and technologies adopted for different levels of agricultural development to realize the transformation of agricultural growth mode. For example, in countries or districts of higher per capita farmland resources, agro-technological innovations tend to produce new technologies of labor substitution (such as mechanization in the United States), and in places where the per capita farmland resources are insufficient, agro-technological innovations tend to produce new technologies for land replacement.110 According to the nature of technological progress, Mellor divides into three stages the agricultural development processes in his “Agricultural Development Stage and Resource Complementary Model”: technical stagnation, labor-­ intensive technological progress, and capital-intensive technological progress. It is believed that the complementarity of resource input requires proportional increase of all the factors conducive to agricultural production growth. If only one factor is increased and other complementary 109  Schultz, Theodore W. The Source of Increasing Returns [M], Yao, Zhiyong, Liu, Qunyi (Trans.) Beijing: Peking University Press, 2001. 110  Yujiro, Hyami & Uttan, Veron W and Southworth, Herman Mc – Do – Well Agricultural Growth in Japan, Taiwan, Korea and the Philippines [M] Honolulu: The University Press of Hawaii, 1979.

48 

W. CHEN

production factors are not increased correspondingly, the marginal productivity of the added factor input will decrease, and the increase of total farm products will be very limited.111 This theory implies that, to change agricultural development mode, we must rely on the modern development of the non-agricultural sector. In his “Structural Transformation Growth Model”, Chenery believes that the impact of structural transformation on agricultural development is mainly reflected in the outflow of agricultural resources leading to a decline in agricultural share and resource replacement improving agricultural quality and agricultural modernization. Therefore, the combination of productivity growth and increased agricultural input leads to the growth of farm products; the transformation of economic structure leads to a relative share decline and an absolute decline in the late stage of structural transformation in the national economy of agriculture; and the decline of the relative amount, even the absolute, of labor supply for the agricultural sector leads to an increase in capital investment, technology investment, and finally productivity.112 With the practice of this new development model of “promoting development by agriculture”, the agricultural development mode will be transformed in the following respects: the availability of resources, the source of technological innovations, the mechanism of technological progress and diffusion, the governance model, the international community commitment of public investment in agricultural development, and the way in which agriculture is organized.113 This will promote the efficiency of agricultural economic development. In addition, the application of emerging technologies such as biotechnology and information technology in agriculture has changed the traditional form of agricultural development and constitutes the main focus of new agricultural development modes.114 Research on China’s agricultural development mode began in the mid-­1990s and has been carried out under the name of “agricultural 111  Mellor, John. Agriculture on the Road to Industrialization, In Carl Eicher and John Staatz (eds), International Agricultural development [M], Baltimore, Maryland: Johns Hopkins University Press, 1998. 112  Chenery. A Structuralist Approach to Development Policy [J], 1975, American Economic Review. 113  Alain de Janvry. Promoting Development with Agriculture: New Models and Options for Success [J], Issues in Agricultural Economy, 2009 (12). 114  Padi, Philip G. Food Future: International Biotechnology Markets and Policies [M], Wen, Simei & Sun, Liangyuan (Trans.), China Agricultural Press, 2002; Gasford, James D. Biotechnology Economics [M], Shanghai Sanlian Bookstore, 2003.

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

49

growth mode”. However, development economics mainly focuses on labor mobility, land circulation, agricultural mechanization, and agricultural-­intensive management during China’s agricultural transition period. With the advancement of urbanization in China, the outflow of rural labor has become an irreversible trend. How will this affect agricultural development? According to the new economic theory on labor mobility, it is presumed that farmers in developing countries are faced with the dual constraints of capital mobility and risks in agricultural production, assuming that there exist an underdeveloped rural labor market, a rural capital market, and a rural risk market.115 Furthermore, the income earned by migrant farmers can not only guarantee family life needs, but also promote agricultural productive investment and raise agricultural production capacity.116 By way of empirical research, Taylor and some other scholars have quantitatively examined the impact of rural migrant workers on agriculture and rural households economically.117 It is found that, assuming the farming scale remains constant, a migrant worker would directly reduce agricultural income of the household, but by remittance, a migrant worker would indirectly increase agricultural income, so a migrant worker will reduce the agricultural income of a rural household. However, not all remittance from migrant workers can be put into agricultural production. Only farmers with better irrigation facilities and more agricultural tools will apply remittance to expand cash crop production or grain production, while those who have poor irrigation facilities and fewer tools will face a sharp decline in farm products due to the loss of labor.118 The loss of agricultural labor and the increase of non-agricultural income brought by migrant labor will enable farmers to operate agriculture extensively, but the remittance income of migrant workers can help farmers to invest more in production factors such as pesticides and fertilizers.119 Some 115  Stark, O. & Bloom, D. E. The New Economics of Labor Migration [J], The American Economic Review, Vol. 75, No. 2, 1985. 116  Qian, Wenrong & Zheng, Liyi. The Impact of Labor Migration on the Household Income of Farmers [J], Agricultural Technology and Economy, 2011 (1). 117  Taylor, J. E., de Brauw, A. & Rozelle, S. Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China [J], Economic Development and Cultural Change, Vol. 52, No. 1, 2003. 118  Wouterse, F. S. & Taylor, J. E. Migration and Income Diversification: Evidence from Burkina Faso [J], World Development, Vol. 36, No. 4, 2008. 119  Mochebelele, M.  T. & Winter  – Nelson, A.  Migrant Labor and Farm Technique Efficiency in Lesotho [J], World Development, Vol. 28, No. 1, 2000.

50 

W. CHEN

scholars have also found that, although rural households with migrant workers can purchase more advanced means of production, the inward remittance has bred “lazy” behaviors among other family members.120 A case in point is that the double-season rice cultivation changed to single-­ season in southern China. Therefore, if the inflow of migrant workers’ remittance is not accompanied by corresponding expansion of production scale, the substitution of capital for labor will lead to greater waste of resources in the production process. Nansheng Bai conducted an empirical study based on the data from the surveys in Sichuan Province and Anhui Provinces. The following hypotheses are proved by the survey data of the two provinces: (1) In areas where cash is scarce, the marginal benefit of additional cash input to agricultural production is higher than the marginal benefit of additional labor. The positive effect of cash income brought back by migrant labor is higher than the negative effect brought by labor reduction. (2) In areas where cash is not scarce, the absolute amount of cash does not affect agricultural production. The marginal benefit of additional cash input for agricultural production is not obvious, and additional labor input is more important. The negative effect of labor shortage in agricultural production may result in poorer agricultural production than that by farmers who remain at home.121 Evidently, there is a substitution of funds for labor among migrant workers. The fundamental reason is that, in the early stage of China’s industrialization and urbanization, there is no corresponding land circulation along with the flow of labor. Consequently, the scale of agricultural production has not expanded, and the substitution of funds for labor becomes the main form of change in factor structure. Although Nansheng Bai does not directly study the transformation of agricultural development mode, he provide inspiration for the study of the transformation of China’s agricultural development mode: in the process of agricultural development, the substitution between elements often leads to the transformation of development mode. In the process of urbanization and industrialization, the labor flow has shown an obvious reverse elimination trend in China. Capable farmers gradually move out of the rural areas and enter non-agricultural sectors, 120  Azam, J. P. & Gubert, F. Those in Kayes: The Impact of Remittances on Their Recipients in Africa [J], Revue Economique, Vol. 56, No. 6, 2005; The Influence of Family Endowment by Li Gucheng on the Technical Efficiency of Farmers’ Family Management Impact [J], Statistical Research, 2008 (1). 121  Cai, Fang & Bai, Nansheng. Labor Mobility during China’s Transition [M], Social Sciences Academic Press, 2006.

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

51

which may cause agricultural economic organizations to gradually lose their viability,122 and further reduce agricultural labor productivity. Education is the most important factor affecting whether farmers will migrate to work, because it is much easier for well-educated laborers to find a job and education helps to reduce the information cost in job-­ hunting, so that laborers can quickly find opportunities, better coping with regional-adverse situations like the decline of regional labor demand and industrial restructuring. Age is another factor affecting labor mobility, for youth are healthy and more ready to accept new things. Gender is another important factor. Traditional customs, culture, and the needs of businesses have also become the reasons for the selective flow of labor.123 The impact of high-quality labor migration on emigration has become a hot issue in the study of development economics. Stark and Wang and Kanbur and Rapoport have studied the impact of high-quality labor migration on emigration in their review.124 Kanbur and Rapoport also provide an analysis model for studying positive feedback on the accumulation of human capital in the areas of immigration and emigration. Domestic scholars have two distinct views when discussing the impact of the selectivity of labor flow on China’s economic development. Scholars with a less positive view believe that the trend of reverse elimination in the process of rural labor flow has led to greater losses of already scarce rural human resources, which is another deprivation of rural areas by cities, and will further widen the urban—rural income gap125. Scholars with more positive views believe that the selective transfer of labor has a positive effect on the

122  Wen, Guanzhong. The Trend of Reverse Elimination in Rural China [N], 21st Century Business Herald, 08-16-2004; Liu, Yuxiang, Sun, Liangyuan. Reverse Elimination, Financial Subsidies and Low-efficiency Development of Agriculture: Based on the Investigation of Rural Areas in Northern Hunan [J], Finance and Trade Research, 2006 (5). 123  Wu, Jianhua & Qi, Baojin. A Probe into the Technical Related Factors of Labor Mobility: An Empirical Study Based on Jiangsu Jinhu Data [J], Issues in Agricultural Economy, 2010 (5). 124  Stark, O. & Wang, Y. (2002), Inducing Human Capital Formation: Migration as a Substitute for Subsidies [J], Journal of Public Economics, 86 (1): 29–46; Kanbur R. & Rapoport, H. 2005, Migration Selectivity and the Evolution of Spatial Inequality [J], Journal Economic Geography (5), pp. 43–57. 125  Hou, Fengyun & Xu, Hui. Human Capital Interpretation of the Development Gap in Urban and Rural Areas [J], Theoretical Journal, 2004 (2); Li, Lutang & Zhang, Yuxiang. The Influence of Rural Human Capital Investment Income Dislocation Effect on Rural Economy and Countermeasures [J], Agricultural Modernization Research, 2006 (4).

52 

W. CHEN

education needs of rural households and human capital investment.126 Although the latter view correctly recognizes the enthusiasm of human capital investment in the process of selective labor flow, its purpose is to better transfer from agriculture, thereby further enforcing reverse elimination in the non-agricultural transfer of agricultural labor. The “aging”, “feminization”, and “low quality” of agricultural labor force are results of competition in labor market, which constitutes a severe challenge to China’s agricultural modernization. To cope with the trend of reverse elimination in the process of non-agricultural labor transfer, a series of technological innovations and new agricultural production factors for reducing agricultural intensity are included in agricultural production functions, such as pesticides, herbicides, fertilizers, and genetically modified products. “Outsourcing” organizational innovations, like plant protection services and machine farming services, has also emerged in the process of agricultural production.127 Jinying Xu and Jin Lu believe that, after the division of labor, some high-quality farmers and agrotechnicians specialize in agricultural machinery service. For them, agricultural machinery will become the basic means to obtain maximum profits. The new combination of production factors is a specialized organization endogenous to existing agricultural production methods, an evolution of agricultural development mode itself, most of which, unfortunately, aims at reducing labor intensity, at the expense of the environment. Jianxiong Guo and others, integrating labor mobility, agricultural scale operation, the education of migrants, and the transformation of agricultural development mode into one model, believe that the “Liu-Fei-Ranis” agricultural development model faces a theoretical dilemma of being unable to obtain the expected conclusions if selective transfer is included.128 In practice, this dilemma may be bypassed by the emergence of new development 126  Liu, Wen. Research on Human Capital Effect in Rural Labor Flow [J], Agricultural Modernization Research, 2004, (3); Wang, Zhaoping. Migration and Human Capital Accumulation of Rural Poor Population in China—Concurrently Discussing Geographical Environment Determinism [J], Arid Area Resources and Environment, 2007 (3). 127  Xu, Jinying & Lu, Jin. The Industrialization of Agricultural Machinery Service and the Transformation of Agricultural Production Mode in China [J], Agricultural Technology Economy, 2000(2); Zhou, Bo & Yu, Leng. The Impact of Agricultural Technology Application on Farmers’ Income-Taking Jiangxi Tracking and Observing Farmers as an Example [J], Chinese Rural Economy, 2011 (1). 128  Guo, Jianxiong & Liu, Ye. Selective Migration and Deepening of Human Capital in Rural Labor [J], Journal of Humanities, 2008 (4).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

53

opportunities bred by the educational deepening effect of selective transfer. Assuming that the dynamic increase of average human capital of agricultural labor force is possible, the agricultural development goal can still be achieved on the designed progressive path to industrialization, urbanization, and agricultural technological advancement in the Liu-Fei-Ranis agricultural development model against the background of migration. The key lies in establishing a “compensatory education” system for rural areas to promote the dynamic improvement of human capital for agricultural practitioners. The trend of reverse elimination of farmers in the process of urbanization and industrialization in China has led to a lower viability of agricultural labor production organizations. The reason is that the land circulation cost is too high to expand the scale of agricultural production through capital expansion. In a society where resources can flow freely, if the price of one element rises relative to the price of others, it will lead to a series of technological changes that reduce the relative demand of such elements. Hence the constraints of resource scarcity can be somewhat alleviated because of technological advancement and the replacement of the relatively scarce elements. The ability of a country to achieve rapid growth in agricultural productivity and output rates depends on its ability to effectively select various development pathways. If it is not possible to choose a way to effectively break the resource endowment constraints, this will delay the process of agricultural development and economic development.129 China’s current agricultural product prices are higher than the international market by 30% to 50%.130 Most of the farm products from areas with high farmland density (except rice) have higher production costs. One primary cause is that China’s crop production industry is small in scale and labor input costs are high.131 From 1996 to 2007, except for cotton and oil crops, the net income of other farm products declines, and some farm products even suffer losses.132 Grain production profit is far 129  Liu, Fengqin. Study on the Conditions and Effects of Rural land Scale Management: Taking Northeast China as an Example [J], Management World, 2006 (9). 130  Fan, Gang. WTO’s Impact on China’s Economy [N], 21st Century Business Herald, January 14, 2002. 131  Huang, Jikun & Ma, Hengyun. Price Differences  – International Comparison of China’s Major Agricultural Products Prices [J], International Trade, 2000 (10). 132  Han, Jun. Re-recognizing the Status of Strengthening the Basic Position of Agriculture in the New Stage[N], People’s Daily, February 15, 2008.

54 

W. CHEN

lower than that of planting cash crops or working elsewhere, which consequently leads to a large number of grain fields being abandoned, slow grain production growth, or even drastic decline in economically developed coastal areas.133 Despite a series of supportive policies such as agricultural subsidies, domestic grain production increased for eight consecutive years from 2004 to 2011, but the comparative income of grain production has not increased, the value-added income shared by grain farmers has been low, and farmers’ enthusiasm for grain production has declined. In 2010, the total number of farmers working in cities across the country reached 242.23 million, resulting in large areas of unproductive farmland, and the multiple cropping index drops drastically, especially in the hilly areas that have complex topography, scattered population, and fragmented land, which all make scale operation difficult.134 The reason is that, under the current production mode, the comparative benefits of agricultural production, especially grain production, are too low to attract land resources allocated to grain production. According to a survey among 187 rural households in Hongshan District of Wuhan City on “The Option Value and Externality of Rural Land Conversion”, a project funded by PhD Programs Foundation of Ministry of Education of China, farmers adopted the “midseason rice-late rice-rape” planting system in 2009 and the annual net income was ¥613/mu, the profit rate of planting rice being 0.5108 and the net income being ¥261.11/mu. Obviously, as the scale of rice planting has not reached 0.5 hectares, the efficiency of small-scale farmland planting is very low135 and it is difficult for farmers to maintain their living by planting, and part-time farming becomes an inevitable choice. Therefore, over the past few years, scholars and the Chinese government have been actively promoting the circulation of land use rights and farmland concentration to skilled farmers in order to achieve scale operations. However, due to economic development and farmland property rights and other institutional constraints, the rural land circulation rate has been very low. In 1999, the amount of farmland subcontracted by 133  Yu, Keping. On the Issue of “Appropriately Large Scale Operation” of Agriculture – Vigilance and Compulsory “Two-field System” Deprivation of Farmers [J], Marxism and Reality, 1997 (6). 134  Wu, Juan. Reflections on China’s Food Security Protection [J], Issues in Agricultural Economy, 2012 (3). 135  Rui, Dingjie & Kang, Saiyou. Rethinking the Land Reform in the Philippines [A]. In Fulin Chi (Ed.), China’s Rural Land System Reform after the Entry into 21st Century [C]. Beijing: China Economic Publishing House, 2000.

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

55

farmers was only 0.2 mu/rural household, that is, only 2.52% of the farmland was transferred; in 2006, it was 4.57% and in 2008 it was 8.6%.136 It can be seen that the scale of land circulation and the cost of circulation are important variables in the large-scale operation of agriculture. It is not only a policy tool to promote the transformation of agricultural development mode, but also an important condition for realizing “resource and ecologically sound agriculture”. The key to land circulation efficiency is the effectiveness of the land property rights system. It not only reduces the contracting costs between participants, but also motivates the participants.

5   The New Stage of the Development of Modern Agriculture: The Domestic Resource and Ecologically Sound Agricultural Practice and the Latest Development of World Agriculture The Third Plenary Session of the 17th CPC Central Committee officially proposes to develop a “resource-conserving, environmentally friendly society” and “resource-conserving, environmentally friendly agriculture” in China.137 Since then, theoretical researchers have begun to study “resource and ecologically sound agriculture”, which became an agricultural development practice in China. The theory of “resource and ecologically sound agriculture” has similarities to theories of “organic agriculture”, “eco-agriculture”, “circulating agriculture”, and “precision agriculture” in Europe and the United States. China’s construction of “resource and ecologically sound agriculture” will not only focus on its own situation, but also make creative use of the experience of European and American countries to realize sustainable agricultural development by transforming traditional agricultural production mode. The leading global agricultural theories, such as “sustainable agriculture”, “circular agriculture”, “eco-­ agriculture”, “organic agriculture”, “green agriculture”, and “low-carbon agriculture”, constitute the theoretical and practical origins of “resource and ecologically sound agriculture”.

136  Luo, Biliang & Li, Shanpu. Transaction Costs of Farmland Transfer: Williamson Analysis and Guangdong Evidence [J], Issues in Agricultural Economy, 2010 (12). 137  Selected Works of Important Documents since the 16th National Congress of the Communist Party of China (Chinese Edition) [M], Beijing: Central Literature Publishing House, 2006.

56 

W. CHEN

American scholar Brown is the first to expound on systematically “sustainable society” and extend it to the theory of “sustainable agriculture” to define ecological sustainability, social sustainability, and economic sustainability – the triple goals of sustainable agriculture.138 Douglass believes that sustainable agriculture defines a kind of regenerative agriculture, which is a series of agricultural development practices that make the eco-­ environment a virtuous cycle, based on which he puts forward “agricultural sustainability”.139 Altieri divides agricultural sustainability into four aspects: environmental soundness, land resilience, social acceptability, and economic rationality. He integrates socio-economic factors and therefore enriches the theory of agricultural sustainability.140 In 1988, Food and Agriculture Organization of the United Nations (FAO) concluded that sustainable agriculture is an economically viable, technically appropriate, and socially acceptable model of agricultural development that protects land, water, plant, and animal genetic resources from environmental degradation and ensures continued satisfaction for the needs of contemporary and future generations.141 In 1991, at the Danbo International Conference on Agriculture and Environment in the Netherlands, the FAO defined the three strategic objectives for sustainable agriculture as “food security by ensuring an appropriate and sustainable balance between self-sufficiency and self-reliance; employment and income generation in rural areas, particularly to eradicate poverty; and natural resource conservation and environmental protection”.142 Agenda 21, adopted by the United Nations “Environment and Development” conference in Rio de Janeiro, Brazil, in 1992, regards sustainable agricultural development as a fundamental guarantee and priority for sustainable development, thus making sustainable agriculture a strategic and specific practice in countries all over the world.143  Brown Lester. Building a Sustainable Society (1981).  G.  Douglass. Agricultural Sustainability in a Changing World Order [M], Westview Press, 1984. 140  Miguel A.  Altieri. Agroecology: The Science of Sustainable Agriculture [M], Westview Press (Boulder), 1989. 141  FOA. The den Bosch Declaration and Agenda for Action on Sustainable Agriculture and Rural Development: Report of the Conference [M]. FAO/Netherlands Conference on Agriculture and the Environment, S – Hertogenbosch, The Netherlands, FAO, Rome, 1991. 142  Etinne Nel & Tony Binns. Rural Self – Reliance Strategies in South Africa: Community Initiatives and External Support in the Former Black Homelands [J], Journal of Rural Studies, 2000, 16 (3): pp. 367–377. 143  Shang, Mingrui. Exploring the Scientific and Technological Problems in the Sustainable Development of Agriculture and Rural Economy in Gansu[J], Sci & tec and Economy, 2010 (2). 138 139

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

57

It is safe to contend that sustainable agriculture is a modern agricultural development trend that has been formed and gradually evolved to be the mainstream approach since the mid-1980s. It integrates various future-­ oriented concepts for agriculture transformation, including organic agriculture and eco-agriculture, which embody sustainable agriculture. The United States is the first in the world to propose and practice sustainable agriculture, and other developed countries have also already begun to explore the path to sustainable agriculture. In 1985, the California State Legislature passed The Sustainable Agriculture Research and Education Act and established the Institute for Sustainable Agriculture. In 1987, the US Department of Agriculture listed sustainable agriculture as the official research plan and successively proposed three designs, low-input sustainable agriculture, high-efficiency sustainable agriculture, and the Act of Continuation and Education, and actively put them into practice. France established the National Environmental Protection Agriculture Committee in 1988. It believes that environmentally friendly agriculture can eliminate the negative impacts of intensive agriculture and is an effective way to protect the rural eco-environment. From the Japanese perspective, Dr. Kada Ryohei writes in Environmental Protection and Sustainable Agriculture (1993) that, safe, high-quality, and reliable farm products can be provided by reusing and reproducing resources, and by protecting geographical resources and the eco-environment by applying the minimum amount of necessary pesticides and fertilizers to ensure corresponding productivity and economic benefits.144 Circular agriculture stems from circular economy theory proposed by Kenneth Boulding, and is understood to abandon “the old single-­program economy” and establish a “new circular economy”. This means that, in order to protect the environment and conserve resources, we need to reduce resource input and recycle resources and waste.145 Based on this theory, efficient use and recycling of resources is at the core; reduction, reuse, and recycling is the principle; and low consumption, low emission, and high efficiency are the attributes. This requires a transformation from the linear growth model, which relies on resource consumption, to a circular development model, which relies on ecological resources, in the 144  Zeng, Zungu, et  al. A Preliminary Study on the Regional Model of Agricultural Industrialization—Taking Jiangsu as an Example[J], Geographical Research, 2002(1). 145  Kawagoe, T.  Y. Hayami. An Intercountry Comparison of Agricultural Production Efficiency [J], American Journal of Agricultural Economics, 1985 (8): pp. 162–177.

58 

W. CHEN

whole process of utilizing and developing agricultural resources. In China, “Sangji Fish Pond” (silk and fisheries interdependent industry) is the earliest model of circular agriculture, and the British “Soil Association”, established in 1946, which advocates returning to soil organic matter to maintain its fertility and biological balance, is an early classic case of a comparative experiment between conventional agriculture and circular agriculture in the academic arena.146 Domestic scholars’ research on circular agriculture began in the 1980s. For example, Qisheng Wen believes that, as an agricultural production process, circular agriculture is a continuous cyclical process between agricultural environment, agricultural organisms, and human society.147 Since the beginning of the twenty-first century, many scholars have further deepened the theory of circular agriculture,148 which distinguishes essentially circular agriculture, eco-­ agriculture, and green agriculture; clarifies the basic concepts of circular agriculture; and further studies the development model of circular agriculture. In 1970, American scholar William Albrecht incorporated the basic theory of ecology into the development system of organic agriculture and proposed the concept of “eco-agriculture”.149 In 1981, British agronomist Worthington defined eco-agriculture as a small-scale agricultural system that is self-sustaining and low-input, economically viable, environmentally, ethically and aesthetically acceptable,150 believing that agricultural development should be based on ecology. As early as 1924, Germany had developed eco-agriculture, in which organic fertilizers or long-acting fertilizers are preferably applied rather than compound chemical fertilizers, rotation or intercropping is developed and soil fertility is maintained by

146  Ma, Shiming & Sauerborn. J. Historical Review and Development of World Organic Agricultural development [J], China Agricultural Sciences, 2004 (10). 147  Wen, Qisheng. Circular Agriculture  – Economic Cycle and Ecological Cycle in Agriculture [J], China Rural Economy, 1986 (8). 148  Xuan, Yanan, Ou, Minghao & Qu, Futian. The Meaning of Circular Agriculture, Economic Interpretation and Its Political Implications [J], China Population, Resources and Environment, 2005 (2). 149  Coleman, D.  C. Agro-ecosystems and Sustainable Agriculture [J], Ecology, 1989, 70 (6): 15–90; Prasada D. S., T.J. Coelli Catch – Up and Convergence in Global Agricultural Productivity [J], Indian Economic Review, 2004, 39: pp. 123–148. 150  Kiley-Worthington, M. Ecological agriculture. Agriculture and Environment, 1981 (4).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

59

humus.151 To sum up, as a modern agricultural development mode, eco-­ agriculture builds on traditional agricultural experience, follows the principles of ecology and ecological economics, and takes advantage of modern scientific and technological achievements and management to obtain relatively higher economic, ecological, and social benefits.152 Domestic research on eco-agriculture includes the nature and significance of eco-agriculture, problems in the practice of eco-agriculture, practical modes of eco-agriculture, and related technologies. Lihua Wang et al. (2005) and Anna Lu (2006) have researched eco-agriculture modes, exploring the eco-agriculture modes in different regions: Dalian Beisan City and Tianjin Baodi District153. Yulin Deng (2006) and Defang Lai and Kuimin Shen (2003) have studied, respectively, the ecological agricultural development modes of Luocheng District and Chengdu City in Sichuan, and analyzed the development modes, scales, and countermeasures of eco-­ agriculture.154 Domestic scholars believe that the eco-agro-technology system includes eco-agriculture comprehensive evaluation technology, material and energy recycling technology, agro-ecological comprehensive improvement technology, soil erosion comprehensive management, small watershed comprehensive utilization development technology, biological symbiosis, full use of time and space, and nutritional ecological niche technology.155 For a long time China has been applying organic fertilizers to maintain soil fertility and ecological balance and has summed up the idea of organic agriculture. This has been referred to and praised by American soil 151  Ren, Aihua. A Comparative Study of the Development of Foreign Ecological Agriculture [J], Rural Agricultural Farmers, 2004 (12). 152  Wang, Weimin. Theory and Practice of Ecological Agriculture in China [J], Ecological Economy, 1998 (6). 153  Wang, Lihua, Han, Zenglin & Yu, Jinguo. Optimization Selection and Application of Ecological Agriculture Model-Taking Dalian Beisan City as an Example [J], Rural Economy, 2005, (1); Lu, Anna. Regional Ecological Agriculture Model-Taking Baodi District of Tianjin as an Example [J], Anhui Agricultural Sciences, 2006, (2). 154  Deng, Yulin. Talking about the Advantages and Countermeasures of Promoting Sunto-Horse-to-Plant Cultivation Mode in Gongzhou Town of Hezhou City [J], Anhui Agricultural Sciences, 2006 (2); Lai, Defang & Shen, Kuimin. Typical Ecological Agriculture Model and Benefit Analysis in Wucheng District [J], Fujian Agricultural Sci & tec, 2003 (6). 155  Liu, Mei, Yi, Fahai & Liu, Mingpei. Research on the Technical Support System of Ecological Agricultural development in China [J], Agricultural Technology Economy, 2002 (1).

60 

W. CHEN

physicist Franklin Hiram King in his book Farmers of Forty Centuries, or Permanent Agriculture in China, Korea and Japan (1911), and by British plant pathologist Sir Albert Howard in his book An Agricultural Testament (1943). In 1942, American scholar J.  I. Rodale started the magazine Green Horticulture and Agriculture and conducted organic agricultural experiments on Rodale Farm, which is the origin of the American organic agriculture movement.156 In the 1970s and 1980s, a number of organic agricultural research institutions were established, such as the International Federation of Organic Agriculture Movements (IFOAM), and the French National Association of Agricultural Biotechnology (FNAB), and also the world’s largest organic agriculture research institute, the Swiss Institute of Organic Agriculture.157 The emergence of these research institutions has greatly promoted the development of organic agriculture, marking the international study on organic agriculture as a new development mode entering a new period. This shows that, from the emergence of organic agriculture in the early twentieth century to the present, this agricultural mode has become a global movement after years of development.158 Green agriculture is an economic concept with Chinese characteristics. It is developed on the basis of green food (also a concept with Chinese characteristics). As an agricultural development view, conceptually, green agriculture and sustainable agriculture are equivalent, for both view coordinated development of ecological economy as the core of agricultural development. Green agriculture is essentially a development model or system, practical form, and vivid description of sustainable agriculture. Therefore, the start and development of green agriculture is relevant to the exploration of sustainable agriculture. Internationally, there are “quasi-­ green agricultures” like “eco-agriculture”, “bio-agriculture”, and “natural agriculture” that are similar to China’s green agriculture in development mode. In terms of “quasi-green foods”, there are “organic food”, “ecological food”, “natural food”, and “health food” that are similar to Chinese 156  Fried H. O. & Lovell, C. A. Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis [J], Journal of Productivity Analysis, 2002, 17: pp. 157–174. 157  FAO. Organic Agriculture, Environment and Food Security [J], Environment and Natural Resources, 2002: pp. 6–48; Rundgren G., Organic Agriculture and Food Security [J], IFOAM Dossier 1, Organic Agriculture and Food Security, 2002: pp. 1–20. 158  Chen, Hongbing, Lu, Jindeng, Zhao, Liya & Li, Zhaohua. The Origin and Development Status of Circular Agriculture [J], China Agricultural Resources and Regional Planning, 2007 (6).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

61

green food. Foreign research on “quasi-green agricultures” and “quasi-­ green foods” centers on organic agriculture, organic food, and sustainable agriculture.159 Although “quasi-green foods” and “quasi-green agricultures” go by different names in other countries, the purpose and aim are essentially the same, namely, producing clean food, improving people’s health, and promoting sustainable agricultural development on clean land, using clean production methods.160 Therefore, the research and development of green agriculture is linked to various agricultural development models and the theoretical and practical exploration of sustainable agriculture in the process of modern agricultural development. As a modern form of agriculture characterized by “three lows, two highs”, namely, “low consumption, low pollution and low emission, high quality and high efficiency”, low-carbon agriculture advocates a fundamental transformation of agricultural development mode, maximizing resource and energy efficiency, building up clean energy structure, achieving cleaner production, and advancing technological innovation, institutional innovation, and sustainable development. Low-carbon agriculture is a form of low-carbon economy, which maintains ecological security, improves climatic conditions, promotes energy-saving and emission reduction technologies, and develops biomass energy and renewable energy. It functions well in “continuous production, safety guarantee, good quality, climate regulation, and ecological conservation”.161 By 2009, 25 countries in Europe had developed or embarked on a national strategy for agricultural adaptation to climate change, a low-carbon agricultural development strategy. Some countries have set up carbon trading platforms and low-­ carbon metrics for agriculture, promoting farming and herding methods that will reduce emission162 and improve agricultural carbon sequestration capacity to promote the development of low-carbon agriculture. In recent years, Chinese scholars have also begun to explore the specific problems in the construction of low-carbon agriculture. For example, Huang Feixue (2011) compares the use of property rights definition and taxation policies 159  Zhao, Xinyong. Research on the Development of Green Food Industry in Heilongjiang Province [D], Northeast Forestry University, 2005. 160  Liang, Zhichao. History, Current Situation and Trend of Green Food Development in Foreign Countries [J], World Agriculture, 2002 (1). 161  Ding, Shengjun. Modern Agriculture Goes to High Quality and High Efficiency [N] People’s Daily, June 7, 2012. 162  Zheng, Heng & Li, Yue. Analysis of the Development Model of Low-carbon Agriculture [J], Issues in Agricultural Economy, 2011 (6).

62 

W. CHEN

to regulate the efficiency of low-carbon agriculture.163 Zuhui Huang (2011) et al. have systematically studied the carbon sequestration capacity of agriculture.164 Although “resource and ecologically sound agriculture” was formally established in 2008, domestic research on it began earlier than that. Qianji Ye (1998) believes that eco-friendly-oriented agriculture mainly consists of eco-agriculture, circular agriculture, and organic agriculture.165 Rongsheng Li (1999) takes the lead in constructing an evaluation index system for resource-conserving agricultural structure in China. He believes that the resource-conserving agricultural structure includes four aspects: water saving, land saving, time-saving agriculture, grain-saving herbivorous husbandry, fast-growing, woody grain and oil, three-dimensional forestry, bait-saving multi-layered fisheries In this theory, the purpose of these conservation measures is to increase production and efficiency and promote sustainable agricultural development, hence integrating “resource and ecologically sound agriculture” production and farmers’ income increase into one analytical model.166 According to the definition of a “resource and ecologically sound society”, Xinyu Peng (2011) believes that resource-conserving agriculture is an intensive agricultural production system centering on land and water conservation, including three-­ dimensional multi-layer agriculture, advanced irrigation systems, irrigation techniques, and fertilization systems. Eco-friendly agriculture is a clean agricultural production system centering on circular agriculture, including the reduction of pesticides, fertilizers and mulch, the innovation of planting technology, the realization of agricultural production, and the recycling of agricultural waste.167 Tongming Tu and Yapeng Wang (2009) believe that a “resource and ecologically sound society” in agricultural

163  Huang, Feixue. Analysis of the Efficiency of Kos and Pigou Means for Ecological Compensation—Taking Garden and Green Space Resources as an Example [J], Issues in Agricultural Economy, 2011 (3). 164  Huang, Zuhui & Mi, Songhua. Research on Agricultural Carbon Footprint—Taking Zhejiang Province as an Example [J], Issues in Agricultural Economy, 2011 (11). 165  Ye, Qianji. Ecological Agriculture: The Future of Agriculture [M], Chongqing: Chongqing Publishing House, 1998. 166  Li, Rongsheng. On Resource-saving Agricultural Structure [J], Resources Science, 1999 (2). 167  Peng, Xinyu. Path Selection and Institutional Innovation of Rural Two-oriented Social Construction in Hunan Province [J], Hunan Social Sciences, 2011 (4).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

63

development can be realized by developing eco-agriculture168 and obtaining comprehensive effects of production development, eco-environmental protection, energy recycling, and economic benefits. In the rural areas, the focus should be on energy conservation and emission reduction; promoting low energy consumption and low emissions; promoting cleaner energy such as solar energy, wind energy, and biogas; and developing green, eco-­ friendly, and energy-saving industries, in order to create a rural eco-­ environment where human beings and nature can enjoy harmonious coexistence which offers sustainable production and living spaces. Bingdong Zhao and Qingliang Zhao (2011) hold that “resource and ecologically sound agriculture” has the characteristics of intensive farming, efficient income increase, and sustainable development.169 In recent years, scholars have also noted the fact that “resource and ecologically sound agriculture” is difficult to promote. For example, Shaobing Zhang and Yapeng Wang (2008) state that, to ensure food security, there is a contradiction between China’s agricultural income increase and the reduction of environmental pressure, making it difficult to advance the development of “resource and ecologically sound agriculture”.170 The “decision” of the Third Plenary Session of the 17th CPC Central Committee clarifies the goals and tasks of developing “resource and ecologically sound agriculture”. Following this, scholars in China have undertaken thorough analysis of the significance, methods of realization, and related issues of the development of “resource and ecologically sound agriculture”. For example, Tao Yang and Biliang Luo (2006) prove the significance of China’s development of “resource and ecologically sound agriculture” through analysis of the urgency of China’s modern agricultural transformation, the fragility of resources and environmental security, the reality of the dual economic structure in urban—rural areas, and the strong bond between resources and environment.171 Hui Zhao and Jianing 168   Tu, Tongming. On Agricultural Mechanization and Two-oriented Agricultural Construction [J], Hubei Agricultural Mechanization, 2009 (2). 169   Zhao, Bingdong & Zhao, Qingliang. Analysis of Resource-saving Agricultural Production System [J], Journal of Henan University (Natural Science Edition), 2011 (4). 170  Zhang, Shaobing & Wang, Yapeng. The Impact of Modern Agricultural Development on the Environment and China’s Countermeasures [J], Agricultural Modernization Research, 2008 (2). 171  Yang, Tao & Luo, Biliang. Basic Logic for Solving the Problem of “Agriculture, Rural Areas and Farmers” [J], Journal of South China Agricultural University (Social Science Edition), 2006 (2).

64 

W. CHEN

Zheng (2009) promote the construction of “two-oriented agriculture” through the implementation of rural clean-up projects. They believe that rural clean-up projects are an important measure for building a “resource and ecologically sound society”. It is necessary to speed up the process of improving water supply, kitchens, toilets, livestock pens, and centralized waste disposal to improve rural sanitation and living conditions.172 Dongliang Zhou (2009) argues that the underlying reasons for the intensive use of land in the construction of “resource and ecologically sound agriculture” are unscientific land planning, an imperfect legal system, and a long-term dual-track system in land allocation. Therefore, it is i­ mperative for local governments to focus on planning, macro-control, legal construction, and market cultivation.173 Haiwen Wang (2010) analyzes the three types of model selection for the development of “resource and ecologically sound agriculture” in Changsha-Zhuzhou-Xiangtan city cluster, and proposes five aspects in constructing “resource and ecologically sound agriculture”: “resource and ecologically sound” development environment, “resource and ecologically sound” production system, “resource and ecologically sound” system, “resource and ecologically sound” technological innovation, and “resource and ecologically sound” lifestyle.174

6   The Transformation of Agricultural Development Mode in the Construction of “Resource and Ecologically Sound Society”: The Current Limitations and Future Orientation In summary, domestic and foreign scholars have carried out a series of explorations on agricultural development mode based on existing economic theories and current agricultural development experience, and have achieved many valuable results. However, in theory, current economics 172  Zhao, Hui & Zheng, Jianing. Implementing Rural Cleanup Project Promoting the Construction of New Socialist Countryside [J], Agricultural Environment and Development, 2009 (2). 173   Zhou, Dongliang. Thoughts on the Construction of Two-oriented Agriculture Production System [J], Journal of Jiangxi Agricultural University (Social Science Edition), 2009 (4). 174  Wang, Haiwen. Model Selection and Countermeasures for the Development of “Twooriented Agriculture” in Changsha, Zhuzhou and Xiangtan [J], Modern Agriculture, 2010 (12).

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

65

cannot provide a satisfactory analytical framework for the transformation of agricultural development mode; in practice, it is not possible to provide systematic operational plans, thus leaving room for further research: First, classical economics regards the transformation of agricultural development mode as the deepening of the refinement and specialization of agricultural division of labor. To a certain extent, it involves the study of the transformation of development mode. Neoclassical economics, however, is based on the preference for equilibrium analysis, so it is unable to provide a scientific analytical framework for dynamic economic phenomena like transforming the mode of agricultural development. Development economics studies the status of agriculture and the convergence of dual structure in the process of industrialization and urbanization, technological progress, and the substitution of capital for labor, but it fails to provide a scientific analysis tool in terms of internal logic and a mechanism for agricultural development. In the existing literature, Austrian economics and evolutionary economics regard economic development as a process and provide a reasonable framework for explaining the transformation of development mode. Although there is scarce literature that employs Austrian economics and evolutionary economics to analyze the transformation of agricultural development mode, it lays a theoretical foundation for constructing the economics that will transform the way in which agriculture develops. Second, China has always taken food security as the goal of national agricultural development, which is incompatible with the agricultural production targets of local governments and farmers. Coordinating the conflicts of objectives through agricultural subsidies can only be a temporary solution, and fundamentally it cannot solve problems. It is necessary to design the goals of China’s agriculture in line with national development strategy, which will be a guide to direct the transformation of China’s agricultural development mode. The construction of a “resource and ecologically sound society” has become a new constraint in the process of transforming agricultural development mode, and has become a new orientation for agricultural development. The existing literature has not described how to coordinate these goals and achieve a balance. This requires, theoretically, a new model to elaborate, and propose, practically, new measures to solve it. Third, the existing literature has achieved a great deal regarding agricultural resource endowments in the process of urbanization and industrialization in China, especially labor mobility and its structural evolution,

66 

W. CHEN

land circulation, and scale management. Scholars discuss institutional issues like the evolution of rural land fragmentation, and have achieved fruitful results. However, challenging explorations at all levels have been conducted on how to organize agricultural production in the construction of a “resource and ecologically sound society”. The development of digital agriculture through the promotion of rural informatization is a national choice; encouraging industrial and commercial capital to enter agriculture through the circulation of rural land is the choice of local government; attaining more profit through the ownership of land property rights is the choice of farmers. Literature in these areas is scattered and unsystematic. There is currently no relevant research on how to organize agricultural production under the constraints of multiple objectives and build a systematic agricultural production system. Fourth, agro-scientific and technological innovation is an important driving force for agricultural development, but scientific and technological progress also has its negative impacts, and conflicts inherently with environmental pollution control and sustainable development. “Resource and ecologically sound society” construction needs to solve the problems of resource wasting and environmental pollution in agricultural development, so that an internal coordination mechanism can be established to provide new content for the transformation of agricultural development mode. Currently, there are many problem analyses, but few problem solutions. Although there is research linking agro-sci-tech progress, land circulation, and large-scale organizations of agriculture, it is fragmented and lacks systematicity. Therefore, it is necessary to study in depth the internal mechanism of the transformation of agricultural development mode, and incorporate scientific and technological progress into its internal mechanism to study the reorganization and optimal allocation of resources in agricultural development. All in all, in the process of transforming the agricultural development mode, each element constitutes an organic part of the whole, and the existing literature generally starts from different angles. It is therefore easy to form differing views on the same issue, thus affecting the realistic explanatory power and significance for transforming agricultural development mode. Transforming the mode of agricultural development is a policy requirement put forward by the central government. It is easy, therefore, to regard this as an empirical question. And the research,

2  AGRICULTURAL DEVELOPMENT MODE: RELEVANT THEORETICAL… 

67

naturally, tends to be empirical and disregards those underlying theoretical issues in the process of agricultural development. The necessity of deepening our theoretical understanding of the transformation of agricultural development mode is an opportunity to incorporate it into the analytical framework of modern economics and promote the development of modern economics. To study the transformation of agricultural development mode, we must have a historical perspective and a global vision. In terms of internal factors, a series of problems, such as industrialization, urbanization, informatization, and populous country, are interwoven and constitute the basic conditions for studying the transformation of agricultural development mode. This involves problems such as agricultural industrial structure evolution, farmers’ income, and employment. However, much of the existing research has abstracted this association and has not taken it as an important variable in the entire complex system. To cope with the major issues in the process of China’s economic development, the author feels that the theoretical framework and analytical tools that are instrumental here are mostly the embarrassing situations in Sinicizing western economics. In addition, China and the western countries, where economics originates, are different in terms of both national conditions and policy support. China is therefore in urgent need of localization research in economics that will promote modern agricultural development.

CHAPTER 3

The Transformation of China’s Agricultural Development with Multiple Goals Under Resource and Environmental Constraints

In the development of human society, each transformation in the development mode could be considered as a new hallmark of human civilization and economic development, as well as an internal catalyst for economic structure changes. China has relatively low resources per capita because of a huge population. Therefore, it is a pressing task for China to accelerate the transformation of agricultural development to build up a new agricultural pattern featuring “low input, low energy consumption, low pollution, and high output” under the direction of constructing a “resource and ecologically sound society” and thereby realizing the multiple goals of the sustainable development of a national economy, which consist of ensuring national food security, environmental protection, resource conservation, an income increase for farmers, and agricultural efficiency.

1   The Status Quo of China’s Agricultural Development Under Resource and Environmental Constraints After three decades of reform and opening-up, China has witnessed an impressive achievement in agricultural development. China’s agriculture has progressed from meeting people’s demand for basic necessities, to speeding up its pace along a path toward modernization. However, the

© The Author(s) 2020 W. Chen, Challenges and Opportunities for Chinese Agriculture, China and Globalization 2.0, https://doi.org/10.1007/978-981-15-3536-9_3

69

70 

W. CHEN

context of China’s agricultural development is also undergoing several significant and profound transformations, which are mainly embodied in the acceleration of agricultural globalization, and increasingly heavy resource and environmental constraints on agricultural development. 1.1  A Timeline of the Transformation of China’s Agricultural Development since 1949 Since 1949, China’s agriculture has shown various features in different phases in terms of modes of production and management. Generally, this dynamic process of the transformation can be divided into three phases. 1.1.1

 hase One: From the Early Days of the People’s Republic P of China to the Reform and Opening-up in 1978 Prior to 1978, China’s agriculture was moving toward collectivization in all respects, and the rural collective ownership of agriculture was established during this period. The socialist economic system had not been completely established as the Socialist China government had just been founded, and its agricultural development policy was not yet consistent. Generally speaking, China’s agricultural development was in recovery. This phase can be further divided into four consecutive sub-phases: land reform with the recovery of agricultural production, socialist transformation with a stable agricultural development, people’s commune with violent fluctuations in the agricultural production, and the Cultural Revolution with a low growth in agricultural production. As the centrally planned economy was dominant, the Chinese government strived to improve the mode of production for faster growth and higher yield, so as to solve the problems of food and clothing. Though there was no stable policy, China’s agriculture continued to develop amid twists and turns. With the construction of agricultural infrastructure such as irrigation, farmland, and farm machinery, total grain output increased from 0.113 billion tons in 1949 to more than 0.3 billion tons in 1978. This increase is also due to an improved mode of production,1 a largely liberated workforce, and an expanded agricultural scale. This provided invaluable experiences and insights for China’s agricultural development in the reform and opening-up period. 1  Huang, Bingxin. The Current Condition and Future Prospect of China’s Staple Agricultural Products [J], Review of Economic Research, 1992 (Z5); Yang, Dinghua. WTO and China’s Food Problem [J], Finance and Development, 2001 (18).

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

1.1.2

71

 hase Two: From the Reform and Opening-up in 1978 P to China’s Entry into the World Trade Organization (WTO) in 2001 The second phase was marked by a comprehensive transformation of China’s agriculture from a centrally planned economy to a market economy. A primary characteristic of this period was that a household contract responsibility system fundamentally undermined the existence of the people’s commune, which tremendously liberated the rural workforce and unlocked the long-term potential in agricultural construction. China’s agriculture developed steadily, and there was an upward trend in grain production during this period (see Fig.  3.1). The agricultural economy progressed from production-oriented to management-oriented, and agriculture moved faster toward commercialization and liberalization. With the reform of rural economic systems growing more intensive, a series of reform efforts in agricultural liberalization had been made, such as pushing forward an overhaul of the agricultural product circulation system, strengthening macro-level regulation of the grain market, establishing and improving the central and local grain reserve system, and accelerating the construction of the agricultural product liberalization system. Furthermore, regional wholesale markets of farm products were established, which greatly contributed to the liberalization of agriculture. The market mechanism played an increasingly critical role in the allocation of agricultural resources, thus making a great contribution to the liberalization of farm products, the industrialization of agricultural development, and the socialization of agricultural service.

Fig. 3.1  China’s grain output (1975–2001)

72 

W. CHEN

1.1.3

 hase Three: From China’s Entry into WTO in 2001 P to the Present This phase featured a shift to agricultural globalization and modernization. China’s agricultural development mode underwent profound and extensive changes. A prominent characteristic was that, impacted by globalization, China’s agricultural development experienced a shift from decentralized farming to centralized farming, with more diversified capital and technological factors. Capital growth and upgraded technology escorted the agricultural development into the modern stage of marketized operation, globalization, and information-based production. In general, this period witnessed a comprehensive transformation of China’s agricultural development from closed-door to openness and competition, an accelerated liberalization of agricultural production, and a shift in farm products from self-sufficiency to increasing dependence on outbound trade. There was a general stable increase in agricultural development scale, and agricultural infrastructural construction developed very quickly. There was a successive nine-year bumper harvest in China’s agriculture beginning in 2004 (see Fig. 3.2), which was the best period on record. However, the share of agriculture in the national economy was continuously slipping, dropping from 15.1% in 2000 to 10.2% in 2010 in terms of GDP.2 China’s agricultural structure improved from a single grain structure to a diverse product structure, and the agricultural development of China increasingly relied on capital and technological input. In 2008, China’s comprehensive agricultural modernization level was approximately 38% of the developed countries.3 The supply of and demand for staple farm products were under severe constraints, represented by an increasing demand for imported farm products (see Fig. 3.2). At the same time, China’s agricultural development became more and more constrained by resources and the environment. An increasingly perilous agricultural resource crisis and a deteriorating eco-environment became new issues urgently requiring attention.

2  Department of Rural Surveys, the National Bureau of Statistics of China. China Rural Statistical Yearbook-2011 [M]. Beijing: China Statistics Press, 2011. 3  He, Chuanqi. China Modernization Report 2012 [M]. Beijing: Peking University Press, 2012: 178.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

73

Fig. 3.2  China’s annual grain output and import. (China’s grain output: 469,460,000 tons in 2004, 484,020,000 tons in 2005, 498,040,000 tons in 2006, 501,600,000 tons in 2007, 528,700,000 tons in 2008, 530,820,000 tons in 2009, 546,470,000 tons in 2010, 571,200,000 tons in 2011, 589,580,000 tons in 2012; China’s grain import: 29,970,000 tons in 2004, 32,860,000 tons in 2005, 31,860,000 tons in 2006, 32,370,000 tons in 2007,38,980,000 tons in 2008, 45,700,000 tons in 2009, 60,510,000 tons in 2010, 58,090,000 tons in 2011, 72,360,000 tons in 2012 (Grain import statistics covering grains, grain powder and soybean). Data sources: China Statistics Yearbook (2004–2012), China Statistics Press)

1.2  Pressure from Resources on China’s Agricultural Development China is not only a leading power in terms of population and agriculture, it is also the largest developing country in the world. China is still in the process of catching up with the developed nations in industrialization and urbanization, and its agricultural development has not yet achieved modernization and consumes large amounts of resources, which also has a tremendous impact on those resources. Therefore, China’s agricultural development is under more pressure than developed nations in terms of resources. As some scholars conclude, developed nations faced resource and environmental constraints after agricultural modernization, while

74 

W. CHEN

China is confronting much more pressure in the process of agricultural modernization.4 1.2.1 Pressure from Human Resources Human resources is one of the most important resources in agriculture. It is the primary productive force for agricultural development, and also a more significant factor than natural resources and capital. In 2010, China’s rural population was 671.13 million, accounting for 50.05% of the total population. The rural labor force was 414.18 million, accounting for 61.71% of the total rural population, and 30.89% of the national population.5 As for the degree of education, the illiteracy rate (including those people who are able to recognize only a few words) was 5.73% out of 100 laborers; the proportion of people with or below junior high school education was 82.61%; the total number of people employed in agriculture made up 67.4% of the total population.6 The overall quality and employment structure were far below the requirements for agricultural modernization. At the same time, with the acceleration of urbanization, the “price scissors” between rural and urban areas developed into a human resource gap, which was presented in the inevitable trend of a large number of rural workers migrating to cities. In 2011, China’s urbanization rate historically exceeded 50%, reaching 51.3%.7 The rural migrant workers totaled over 0.24 billion, and as a result, rural areas have been shrinking at a rate of 20 administrative villages a day.8 The 2006 nationwide sample survey conducted by the Development Research Center of the State Council showed that even at that time, as many as 74% of villages did not have “surplus labor” for city jobs, and only about 25% of villages had a labor force under 40 years of age.9 An in-depth investigation found that more than 50% of the rural labor force born in the 1970s did not or could not farm, more

4  He, Anhua, Lou, Dong & Kong, Xiangzhi. On the Resources and Environmental Constraints for Agricultural Development in China [J], Rural Economy, 2012 (2). 5  The National Bureau of Statistics of China. China Rural Statistical Yearbook-2011 [M]. Beijing: China Statistics Press, 2011. 6  Ibid. 7  Niu, Wenyuan. China’s New Urbanization Report 2012 [M], Beijing: Science Press, 2012. 8  Who Will Farm the Land As 20 Administrative Villages Disappear a Day? [N]. Guangming Daily, October 27, 2011; the survey involved 17 provinces (cities, districts), 20 prefecturelevel cities, 57 counties (cities), 166 towns, and 2749 villages. 9  Ibid.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

75

than 95% born in the 1980s did not or could not farm, and even fewer born in the 1990s knew how to farm. Currently, people employed in farming are primarily those over 40 years of age with an average age of 55.2, and consisting mostly of women.10 The surprising “farmer shortage” experienced by China, where agriculture is the primary sector and enjoys a long history, constitutes an important shift in China’s national condition in the twenty-first century. The number and quality of laborers employed in agriculture are decreasing rapidly, due to the continuous drainage of workforce, rural settlement hollowing, marginalization of agriculture, and a lack of young farmers. The rural workers who could meet the demand of modern agriculture are inadequate, and most of them are poorly educated. All these have a direct negative impact on the absorption of agro-technology, the promotion and application of new varieties and technology in agricultural production, and the upgrade and transformation of the structure of agricultural industry. As urbanization upshifts in China, in the long run an increasing number of the rural labor force will swarm into cities. “Who will farm” and “who will raise pigs” have become two of the most urgent problems to crack for China’s agricultural development. 1.2.2 Pressure from Land Resources With the progress of industrialization and urbanization, China’s farmland preservation is becoming a pressing challenge. In 2012, China’s farmland stood at 1.8279 billion mu, 1.35 mu per capita,11 which was 50% of the world average. Medium- and low-yield land accounted for almost 70% of total farmland, and the overall quality of China’s farmland was not high. First-rate farmland only accounted for 2.7% of the total, high-quality farmland 30%, and medium- and low-quality farmland made up the majority of about 67.3%.12 There were only 51 high-quality farmlands in continuous patches, approximating one billion mu. Among the one billion mu, the irrigable areas were only 0.6 billion mu, and the remaining 0.4

10  She, Yuanmei. Properly Dealing with the Issue of “Successors” of Farming the Land [N]. Farmers’ Daily, April 9, 2011. 11  The National Bureau of Statistics of China. Statistical Communiqué of the People’s Republic of China on the 2012 National Economic and Social Development [N]. People’s Daily, February 23, 2013. 12  Yang, Bangjie. China’s Farmland Has Characteristics of “Three Deficiencies and One Badness” and Thus It Is Urgent to Protect Them [N]. Economic Daily, August 26, 2013.

76 

W. CHEN

Fig. 3.3  Changes of farmland acreage in China (2001–2012). (Source: Communiqué on Land and Resources of China, The Ministry of Land and Resources of the People’s Republic of China)

billion mu were not.13 The few reserves in contiguous patches of a certain scale were few and were primarily located in ecologically fragile places. A net decrease in farmland areas reached 86.1 million mu between 2001 and 2012 (see Fig. 3.3). There is an inevitable trend of land decrease, and the contradiction between land use and population will become more severe due to accelerated industrialization. At the same time, soil erosion and desertification are serious threats because preservation and proper utilization of land have been ignored for a long time. It was estimated that until 2009 more than 1.8 million square kilometers of soil erosion areas were to be treated, and the volume of eroded soil mass per year totaled around 4.5 billion tons for many years.14 Farmland reserve resources are extremely deficient, and the cost of development is very high due to the poor condition of the natural environment.15 13  The Statistics of Farmland Tells That China’s Farmland Is in the Most Dangerous Condition [N]. China Science Daily, April 22, 2008. 14  Soil Erosion Cause Millions of Losses in China’s Farmland per Year [N]. China Land and Resources News, April 20, 2009. 15  The Amount of China’s Farmland Keeps around 1.824 Billion Mu [J]. Land and Resources, 2012(12).

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

77

1.2.3 Pressure from Water Resources The amount and distribution of water resources have a direct bearing on the scale, type, and level of agricultural development. Although the total amount of water resources ranks No.6  in the world, because of unbalanced seasonal distribution, gaps among different regions, and low water resources per capita, China still faces a perilous water shortage compared to the demand. In 2010, the total amount of fresh water resources in China was 3090.6 billion cubic meters, but it was unevenly distributed in the north and south—19.6% in the north and 80.4% in the south.16 China’s freshwater resources per capita were only 2300 cubic meters, almost one fourth of the world average, and one fifth that of the United States, due to which China ranks among the lowest in water resources per capita. Agriculture is a major consumer of water in China. In 2010, the national water supply volume was 602.2 billion cubic meters, of which agriculture occupied 61.3%; the national water consumption was 318.2 billion cubic meters, of which agriculture accounted for 73.6%. The rate of water used for irrigation was the highest, reaching 63% among all types of water use. In terms of water-use efficiency, water waste in agriculture was common, and the effective utilization rate of water resources was still very low. Between 2001 and 2010, the total amount of water resources experienced a dynamic fluctuation while the overall situation remained stable. The total amount of water use increased by 8.2%, and the total amount of industrial water consumption increased by 4.3%, whereas agricultural consumption increased by 19.9% (see Table 3.1). It is estimated that by 2030 the country’s total water demand will reach 1000 billion cubic meters, leaving the water shortage at 400~450 billion cubic meters. 1.2.4 Pressure from Forest Resources China’s forest coverage is low, and its overall forest resources are insufficient to protect land resources. According to the Seventh National Forest Inventory17 in 2010, China’s forest areas were 0.195 billion hectares (≈ 0.48 acres), and its stock volume was 13.721 billion cubic meters. The forest coverage was 20.36%, ranking 139th in the world, only two thirds of the 16  The Ministry of Water Resources of the People’s Republic of China. 2010. China Water Resources Bulletin 2010 [M]. Beijing: China Water and Power Press, 2011. 17  The State Forestry Administration of the People’s Republic of China. The 7th National Forest Resources Inventory and Forest Resources Situation [J]. Forest Resources Management, 2010(1).

78 

W. CHEN

Table 3.1  2001–2010 China’s water resources and usage Year

National total water resources (100 million m3)

National water usage (100 million m3)

Agricultural National water usage water (%) consumption (100 million m 3)

Agricultural water consumption (%)

Agricultural water consumption (100 million m3)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

26,868 28,255 27,460 24,130 28,053 25,330 25,255 27,434 24,180 30,906

5567 5497 5320 5548 5633 5795 5819 5910 5965 6022

62.6 61.4 64.5 64.6 63.6 63.2 61.9 62 62.4 61.3

64 64 77.3 77 76.2 75.7 74.6 74.7 75.4 73.6

1953.28 1910.4 2242.473 2310.77 2255.52 2302.794 2254.412 2323.17 2378.87 2341.952

3052 2985 2901 3001 2960 3042 3022 3110 3155 3182

Source: China Water Resources Bulletins published yearly by the Ministry of Water Resources of the People’s Republic of China

world average. The forest resources per capita were 0.145 hectares (≈ 0.36 acres), less than one fourth of the world average per capita. Its forest stocking volume per capita was 10.151 cubic meters, only one seventh of the world average; 6.60 million mu (≈ 108.7 million acres) of forest areas are converted to non-forest land, open forest land, and shrub land on a yearly basis due to natural disasters and logging. Because of the low coverage, it is hard for forests to regulate climate, conserve water, and prevent soil erosion and desertification, which affects the protection and improvement of the agro-eco-environment. The increasing lack of labor, land, water, and forest resources conflicts with China’s plan of agricultural development. 1.3  Environmental Impacts from China’s Agricultural Development China’s agriculture has followed the path of development featuring low-­ level vertical expansion of farmland, and the increase of farm products. Intensive use of petrochemicals like chemical fertilizers and pesticides has become an important approach to improve output, leaving the

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

79

agro-eco-­environment gravely contaminated. At the same time, pollution brought about by industrialization and urbanization poses another severe threat to China’s agro-eco-environment, which in turn greatly constrains agricultural development and social stability. 1.3.1

 ater, Soil, and Air Pollution Caused by the Overuse W of Chemical Fertilizers and Pesticides China is the world’s top consumer of chemical fertilizers, and its consumption reached 55.617 million tons in 2010, constituting 34.4% of global consumption. Its pesticide consumption amounted to 1.758 million tons, accounting for 20% of the world’s aggregate. Considering the sown area in 2010, the fertilizer applied was up to 50.6 tons per square kilometer, far more than the 22.5-ton safety cap set by developed countries to prevent soil and water pollution. The consumption of agricultural plastic films has also increased on a yearly basis, with 2.173 million tons in 2010, an improvement of 41.2% compared to that of 2002.18 Because of overuse, chemical fertilizers and pesticides cannot be fully absorbed by crops and will eventually seep into the ground or water through domestic sewage pollution, thereby producing secondary pollution. In addition, nitrogen and hydrogen contained in livestock waste will also move into water, resulting in eutrophication. Some experts have estimated that industrial sewage, domestic sewage, and agricultural non-point source pollution are the three sources of nitrogen and phosphorus pollutants in China’s water bodies, and each has an equal effect. More than 50% of the nitrogen and hydrogen in China’s lakes came from rural non-point source pollution.19 Furthermore, most pesticides and insecticides infiltrate into water, soil, and farm products, contaminating up to 9.333 million hectares of farmland. They also contribute to the pollution of groundwater, and eco-environmental problems like eutrophication and air pollution.20

18  Relevant statistics come from China Rural Statistical Yearbook (2003 and 2011) (China Statistic Press). 19  Wang, Jianbin & Cheng Lei. The Analysis of the Current Situation of Agricultural Nonpoint sources pollution [J]. Journal of Jiangxi Agricultural University (Social Science Edition), 2008(3). 20  Jiang, Hongkun & Gao, Haiying, Zhang Qi. The Application of Best Management Practices for Agricultural Non-point sources pollution (BMPS) in China [J]. AgroEnvironment & Development, 2006(4).

80 

W. CHEN

1.3.2

 Threat to the Quality and Security of Farm Products Posed by A Agricultural Pollution In recent years, due to excessive use of chemical fertilizers and pesticides, untreated agricultural pollutants have been directly discharged into water bodies, posing a threat to food security and human health. According to the Ministry of Agriculture in 2005, an investigation of 3845 samples, including 52 kinds of vegetables across 37 cities, revealed that there were as many as 380 samples with pesticide residues above legal limits, with beans and vegetables having the top rate of pesticide residues. The main reason for excessive pesticide residues is the use of prohibited pesticides. If the residues enter the human body through food supply and thereby accumulate, this would create a tremendous threat to human lives and health.21 Thanks to strong effective supervision measures in recent years, the excessive pesticide residue rate has started to decline; however, there are still hidden dangers. Dangers like “poisonous rice”, “poisonous cowpea”, and pesticide poisoning occur occasionally because of the application of many forbidden, substandard, and fake pesticides. Direct discharging of agricultural pollutants into the main water supply results in serious eutrophication, gravely affecting drinking water security. The chemicals nitrogen and hydrogen as well as the pesticides accumulated in drinking water sources, particularly those in wells, pose a risk to people’s health. In addition, soil pollution could also enter into the human body through foods, such as grain, vegetables, fruits and meat, and thereby have a harmful impact on human health. 1.3.3

 egative Impacts on Economy Exerted by N Agricultural Pollution In recent years, China’s agricultural pollution has impacted the economy. The concerns about agricultural product quality and security greatly undermine China’s competitiveness in the market. Recently, due to pesticide and veterinary drug residues, heavy metal content, and other indicators exceeding the international trade limits, China’s agricultural product exports are frequently rejected, detained, and returned, which results in claims for indemnity as well as termination of contracts. Some farm products, the traditional primary source of foreign exchanges, have even lost access to the international market. After China’s entry into the WTO, the western developed countries are creating technological barriers for China’s 21  Liu, Guiping, Zhou, Yongchun, Fang, Yan, Shang, Qi & Chen, Jie. The Current Situation of China’s Agricultural Pollution and Its Countermeasures [J]. Studies in International Technology & Economy, 2006(4).

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

81

agricultural product exports, such as aquatic products, grain, poultry, vegetables, fruits, tea, and honey. This has a particular impact on China, causing consumers to lose confidence in agricultural production and markets. An unprecedented crisis of trust has emerged, which first impedes the agricultural development of China as a whole, and second, results in serious direct economic losses. Research on more than 2300 counties across China by the Soil and Fertilizer Research Institute of the Chinese Academy of Agro-Sciences found that an average direct economic loss of ¥650 per hectare over the past decade was caused by farmers’ overuse of fertilizers in vegetables, flowers, and fruits. Due to improper and unregulated application of fertilizers, as much as 15 million tons of nitrogen fertilizers did not enter farmland, and even for those applied in farmland almost half evaporated, which incurred a direct economic loss of up to ¥30 billion. Furthermore, the losses caused by pesticide waste exceeded ¥15 billion.22 Agricultural pollution also brought about economic losses to fisheries, animal husbandry, and tourism, and the indirect economic losses are more difficult to assess.23

2   The Construction of “Resource and Ecologically Sound Society” Requires a Transformation in Agricultural Development Since the CPC Central Committee announced that the construction of a “resource-conserving and environmentally friendly society” will be an important pivot to speed up the transformation of economic development mode, Chinese researchers have probed this concept and reached a primary consensus. A resource-conserving society refers to improving the efficiency of resource utilization and obtaining the largest economic and social benefits with the lowest cost of resources. Great efforts should be made to ensure harmony between economic and social development, the carrying capacity of resources and the environment, as well as the sustainable development of economy and society through appropriate and efficient resource allocation, resource recycling, effective protection, and replacement of resources. An eco-friendly society aims to protect the eco-­ environment and improve human residential conditions so that people  Ibid.  Fang, Yan & Chen, Jie. The Situation of Agricultural Pollution and Countermeasures [J]. Red Flag Manuscript, 2005(15). 22 23

82 

W. CHEN

and nature can co-exist in harmony. Its core value is to realize coordinated and sustainable development among manufacturing activity, consumption activity, and natural eco-systems.24 With the resource constraint becoming increasingly real, and the carrying capacity of the environment decreasing, urgent measures should be taken to transform China’s economic development mode. The essence of constructing a “resource and ecologically sound society” is to transform the current economic development mode. Agriculture, as the foundation of the national economy, provides the material basis for the existence and development of the whole society, and thereby constitutes one of the important sectors to be transformed. 2.1  The Transformation of Agricultural Development Is Inevitable for Constructing “Resource and Ecologically Sound Society” To build “a resource-conserving and environmentally friendly society” is a strategic decision for proactively dealing with the increasing resource and environmental constraints, and is also a strategic orientation for the transformation of the whole economic and social development mode of China. As an industry taking up the majority of China’s geographical spaces and employing the largest number of its people, agriculture is an industry relying heavily on natural resources and eco-environment, and in turn exerts enormous influence on both. China’s “resource and ecologically sound” economic and social development cannot not be materialized without the realization of “resource and ecologically sound” development in agriculture. Therefore, a series of demands and tasks are presented for the agricultural development mode as a natural result of the implementation of the construction of a “resource and ecologically sound society”. The overall goal of constructing a “resource and ecologically sound society” requires the transformation of the agricultural development mode to be integrated into the construction of a “resource and ecologically sound society”, and the coordinated development between industrialization, urbanization, 24  Cf. Using Resources in an Intensive Manner and Protecting the Eco-environment—the Practice and Thoughts of Constructing a Resource-conserving and Environment-friendly Society [N]. Economic Daily, 10-11-2007; Gao, Runbao, A General Analysis of the Construction of Two-oriented Society and the Development of Two-oriented Agriculture [A]. Thesis Collection on the Rise of Central China and the Development of Hubei’s Twooriented Agriculture (Typescript) [C], 2009.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

83

and agricultural modernization. It requires the “resource and ecologically sound” agricultural production system to be constructed based on the characteristics of agricultural resources and the environment; complete reliance on modern technology, equipment, techniques, and products; and the transformation of the utilization mode of resource factors. It is also required that China push forward its rural informatization, and speed up its transformation of socialized service systems in agriculture so as to ensure an intensive agricultural production mode featuring “low input, low consumption of resources, low environmental pollution, and high benefits”, as well as the optimization of economic, social, ecological, humanistic, and resource-conserving benefits. Consequently, to realize the integration of economic, social, and environmental benefits, China should push forward the transformation of agricultural development mode in line with the requirements of a “resource and ecologically sound society”, and interweave the latter concept into the agricultural development strategies. Currently, faced with global crises of energy and environment, people’s awareness of environmental protection has been increasingly enhanced, and green development has become a global trend. The United States, the European Union, Japan, and South Korea have already implemented elements of the “Green New Deal” to facilitate industrial restructuring and green economy. Circular agriculture, low-carbon agriculture, and other new concepts of eco-agriculture have arisen and gradually become the new direction of agriculture. In view of China’s condition of more people with less land, resource shortage and fragile environment, China’s agricultural development is facing unprecedented pressures from resources and the environment. The annual production of chemical fertilizers consumes up to 0.1 billion tons of standard coal every year, and its Sulphur consumption constitutes more than 70% of the total.25 China’s annual application of chemical fertilizers accounts for 30% of the world total, and its applications of pesticides per unit area are twice as high as that of developed nations. However, its utilization rates of chemical fertilizers and pesticides are only 30% and 40% respectively, half of those in developed nations. Every year, about 0.5 million tons of agricultural films are left in the soil, with the residual film rate up to 40%. The effective water use ratio in agriculture is only approximately 40%, much lower than the 70% to 80% in 25  Yang, Taibo. “Two-Oriented Agriculture” Is an Important Pivot of Transformation of Economic Development mode [J]. Qiu Shi, 2011(5).

84 

W. CHEN

developed European nations.26 China’s current agricultural development is typically represented as “high input, high consumption, high pollution, and low output”. In order to catch up with the global development trend, we need to break through the constraints of resources and the environment and realize sustainable agricultural development. It is urgent to take “resource and ecologically sound society” construction as an opportunity to form a new “resource and ecologically sound” agricultural development mode featuring “low input, low energy consumption, light pollution and high output”. Thereafter it is possible to realize the sustainable development of economy, society, ecology, and resources. 2.2  The Transformation of Agricultural Development Is Essential to the Construction of “Resource and Ecologically Sound Society” The construction of a “resource and ecologically sound society” requires accelerating the transformation of the economic development mode, especially the agricultural development, mode which is also the key point and the difficult part. China’s agricultural foundation is still weak, and needs to be strengthened; rural development is still lagging behind, and needs to be supported; the increase of farmers’ income is still a challenge, and needs to be accelerated; the development mode of agriculture is still backward, and needs to be transformed.27 In particular, China is seriously short of agricultural resources, and its agro-eco-environment is fragile. Among all industries in the national economy, agriculture is distinct because of its heavy dependence on natural resources. Therefore, the transformation of China’s agricultural development mode constitutes an important part of the construction of a “resource and ecologically sound society”, and plays a critical role in the realization of resource conservation and environmental protection. First, China’s agricultural development should transform from quantity-­ oriented production to the pursuit of both quality and quantity. As the economy develops, national living standards continue to improve. People 26  Jiang, Changyun. To Pave a Better Way for the Acceleration of Transformation of Agricultural Development mode [J]. China Development Observation, 2012(5). 27  Chen, Wensheng. A Breakthrough in the Transformation of National Economy Should Be Created from Issues Related to “agriculture, farmers, and rural areas” [N]. Guangming Daily, July 13, 2010.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

85

demand not only more diversified farm products but also higher quality. Consequently, to push forward the transformation of agricultural development requires not merely a solution to the current dilemma of resource consumption, extensive management, and heavy pollution, but also a faster move toward “resource and ecologically sound” agricultural development mode. Only when agricultural eco-environment is protected can the quality and security of farm products be guaranteed, the competitiveness and economic benefits of agricultural market be strengthened, and agricultural sustainable development be materialized. Second, China’s agricultural development needs to shift from being resource-intensive to being low-carbon and eco-friendly. China is currently facing a series of environmental problems such as the deteriorating eco-environment, the downward spiral of soil degradation, frequent agricultural disasters, the gradual reduction of biodiversity, and excessive consumption of agricultural resources. Current resources and environment cannot support the traditional agricultural development mode, and the production pattern cannot be maintained by the investment of large quantities of resources. In addition, the activities in agriculture itself also cause an enormous waste in resources and damage of the environment, such as reclaiming land from forests, pastures, and lakes; overfishing; overgrazing; and overuse of agricultural chemicals like chemical fertilizers and pesticides. Therefore, agriculture is high on the “resource and ecologically sound society” construction agenda for saving energy, decreasing consumption, and reducing emission of pollutants. An effective path of agricultural development should be followed by making full use of resources, protecting the environment, and developing “resource and ecologically sound” and energy-saving agriculture so as to realize maximum economic, social, and ecological benefits with the lowest resource consumption and environmental cost. Third, efforts should be made in China’s agricultural development to transform the traditional single-task agriculture to a modern multi-task form. For a very long time, agriculture had been solely considered as the source of food and clothing, providing only agricultural by-products. Due to the gradual improvement of social productivity, modern agriculture plays a much more important role than the traditional one. It yields social and economic benefits as well as significant ecological and environmental benefits. Especially in the context of global warming and the degradation of the eco-environment, agriculture’s ecological function will be increasingly emphasized. Currently, agriculture is not only an economic industry,

86 

W. CHEN

but also closely associated with territorial control, animal and plant protection, and ecological optimization. It is an ecological industry of great strategic significance. In consequence, in the process of industrialization and urbanization, efforts should be made to expand the ecological function of agriculture to alleviate and offset the damage to eco-environment posed by industrialization and urbanization. As a link integrating human society and nature, agriculture will undoubtedly facilitate their harmonious co-­ existence and realize eco-friendliness by its transformation and accordingly function as an important pivot for the construction of a “resource and ecologically sound society”. 2.3  The Construction of “Resource and Ecologically Sound Society” Provides the Strategic Orientation for the Transformation of Agricultural Development To push forward the transformation of agricultural development in the construction of a “resource and ecologically sound society” is to develop a sustainable agricultural development mode. This requires optimizing and upgrading the agricultural structure through technological advancement and a shift in its systems. Furthermore, it also necessitates appropriate utilization of agricultural resources and sustainable agricultural development. This pattern is supposed to be compatible with industrialization and urbanization, realizing intensive farming and a high degree of specialization to meet the multiple demands of resources, environment, economic growth, and an increase in farmers’ income. Sustainability-oriented: China’s agricultural resources are, to a large extent, deficient and there is a manifest contradiction between its population and land. Therefore, it is of great importance to China’s agricultural modernization and the food security of a populous nation to ensure sustainable agricultural development. A path to sustainable development featuring eco-environmental self-protection, recycling resources, and economic benefit ought to be taken, because future agricultural development must be able to feed an even larger population and maintain the development of a larger-scale economy through limited resources.28 28  Li, Ruifang. The Basic Characteristics of and New Demand for a Shift in Agricultural Development mode [J], Theory Research, 2009(28).

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

87

Efficiency-oriented: Efficient development means a higher output and realizing a development characterized by high quantity, high quality, and high benefits under the same constraints. China’s agricultural development is increasingly constrained by resources, which urgently requires it to have high-efficiency development so as to realize the country’s sustainable agricultural development. The key to efficient agricultural development lies in speeding up the scientific and technological innovation of agriculture, raising the rate of land yield, utilization of resources, and labor production. In other words, China has to take a path featuring high output, high quality, high efficiency, eco-friendliness, and security. Coordinated development-oriented: Under resource and environmental constraints, China’s agricultural transformation refers to the development against a more complex background. Efforts must first be made in the continual optimization of agricultural structure and promotion of its internal structure so as to realize successful transformation. Second, efforts must be made to accomplish coordination between agricultural and non-­ agricultural sectors and coherent integration between agriculture and other industries. With adequate coordination, rural economic development will be promoted and the speed of transferring the surplus rural workforce to non-agricultural sectors can be accelerated to bridge the urban—rural divide and realize common prosperity for both urban and rural regions. Third, to realize coordinated development between nature and ecology, efforts must be made to properly handle the relations between agricultural development, exploration, and utilization of natural resources, and eco-environmental protection. All-round development-oriented: China’s agricultural transformation has several tasks to fulfill. It should first place an emphasis on strengthening the comprehensive production capacity to increase the number of farm products. Second, it should pay attention to improving the quality of farm products and optimizing agricultural production structure so as to meet the demand for diverse farm products. Third, it is necessary to achieve ecological self-rehabilitation and environmental self-protection. Consequently, these changes should improve the living standard of urban-­ rural residents and the employment and income of farmers, and thus the all-round development of agriculture is achieved.

88 

W. CHEN

2.4  The Construction of “Resource and Ecologically Sound Society” Provides a Pivot and Guarantee for the Transformation of Agricultural Development The tricky question of the present era is to provide a new model and direction for China’s agricultural development in accelerating the transformation of agricultural development. The construction of a “resource and ecologically sound society” is not only the trend of global development, but also a significant strategic goal for China’s economic and social development. As a result, there is no doubt that “resource and ecologically sound society” construction will guide China’s agricultural development transformation by providing it with a guaranteed system and mechanism. First, the construction of a “resource and ecologically sound society” provides scientific concepts for the transformation of agricultural development. A shift in the agricultural development mode is an in-depth reform of agricultural development concepts. Concepts have an impact on actions, which means without the concept of “resource and ecologically sound development” there would be no practice of scientific and transformative development in agriculture. The scientific and transformative development of agriculture should take into account both the short-term economic benefits and the long-term ecological effects. It should respect both the economic laws and the rules of ecological balance. As a consequence, under the guidance of “resource and ecologically sound development” the push toward the development of productivity and ecology go hand in hand, and we should bear in mind the concept that to save resources is to raise agricultural productivity, and to protect the eco-environment is to protect agricultural productivity. Second, the construction of a “resource and ecologically sound society” provides technological support for the transformative development of agriculture. Technological innovation serves as an important impetus for the transformation of the industrial development mode. The realization of agricultural development transformation cannot be achieved without current resource-conserving and eco-friendly agricultural technologies. Therefore, in order to accelerate the transformation of agricultural development, efforts should be made to promote agricultural technologies in alignment with the requirements of building a “resource and ecologically sound society”. Based on the differences among regions, varieties, and planting methods, the regulation of formula fertilization by soil testing should be enacted to enhance the utilization rate of chemical fertilizers

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

89

and reduce their application as much as possible. Efforts should be made to promote the application of less toxic and low-residue pesticides as well as new types of equipment to decrease pesticide application as much as possible. Efforts should also be made to expand the application of all kinds of water-saving irrigation techniques, thereby improving the utilization rate of agricultural water use. Furthermore, it is important to promote the application of land fertilization and protective tillage techniques, and to develop low-consumption facility agriculture so as to enhance the efficiency of comprehensive output of farmland.29 Third, the construction of a “resource and ecologically sound society” provides an institutional guarantee system for transformative development in agriculture. Only in a sound system can the transformation of agricultural development be conducted in an orderly and steady way. The institutional framework of a “resource and ecologically sound society” consists of planning acts, laws, and regulations; policy supporting systems; performance appraisal systems; and administrative management systems regarding the promotion of agricultural development mode. It also incorporates agricultural supervision management, agro-technology standards and regulations, as well as enforcement and monitoring systems in terms of “resource and ecologically sound” production. These provide the institutional guarantee for transformative development in agriculture. Fourth, the construction of a “resource and ecologically sound society” provides a mechanism guarantee for transformative development in agriculture. The transformation of the agricultural development mode not only requires the market to bring its role in resource allocation into full play, but also the government to play a promotional role in regulation and control to the greatest possible extent, so as to remove dependence on the traditional path. The goal of building a “resource and ecologically sound society” is to establish a price system that could mirror the degree of scarcity of agricultural resources and bring the critical role of market in the deployment of agricultural resources into full play. This would optimize the allocation of agricultural resources and factors, and guide agricultural development in the “resource and ecologically sound” direction through macro-level regulation, formulating and implementing agricultural development plans and industrial policies centering on resource conservation 29  Du, Xunchang & Yan, Mingqing. A Great Effort Should Be Made in Developing the Modern Agriculture for the Goal of Constructing a “Resource and Ecologically Sound Society”, People’s Daily [N], February 23, 2009.

90 

W. CHEN

and environmental protection, as well as pushing forward a series of reforms in prices, tax, and finance so as to achieve resource-conserving and eco-friendly agricultural development. Efforts should be made to create an ecological compensation mechanism that could ensure that agricultural development is a “resource and ecologically sound” one, to strengthen the implementation of agricultural environmental protection and the standardization of agricultural production, to advocate a change in the production and living patterns of farmers to a resource-conserving and eco-friendly one, and to thus form an institutional guarantee for pushing forward agricultural transformative development.

3   The Strategic Direction for the Transformation of China’s Agricultural Development: “Resource and Ecologically Sound Agriculture” Building resource-conserving and eco-friendly agriculture, which is compatible with a “resource and ecologically sound society”, is an urgent demand for mitigating the resource and environmental constraints faced by China’s agriculture and for improving the rural eco-environment. Also, it is the effective approach to realize sustainable agricultural development, an inevitable choice for accelerating the transformation of China’s agricultural development mode, as well as a strategic direction for transformation. 3.1   The Proposal of “Resource and Ecologically Sound Agriculture” More than 30 years of reform and opening-up have witnessed impressive achievement in China’s agricultural development, but the country’s large population has created a strong demand for an effective supply of farm products. Consequently, common farming practices tend to focus on short-term benefits while neglecting the long term, such as achieving a one-time fast growth of crops at the cost of resources and the environment. This has brought about resource, environmental, ecological, and climate crises, which are manifested in sharp contradictions and conflicts between agricultural production, resources, and the environment, posing a severe threat to sustainable development. The transformation of the agricultural development mode must occur in parallel to respecting natural principles, realizing the dual objectives of eco-environmental

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

91

protection, providing an effective supply of farm products, and advancing the co-existence of human beings and nature. Agricultural production is both a natural and economic reproduction process, an economic activity involving resources, capital, technology, labor, and other factors of production, among which resources and the environment serve as the necessary basis and prerequisites for the development of production. As a populous country, China’s scarcity of agricultural resources is unique. To ensure the sustainable development of agricultural production and the whole society, it is necessary to rationally develop and utilize the eco-environment and resources so as to realize recycling and sustainability. In this way, China can meet the current needs of its society and those of others in the future. Resolving the difficulty of ecological imbalance and achieving the sustainable development of resources requires a new agricultural development mode. With the accelerated transformation of Chinese society, the social subjects in the process of industrialization and urbanization pin more hopes on agricultural development, expecting agriculture to bear more innovative functions and shoulder more social responsibilities. For this to happen, the agricultural industry must offset its negative economic and environmental effects, and become a carrier and promoter of Chinese traditional culture with the aim of enabling its national culture to play the roles of social culture leader, social progress booster, and national soft power in international competition. At the same time, the fourth technological revolution led by new energy and biotechnology is burgeoning, and the whole world is being transformed from an era of knowledge economy to an era of bio-economy. Agriculture, as an important carrier of biotechnology, is the raw material source of biomedicine, bioindustry, and biomass energy. It is also the necessary foundation for new energy industry and bioindustry. To live up to the expectations of modern society for agriculture in the era of bio-economy requires a revolutionary reform in agricultural development. Therefore, the Third Plenary Session of the 17th CPC Central Committee reached the conclusion that, “in the context of an extensive agricultural development mode with backward infrastructures and technical equipment, the fast disappearing farmland, increasing constraints of population, resources and the environment, more and more severe climate changes, frequent occurrences of natural disasters, harsher contradictions between demand for and supply of international grains, and an increasing pressure on safeguarding national food security and the balance between

92 

W. CHEN

demand for and supply of staple farm products”,30 efforts should be made to construct a resource-conserving and eco-friendly society, transforming the agricultural development mode to a sustainable one. That is to say, we must replace the current pattern featuring “high input, high energy consumption, heavy pollution and low output” with “low input, low energy consumption, light pollution and high output”.31 The following statement also put this clearly: “…efforts should be made to build a resource-­ conserving and environmentally friendly agricultural production system and by 2020 the establishment of the whole system should be basically completed”. It urged an emphasis on and strengthening of resource conservation and environmental protection, and to pay equal attention to them in every process of agricultural production and every field with respect to agriculture.32 China, a country with an agricultural foundation, has witnessed its agriculture being transformed from primitive agriculture to traditional agriculture, and then modern agriculture over thousands of years. However, China is currently a developing nation, which means it cannot gain an edge over developed nations in terms of modern agriculture, which relies heavily on industrialization and is not sustainable. The best option is thus to develop “resource and ecologically sound agriculture”. China’s agriculture has not completed its industrialization and modernization, which is regarded as a weakness by many around the world; yet, it is in fact an advantage in disguise. China could learn from modern agriculture, while on the other hand it could also take advantage of the wisdom and methods embedded in traditional farming. Therefore, the past mistakes and detours by other nations would not be repeated and “corner overtaking” could be achieved. With its progress in industrialization, informatization, urbanization, marketization, and internationalization, China’s overall development could enter a new stage where industry promotes agriculture, while urban areas support rural development, and bestow upon agricultural development the best fundamentals, chances, and basic conditions to prosper. Understandably, it is necessary and possible for China’s agricultural 30  Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Advancing the Rural Reform [M]. Beijing: People’s Publishing House, 2008. 31  Xu, Qi. Four Measures to Build an Environmentally friendly Society. [N] China Environment News, September 15, 2015. 32  Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Advancing the Rural Reform [N]. People’s Daily, October 20, 2008.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

93

development to leapfrog over the paradigm of industrial modern agriculture, and enter into “resource and ecologically sound agriculture” directly. This could develop agriculture with Chinese characteristics, and also set an example for other developing nations. 3.2  The Essentials of “Resource and Ecologically Sound Agriculture” “Resource and ecologically sound agriculture” refers to a resource-­ conserving and eco-friendly agriculture, a concept derived from the construction of a “resource and ecologically sound society”, which reflects the requirements of the era and social expectations for agricultural development in such a society. It is a new concept and a new model of agricultural development in accordance with a “resource and ecologically sound society”. So far, there is no theoretical consensus on the concept and essentials of “resource and ecologically sound agriculture”, and most scholars have based their research on the theories of sustainable development, post-­ modernism, circular economy, green consumption, and development economics. From the perspective of agricultural development itself, “resource and ecologically sound agriculture” is an overarching concept, a production system including agriculture, forestry, husbandry, sideline production, and fisheries. “Resource and ecologically sound agriculture” does not include the previous practices of reclaiming lands from forests and lakes, centering on taking grain as the key link and developing farming at the cost of forestry, fisheries, and eco-environment. “Resource and ecologically sound agriculture” is an agricultural system with a modern value chain framework including producing, processing, and sales, which increases market efficiency and the competitiveness of farm products through the extension of the system. “Resource and ecologically sound agriculture” features high tech, low cost and high efficiency, and it incorporates operating systems, organizational systems, and technological systems. In accordance with the directives of the Third Plenary Session of the 17th CPC Central Committee, “resource and ecologically sound agriculture” constitutes an important part of a “resource and ecologically sound society”, and is a concrete practice of a “resource and ecologically sound society” in the field of agricultural development. The essential aim of “resource and ecologically sound agriculture” is building a new modern

94 

W. CHEN

agricultural system aiming at the improvement of resource utilization efficiency and eco-environmental protection by transforming the agricultural development mode. Specifically, great efforts should be made to develop an agriculture focusing on resource conservation and environmental protection, and to advance agriculture in the direction of building a comprehensive production system that can realize sustainable development with the transformation of an agricultural development mode as its fundamental basis; the development of modern agriculture featuring high quality, high output, high benefits, ecology, and security as its main purpose; conservation of land, water, fertilizers, pesticide, seeds, energy, and comprehensive cyclic utilization of resources and eco-environmental protection of agriculture as its focus; and technological and policy innovation as its pivots.33 In short, the aim is to maximize the conservation of agricultural production factors and to minimize the external negative effects of agricultural production. Therefore, “resource and ecologically sound agriculture” involves two closely linked aspects: resource conservation and eco-friendliness. However, the two aspects are not simply added together, but reciprocally causal and mutually promoting to form an organic whole.34 The integration of resource conservation and environmental protection constitutes the entire content of “resource and ecologically sound agriculture”. “Resource-conserving agriculture” refers to saving natural resources and agricultural production factors, with the improvement of resource utilization efficiency at its core. It also refers to upgrading farming methods, promoting the development of stereoscopic agriculture, and adopting advanced irrigation systems and techniques and scientific fertilization systems so as to realize intensive agriculture that could save time, land, water, and energy and produce high benefits with low consumption.35 “Eco-­ friendly agriculture” refers to scientifically applying pesticides, chemical fertilizers, and plastic films, while advancing technological innovations in farming and breeding within the carrying capacity of the environment, as well as the developmental framework for a harmonious co-existence  Ibid.  Qi, Zhenbiao, Qi, Ji and Zhou, Hui. Connotation and Characteristics of ResourceSaving and Environmentally Friendly Agriculture Production System [J] Research of Agricultural Modernization, 2012 (03). 35  Peng, Xinyu. Path Selection and Institutional Innovation for the Construction of “Twooriented Society” in Hunan Rural Areas [J]. Social Sciences in Hunan, 2011(4). 33 34

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

95

between humans and nature.36 It can thus realize hazard-free agricultural production and the reuse of agricultural wastes.37 Hence “resource and ecologically sound agriculture” has rich content. Its core is to resolve the serious contradictions between production and resources as well as the environment with great efforts. “Resource and ecologically sound agriculture” respects the laws of nature and economic development, while continuously decreasing the negative effects of agricultural production on resources and the environment in a bid to realize a virtuous cycle of economy, society, and the environment. It is a renewed recognition of agricultural development principles in the new stage of China’s agricultural development, a new path to and a new direction for the modern transformation of agricultural development in a populous nation. In addition, realizing low-carbon development in agriculture is essential to “resource and ecologically sound agriculture”. “Resource and ecologically sound agriculture” fully takes into account the scarcity of agricultural resources and the carrying capacity of the eco-environment. It also follows principles of low consumption, low pollution, reuse, and recycling, and integrates the resource-conserving and eco-friendly development mode to the fullest. It can on the one hand progressively improve the input-output efficiency of resources and reduce the negative effects on environment, and on the other hand gradually increase the output and quality of farm products. Also, with more and more ecological civilization establishments, such as ecological landscape, cultural recreation, and liberal arts education, “resource and ecologically sound agriculture” is exerting more and more multi-functional effects on ecological civilization. “Resource and ecologically sound agriculture” is a transformation in the development paradigm, representing a new agricultural development mode and concept. Finally, the fundamental objective of “resource and ecologically sound agriculture” is to transform the agricultural development mode. The traditional agricultural development mode separates production from consumption, resulting in serious resource and environmental problems like “mass production, mass consumption, and mass waste”. “Resource and ecologically sound agriculture” tackles this problem by integrating resource consumption and emission of wastes, placing an emphasis on the  Ibid.  Ibid.

36 37

96 

W. CHEN

reduction, reuse, and recycling of production and consumption, in an attempt to achieve maximum economic, social, and environmental benefits at the least cost to resources and the environment. It is a total reform of the development mode.38 In general, the achievement of these objectives is an important reflection of “resource and ecologically sound agriculture”, which is in alignment with both the major tasks of ecological civilization construction and the trend of low carbon development in the present era. Thus, “resource and ecologically sound agriculture” is a new agricultural development system producing economic, social, and environmental benefits,39 the forefront of agricultural modernization, and the direction of human sustainable development. 3.3  The Basic Features of “Resource and Ecologically Sound Agriculture” The development mode of “resource and ecologically sound agriculture” integrates humans and their lives into the ecological cycle of agriculture, viewing the mutual interaction between agricultural production structure and human social structure as a dynamic system of diverse inherent organic relations, focusing on ecological cycle and comprehensive coordination. The basic features of this development mode are high-tech, high-quality, and safe products, low resource and energy consumption, low emissions, and high benefits. It involves core agricultural technologies and innovations, having a crucial bearing on seizing the high ground of agricultural development. This is specifically reflected in the following aspects: 3.3.1 Eco-Friendly Production Process The reasonable application of chemical fertilizers and pesticides in “resource and ecologically sound agriculture” effectively resolves the problems of chemical, pesticide, and veterinary medicine residues in farm products, ultra-low heavy metal limits, and environmental damage. This not only ensures that the production process can be completed in an eco-­ friendly way, but also that farm products meet safety standards.

 Ibid.   Kuang, Yuanpei & Li Fei. Dynamic Mechanism of Two-oriented Agricultural Development [J]. Agricultural Economics and Management, 2011(03). 38 39

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

97

3.3.2 High Quality To increase production is not the first priority of “resource and ecologically sound agriculture”. In contrast to the emphasis on production, “resource and ecologically sound agriculture” focuses more on nutritional value and whether the products can improve human health. Therefore, the desired products are ecological, green, and highly nutritional. 3.3.3 Low Development Costs “Resource and ecologically sound agriculture”, which consumes fewer resources and energy and emits fewer pollutants, could develop at low economic and social costs. It is conducive to both the healthy growth of the national economy and sustainable agricultural development itself. 3.3.4 High Market Benefits The products of “resource and ecologically sound agriculture” possess both high quality and nutritional values. They are technology- and knowledge-­intensive, and rich in technological content, cultural connotations, and regional characteristics. Being high value-added, these products will occupy an advantageous place in the market and deliver good market benefits. “Resource and ecologically sound agriculture” abandons the previous method of boosting production of farm products by increasing capital input and the wide application of chemical fertilizers and pesticides. It consciously makes use of the self-corrective capacity of nature to improve nutrient cycling, and coordinates the mutual interaction between crops, soil, animals, plants, and other organisms, so that the resources can be recycled to protect the healthy development of the environment. Developing “resource and ecologically sound agriculture” is thus an urgent requirement for realizing agricultural sustainable development, while also increasing farmers’ income and completing China’s agricultural modernization. It is the modern path to develop healthy agriculture that is “high quality, efficient, green, and safe”. 3.4  “Resource and Ecologically Sound Agriculture” versus Traditional Agriculture China’s traditional farming technique embodies “resource and ecologically sound” characteristics, credited globally as “zero-waste agriculture”, and is in alignment with “resource and ecologically sound agriculture” to

98 

W. CHEN

some extent. Franklin H.  King, Director of the U.S.  Department of Agriculture Bureau of Land Management from 1902 to 1904, praised highly China’s traditional agriculture after he investigated China’s agriculture in 1911. He claimed that traditional Chinese agriculture could be called organic agriculture since it used human and animal excreta, pond sludge, and other wastes to fertilize soil, which was conducive to sustainable human development.40 Albert Howard, a British mycologist, heavily influenced by King, advocated for strengthening the land along with increasing agricultural production, the relations between soil fertility enhancement, animal and plant production, and plant and animal pest control, and highlighted that human health should be taken into account. He argued that only with fertile soil could plants and animals have robust growth and stay free from pests. Howard also believed that the reason for China’s ability to sustain a large population without reducing its soil fertility for a long time was its close association with farmers’ application of waste-converted fertilizers in the farmland.41 For thousands of years, China has been keeping historical record of a gradual improvement of land utilization efficiency and production efficiency, which has led to sustaining soil fertility for the most part. The more farmland is cultivated, the more fertile farmland becomes, which could be regarded as a miracle in human agricultural history. It is this so-called backward traditional agriculture that meets the demand created by China’s rapid population increase from more than 20 million in the Warring States period (475–221 BC)42 to about 0.3 or 0.4 billion prior to the Opium Wars (1839–1860),43 and feeds more than 20% of the global population with less than 7% of the world’s farmland to date. “This miracle is created by traditional

40  King, Franklin H. Cunwang Cheng & Yan Shi (Trans.). Farmers of Forty Centuries: Or Permanent Agriculture in China, Korea and Japan. [M] Beijing: Oriental Press, 2011. 41  Chen Shengming & Lu Guoquan. Organic Agriculture and Food Security [M]. Beijing: Chemical Industry Press, 2006. 42  The Warring States Period (475–221 BC) was an era of division in ancient China, when various states were at war before the Qin state conquered them all, and China was reunited under the Qin Dynasty. 43  There were two opium wars fought between the Qing dynasty, which ruled China from 1644 to 1911, and the forces of western countries. The first Opium War (1839–42) was fought between China and Britain, and the second (1856–60) by Britain and France against China.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

99

agriculture, and if we discard this valuable tradition without a reason, it is no doubt that China’s agricultural development will ‘become baseless’”.44 However, traditional agriculture usually aims at maximizing production and economic benefits, eliminating the carrying capacity of resources and the environment. It exploits natural resources to the limit for the maximum output, resulting in conflicts between agricultural development and resources as well as the environment. “Resource and ecologically sound agriculture” takes into account the limitation of resources and the carrying capacity of the eco-environment to the fullest, and makes every possible effort to save resources and to protect the environment. Instead of setting high output as the only goal of agricultural development, “resource and ecologically sound agriculture” pursues economic development, environmental protection, resource development, and sustainable development. It makes the greatest effort to reduce resource input, to reuse wastes so as to realize resource recycling, and to reduce the loss of resources and the environment with the aim of developing into an agricultural development mode that is compatible with the carrying capacity of resources and the environment.45 Therefore, to develop “resource and ecologically sound agriculture” is not to completely negate the traditional agricultural production system, or disregard the vitality of China’s traditional agriculture over thousands of years. Instead, it is to treasure, inherit, and carry forward its advantages and essence, so that “resource and ecologically sound agriculture” will be closely linked to traditional agriculture. Although traditional agriculture has the disadvantages of small scale, simple structure, backward management and technology, vulnerability to natural hazards, and weak ecological function and market competitiveness, its emphasis on intensive farming, wide application of organic fertilizers, construction of water irrigation, promotion of crop rotation and double cropping, and the integration of agriculture, forestry, husbandry, sideline production, and fisheries constitutes the prototype of “resource and ecologically sound agriculture”. To sum up, “resource and ecologically sound agriculture” bases itself on the wisdom of traditional agriculture, such as intensive farming, land 44   Wang, Zhihe. Post-modern Philosophical Thoughts on Agriculture and Rural Development [J]. Philosophical Trends, 2010(4). 45  Ibid.

100 

W. CHEN

cultivation through land use, and biological pest control, while at the same time overcoming the limitations of traditional agriculture with the help of modern sci-tech. Applying biotechnology, information technology, materials technology, and engineering, “resource and ecologically sound agriculture” expands new functions and fields for agriculture with less resource consumption and provides rich and high-quality farm products. It thus upgrades traditional agriculture and makes sustainable development a reality. 3.5  “Resource and Ecologically Sound Agriculture” and Industrialized Modern Agriculture After World War II, faced with the pressure of a rapidly increasing demand for grain exerted by the population boom, countries around the world were exploring ways to realize agricultural transformation to increase grain production and reduce hunger. After the world entered the industrial revolution, the prices of agricultural production factors surged. Under these conditions, the western developed nations, especially the United States, one after another established oil-based industrialized modern agriculture. Fueled by a large number of petroleum products, this created a miracle spike in production and productivity through excessive application of chemical fertilizers, pesticides, agricultural films, and other chemicals, alleviating the serious contradictions between a surging population and the grain demand, and easing the tension in global grain supply. This agriculture featured high input, high output, and mechanization and made a great contribution to global agricultural development.46 However, the price paid by the environment was very high, with the loss of vegetation, species, and farmland caused by land reclamation, as well as the damage to species diversity because of overapplication of pesticides and chemical fertilizers. These resulted in increasingly serious issues like environmental pollution, high consumption, and high cost, especially when global agriculture created large amounts of greenhouse gas exceeding previous total greenhouse gas emissions by 30% (approximately 15 billion tons of co2), and this became one of the causes of global warming.47

 Ibid.  Chen, Qingxiu. Modern Agriculture Relies on Low Carbon [N]. People’s Daily, October 25, 2010. 46 47

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

101

The Chinese-American scholar Zhihe Wang provides a vivid description based on the statistics by the United States Soil and Water Conservation Bureau: If we fit annual topsoil loss in the United States into train cars, this train would be 18 times longer than the equator.48 Wang advocated in his book Second Enlightenment49 that “land is the foundation of agriculture, and fertile land is a permanent wealth for human beings. However, industrialized modern agriculture exploited lands endlessly and crazily like a prodigal son, which could be evidenced by excessive application of chemical fertilizers and pesticides in terms of technology, the unselective usage of powerful farming machines in terms of machinery, the barbaric adoption of continuous cropping in terms of time, the unreasonable application of single variety in terms of space. As a result, the land could only give vent to its anger by horrendous topsoil loss and sharp decline in its fertility”. In Taiwan, influenced by industrialized modern agriculture, 90% of farmland soils were damaged in the last two decades of the twentieth century, which was represented by the decrease of soil quality and an increase of toxicity. Some farmland even lay fallow because of serious pollution.50 India faces a more severe problem. Since the beginning of the 1970s, “one third of Indian lands became barren because of the adoption of industrialized modern agriculture. Punjab, once credited as the granary of India, now sees half of its land lie barren, causing 60% of its children to be experiencing the torture of malnutrition”.51 Silent Spring, written by Rachel Carson in 1962, states that in order to pursue profit and production American industrialized modern agriculture abused the application of pesticides: “It was a spring without voices. On the mornings that had once throbbed with the dawn chorus of bird voices, there was now no sound; only silence lay over the fields and woods and marsh”. Carson believed that because of industrialized modern agriculture, human habitats are damaged, and species are disappearing gradually, which will eventually leave human beings alone. This moment might spell the end of the human race. Carson warned that if we do not eliminate the 48  Yu, Yongyue & Wang, Zhihe. Sustainable-Permanent Agriculture Contemporary West and Constructive Postmodernism. [J] Marxism & Reality, 2008 (05). 49  Wang, Zhihe & Fan, Meijun. Second Enlightenment [M]. Beijing: Peking University Press, 2011. 50  Cheng, Zhen & Zeng, Yurong. Analyses and Comments on the Development Objective and Measures of Taiwan’s Sustainable-Permanent Agriculture [J]. Taiwan Agricultural Research, 1999(01). 51  Ibid.

102 

W. CHEN

ecological damage of modern agriculture, human beings will reap what they sow, and suffer a devastating disaster. Therefore, it is time to abandon our blind faith in industrialized modern agriculture, and we need a new mindset and a new agricultural development mode.52 Fortunately, China has learned from the serious mistakes of the West and chosen to develop “resource and ecologically sound agriculture”, which outpaces western industrialized modern agriculture and adapts better to China’s national conditions.53 It is a difficult decision, yet imperative and strategic. To develop “resource and ecologically sound agriculture” is definitely to turn away from industrialized modern agriculture and “petrochemical agriculture”, but it is also not necessary to return to “slash-and-burn farming” or “agriculture with zero pollution”. After all, it is not realistic to revert to a pre-modern agricultural society. “Resource and ecologically sound agriculture” is not to negate modern agriculture, but to transcend it at a higher level. As a new type of agriculture featuring “low input, low consumption, low pollution, and high output”, “resource and ecologically sound agriculture” differs from western industrialized agriculture, and makes full use of modern sci-tech, thus enriching agricultural modernization. Industrialized modern agriculture puts economic development and GDP high on the agenda and regards rapid prosperity as its primary goal. In contrast, “resource and ecologically sound agriculture” gives first priority to people’s happiness, placing an emphasis on the harmonious co-­ existence between humans and nature, and its fundamental purpose of development is to advance the common development and prosperity of human beings and nature. If industrialized modern agriculture takes agricultural production as a mechanical process, “resource and ecologically sound agriculture” regards agricultural production as a development process jointly created by humans and nature.54

52  Carson Rachel, Translated by Lü, Ruilan, Changsheng Li. Silent Spring [M]. Jilin People’s Publishing House, 1997. 53   Wang, Zhihe. “resource and ecologically sound” Countryside and Post-Modern Agriculture [A], in Rural Development Institute of Hunan Academy of Social Sciences and Changsha Academy of Social Sciences (Eds), Proceedings of the International Symposium on the Development of Rural and Ecoagriculture [C]. Changsha, Hunan Province, China, 2009 (11). 54  Ibid.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

103

3.6  Relations Among “Resource and Ecologically Sound Agriculture”, Low-Carbon Agriculture, Circular Agriculture, and Eco-Agriculture In the last 30 years, industrialized modern agriculture has brought about increasingly serious problems, among which resource depletion, environmental degradation, and frequent natural disasters have received extensive attention. Even worse, these problems have led to worldwide energy, environmental, ecological, and climate crises. In order to discover an agricultural development mode different from industrialized modern agriculture, the western developed nations have been exploring methods of sustainable agricultural development and have proposed various “post-modern agricultures”, such as low-carbon agriculture, circular agriculture, eco-­ agriculture, organic agriculture, intensive agriculture, precision agriculture, and conservation-oriented agriculture. Although these are all different concepts, they are essentially intended for solving the problems of industrialized modern agriculture and seeking a new development mode,55 for which all could be regarded as alternatives to industrialized modern agriculture. They are defined as “combining the wisdoms of traditional agriculture with modern technology to produce healthy food, so that people could enjoy a better life and realize their dreams”. Theoretically, they are required to be “operated and managed in accordance with principles of ecology, economics, and ecological economics, highlighting the ecological guidance of agricultural development”. They are targeted to achieve the combination of natural and artificial regulation, pursue harmony between humans and nature rather than confrontation between them, and to realize the sustainability of species and culture.56 Low-carbon agriculture, eco-­ agriculture, and circular agriculture are the most representative, and are associated with, but also different from, “resource and ecologically sound agriculture” (see Table 3.2). Low-carbon agriculture applies the concept of low-carbon economic development to agricultural production, which centers on greenhouse gas emission reduction and features low energy consumption, low emissions, and low pollution. It implements technological reform and institutional innovation to ensure ample grain supply at present and in the future. Low-­ carbon agriculture stresses reducing reliance on fossil fuels, which  Ibid.  Dong, Hui. Post-modern Agriculture Is Practicable [J]. Marxism & Reality, 2008(05).

55 56

104 

W. CHEN

Table 3.2  Comparison between “resource and ecologically sound agriculture” and low-carbon, ecological, and circular agriculture Agricultural development types

“Resource and ecologically sound agriculture”

Low-carbon agriculture

Core concepts

Accelerating the transformation of the agricultural development mode Integration and generalization of various agricultural types

Reduce greenhouse Balance Recycle gas emission ecological system

Relative status

Both ecological and circular agriculture require “low emissions”. Thus, low-carbon agriculture is a sublimation of the existing mode

Eco-agriculture

Agricultural Resource characteristics conservation and eco-friendly

Low energy and material consumption, low emissions and pollution, high efficiency and benefits

Supporting System theory system Development Sustainable objectives agricultural development Development The common focus development of resource and environmental protection

System theory

Low-level material cycle; low use ratio of materials, especially agricultural waste; reflects the concept of circular agriculture Organize agricultural production according to systemic thought; respect principles of ecological economics System theory

Sustainable agricultural development Resource-­ conserving

Sustainable agricultural development Environmental protection

Circular agriculture

Advanced eco-agriculture. Embraces the content of eco-agriculture, an important representation of eco-agriculture

Sustainable agricultural development Resource-­ conserving

Take “3r (reduction, reuse, recycling)” as basic principles

System theory

(continued)

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

105

Table 3.2 (continued) Agricultural development types

“Resource and ecologically sound agriculture”

Development Inclusive and space not limited to certain specific agricultural production type Production Diversified, all mode kinds of agricultural production modes included

Low-carbon agriculture

Eco-agriculture

Circular agriculture

Subject to time and Subject to time location constraints and location constraints

Subject to time and location constraints

Input-reduction-­ oriented agricultural production mode (reduction-oriented production, circular production), the agricultural production mode focusing on increasing carbon through carbon sequestration (the mode of carbon increase through carbon sequestration in forest lands, the mode of carbon increase through carbon sequestration in farmland), low-carbon rural reconstruction mode (low-carbon recreation mode, biogas and other new energy production modes)

Biomass recycling; three-­ dimensional compound production; comprehensive improvement of eco-­ environment

three-­ dimensional land development; integrated river basin development; courtyard ecological production; soil and water conservation; coordinated use of livestock, poultry, and farmland; compound production of farming, forestry, and animal husbandry

(continued)

106 

W. CHEN

Table 3.2 (continued) Agricultural development types

“Resource and ecologically sound agriculture”

Low-carbon agriculture

Eco-agriculture

Circular agriculture

Resource utilization

Utilize resource flexibly in accordance with agricultural development direction and on a case-by-­ case basis

Limit the use of pesticides, chemical fertilizers, and agricultural machinery

Proper use of pesticides and fertilizers; pro-agricultural machinery

Limit the use of pesticides, chemical fertilizers; pro-agricultural machinery

resembles “the two low features” of “resource and ecologically sound agriculture”, namely, low input of material energy and low emission of pollutants.57 Accordingly, low-carbon agriculture belongs to “resource and ecologically sound agriculture”. Eco-agriculture features self-sufficiency and low input and can be viewed in terms of an ecological system. It has a vibrant economic system and is aligned with respect to ecology, ethics, and aesthetics. It requires a respect for the laws of nature and ecology, and is characterized mainly by material cycle and energy transformation between organisms and the environment so as to establish a system of ecological balance between relevant species and the environment in terms of agricultural production and development. Thus, the material cycle and energy transformation are completed, self-maintenance and self-regulation in the agricultural ecological process realized, rational and sustainable use of the resources ensured, and at last environmental degradation prevented.58 Similar to 57  Huang, Guoqin & Qiguo, Zhao. Low-carbon Economy, Low-carbon Agriculture and Low-carbon Crop Production [J]. Journal of Jiangxi Agricultural University (Social Sciences Edition), 2011(01). 58  Li, Zhimeng. Ecoagriculture Is an Effective Way to Develop Rural Eco-Efficient Economy [A], in Rural Development Institute of Hunan Academy of Social Sciences and Changsha Academy of Social Sciences (Eds), Proceedings of the International Symposium on the Development of Rural and Ecoagriculture [C]. Changsha, Hunan Province, China, 2009 (11).

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

107

eco-agriculture, taking a coordinated development between ecological system and human economic system as its focus, “resource and ecologically sound agriculture” features essentially the harmonious development between humans and nature. Accordingly, eco-agriculture belongs to “resource and ecologically sound agriculture”. Circular agriculture is the practice of circular economics in an agricultural system with reduction, reuse, and recycling as its basic principles and multi-stage reuse of agricultural resources as its basic feature. It attempts to build the “resource-product-renewable resource” recycling process in the agricultural production system, so that the upstream waste would serve as the raw material for the downstream production, thus reducing resource consumption and easing the pressure on the eco-environment. In doing so, low input, low emissions, and high utilization efficiency of resources in agricultural production would be achieved.59 In short, high utilization efficiency and low resource consumption, the features of circular agriculture, completely comply with saving the factors of production of agriculture to the fullest and reducing the negative externality of agricultural production to the greatest extent possible, the development requirements of “resource and ecologically sound agriculture”. Accordingly, circular agriculture belongs to “resource and ecologically sound agriculture”. In summary, low-carbon agriculture, eco-agriculture, and circular agriculture are the main practices of “resource and ecologically sound agriculture” in spite of their different focuses. For example, low-carbon and circular agriculture emphasize the reduction of resource consumption, reuse, and resource recycling60 with the improvement of utilization and conservation rate of resources at its heart, while eco-agriculture places an emphasis on developing agriculture abiding by natural laws with improving eco-environment at its core. However, all three stress that agricultural development should be coordinated with resources and the environment to achieve the virtuous circle of ecology, economy, and society as well as the integration of ecological, economic, and social benefits. All aforementioned development types are the essential requirements of “resource and ecologically sound agriculture” and all are transformations of the traditional agricultural development mode. Confronted with increasingly 59  Yin, Changbin, Yin Zhou and Lihua Liu. Theory and Practice of Recycle Agriculture in China [J]. Chinese Journal of Ecoagriculture, 2013(01). 60  Ibid.

108 

W. CHEN

severe resource constraints, “resource and ecologically sound agriculture” employs the theory of sustainability to guide agricultural and rural development and innovate agricultural production concepts. Moreover, it applies gene technology and information technology to simulate growth and the development process, thus realizing agro-technological innovation through a multi-disciplinary system. However, the concepts of low-carbon, ecological, and circular agriculture are different from “resource and ecologically sound agriculture”, and they are not the equivalents of “resource and ecologically sound agriculture”. Moreover, there are distinct differences between them. 3.6.1 “Resource and Ecologically Sound Agriculture” Is Inclusive “Resource and ecologically sound agriculture” is an intensive integration of low-carbon, ecological, and circular agriculture. In terms of agricultural development, low-carbon agriculture and circular agriculture emphasize resource conservation, and eco-agriculture emphasizes environmental protection, whereas the core concept of “resource and ecologically sound agriculture” is to speed up the transformation of agricultural development mode, taking into account resource conservation and environmental protection within the macro-economic system so as to realize mutual development on the premise of resource conservation and environmental protection. 3.6.2 “Resource and Ecologically Sound Agriculture” Is Open “Resource and ecologically sound agriculture” is diversified, covering low-­ carbon agriculture, eco-agriculture, and circular agriculture. From the perspective of agricultural development, low-carbon agriculture, eco-­ agriculture, and circular agriculture share the essence of traditional agriculture, but are bound by time and location. Each of them finds particular agricultural resources and environments agreeable. However, “resource and ecologically sound agriculture” does not rigidly adhere to a single mode of production, and thus agricultural types that are conducive to resource conservation and environmental protection are all under the umbrella of “resource and ecologically sound agriculture”. It is spatiotemporally broader. From the perspective of production pattern, low-carbon agriculture includes an input-reduction-oriented agricultural production mode (reduction-oriented production, circular production), carbon sequestration and carbon sinks production modes (forestry carbon

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

109

sequestration and sinks as well as farmland carbon sequestration and sinks),61 and a low-carbon rural reconstruction mode (low-carbon tourism, biogas, and other new energy production modes). Eco-agriculture adopts the patterns of three-dimensional land development, integrated river basin development, courtyard ecological production, soil and water conservation, comprehensive use of livestock, poultry, and farmland, as well as compound production of farming, forestry, and animal husbandry. Circular agriculture covers production modes such as biological material recycling, three-­dimensional and composite production, and comprehensive treatment of eco-environment, to name just a few. While differences exist among these agricultural production modes, “resource and ecologically sound agriculture” is multimodal to extend over all the above production modes. From the perspective of agricultural production resource use, both low-carbon agriculture and circular agriculture set limits on the use of pesticides and chemical fertilizers, but low-­ carbon agriculture restricts the use of agricultural machinery. Eco-agriculture encourages the use of agricultural machinery and applies proper pesticides and fertilizers. “Resource and ecologically sound agriculture” makes use of resources selectively in accordance with areal resource characteristics and features of economic and social development, and decides whether to use pesticides, chemical fertilizers, and agricultural machinery based on the agricultural production pattern. The inclusiveness and openness of “resource and ecologically sound agriculture” is of significant theoretical value. “Resource and ecologically sound agriculture” unifies the understandings of sustainable agricultural development and resolves the dispute among agricultural production modes. All kinds of production modes, including low-carbon, ecological, and circular agriculture, could be instrumental in the sustainable development of regional agricultural production. “Resource and ecologically sound agriculture” offers theoretical guidance on how to adjust the agricultural development direction for various regions, and how to adopt comparatively better development modes on a case-by-case basis to increase farmers’ incomes and agricultural production and efficiency. 61  Carbon sequestration is the process through which agricultural and forestry practices remove carbon dioxide (CO2) from the atmosphere. The term “sinks” is used to describe agricultural and forestry lands that absorb CO2, the most important global warming gas emitted by human activities.

110 

W. CHEN

4   Multiple Objectives of Agricultural Development Transformation in the Construction of “Resource and Ecologically Sound Society” The transformation of China’s agricultural development mode under the constraints of resources and environment not only needs to exceed the limit of those factors, but also to solve issues such as low agricultural productivity, rising production costs, young adult labor transfer, environmental pollution, and ecological degradation. Furthermore, China’s agricultural development needs to adapt to the requirement proposed by a series of interconnected and intertwined issues like industrialization, urbanization, internationalization, and populous country in the context of globalization, as well as the challenges of intensified swings of global agricultural supplies and global climate changes. Therefore, the transformation of China’s agricultural development mode under the constraints of resources and environment is a transformation of multiple objectives. It is essential to accelerate the transformation of the national economy and the integration of urban and rural development in the construction of a “resource and ecologically sound society”. It is the realization of multiple strategic objectives such as environmental protection, resource conservation, increase in farmers’ income, and the enhancement of agricultural productivity based on food security, agricultural product quality, and safety. 4.1  Promoting the Transformation of National Economy The Chinese economy has been experiencing sustained and rapid growth for a long time. However, some deep-seated problems have gradually emerged. As the old and new contradictions in the operation of the economy are intertwined, in addition to a more complicated international economic environment, it is increasingly unrealistic to rely on the large-scale expansion of exports. Besides, with the rise of trade protectionism caused by the global financial crisis and the emerging manufacturing industry in other developing countries, an economic development mode dominated by foreign trade is increasingly difficult to sustain. In the context of the irreversible rise of production costs, such as domestic labor force, as well as the increasingly fierce price competition with other developing countries in terms of general industrial products, it is an urgent task to accelerate the development of high value-added and high-tech industries while speeding up the phasing out of low-efficiency and high-consumption industries.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

111

Therefore, China is in a critical period of transformation of its national economy as a whole and strategic opportunities. Transforming the mode of economic development has become the main direction of China’s economy.62 The transformation of the mode of agricultural development serves as an important factor and basic support for accelerating the transformation of the economic development mode and promoting the transformation of the national economy. If the mode of agricultural development does not change, it will be difficult to achieve a fundamental change in the way the economy develops. On the one hand, agriculture is the foundation of development for the entire society, and the biggest market for the expansion of domestic demand is in the countryside. Reviewing modern socio-­ economic phenomena, we discover that the way out for economic crises mostly lies in agriculture. It is safe to say that agriculture is the haven for economic crises. Only by transforming the mode of agricultural development, enhancing the comprehensive production capacity of agriculture, comprehensively improving the market competitiveness of farm products and the income of farmers to facilitate rural economic development, and increasing the demand of rural markets and comprehensively expanding domestic demand can we create a new engine for national economic development and push forward a smooth transition from an export-oriented economy to an inward-oriented economy. On the other hand, agriculture is the fundamental industry in the national economy. In the current economic development of China, regardless of organization, scale, efficiency, technology, or production means, agriculture is the industry that needs to be transformed most in terms of development mode. According to the standards of modern agriculture, the status quo of China’s low industrialization, low marketization, and low intensification has not changed fundamentally, which is similar to the current situation of small production scale, decentralized management, low efficiency, and low technology. The root cause lies in the poor development mode and the fact that the traditional mode of production and management has not yet fundamentally been changed. Therefore, changing the mode of agricultural development becomes a major strategic task for transforming the mode of economic development.

62  Chen, Wensheng. The Transformation of the National Economy Must Breakthrough From the Three Rural Areas [N] Guangming Daily, July 13, 2010.

112 

W. CHEN

Solving the issue of agricultural development is a major challenge for CPC’s governance capability. The CPC Central Committee has listed the work of “agriculture, rural areas, and farmers” as top priorities of the party and the government. Since the beginning of the twenty-first century, The No. 1 Central Document has focused on “agriculture, rural areas, and farmers” for eleven consecutive years. To boil it down, the CPC Central Committee’s goal is to accelerate the transformation of the agricultural development mode and adapt to new requirements of the transformation of the national economy. However, faced with the great achievements of the national economy driven by industrialization, some people misunderstand this and form a mainstream idea of “only focusing on industrialization theory” in their research, which will undoubtedly lead to the formation of the “Latin American phenomenon”, meaning to develop industry at the cost of agriculture. Obviously, “only focusing on industrialization theory” is a misunderstanding of the scientific concept of development, and it is also a behavior of instant success and a lack of strategic thinking. Therefore, according to the theory of development engineered by agriculture, the transformation of the agricultural development mode must be regarded as an indispensable part of the effective development strategy of the national economy. Against the background of economic globalization, standing at the height of the transformation of the national economy and the enhancement of national competitiveness, we should accelerate the transformation of the agricultural development mode to release the vigor of agriculture and make it a new engine of national economic development, as well as a breakthrough for the smooth transition of the national economy. 4.2   Accelerating the Development of Urban— Rural Integration Historical experience shows that in the process of the transition from an agricultural society to an industrial society, urban development always goes first ahead of rural development. However, the urban-rural economy is an interdependent relationship. On the one hand, urbanization and industrialization require agriculture to provide sufficient food and industrial raw materials, and rural areas to provide all kinds of support, such as a consumer market. On the other hand, agriculture and rural development require urban industries to provide employment opportunities for surplus labor, and to guarantee modern equipment and technology needed for

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

113

agricultural development, and industrial products needed for rural construction and living. In this sense, urbanization and industrialization in the process of modernization are more dependent on the modern transformation of agriculture and rural areas. Therefore, if we want to eliminate the urban—rural dual structure and promote urban—rural integration, we must change agricultural development and realize the modern transformation of traditional agriculture. From a practical point of view, the modernization of developed countries and regions is based on the coordinated advancement of industrialization and agriculture and rural modernization. It is apparent that transforming the mode of agricultural development plays a fundamental and strategic role in promoting the development of urban—rural integration. At present, China has entered the stage of promoting agriculture through industry and urban areas supporting rural development. China is in a crucial period of transforming traditional agriculture and realizing modern agriculture transformation. The agricultural production mode, industrial structure, rural social form, and the mindset of farmers are undergoing significant changes, and the development of modern agriculture has a corresponding basis. At the same time, many long-standing and deep-seated problems such as backward agriculture, slow rural development, and difficulties of increasing farmers’ income have not been fundamentally resolved in China. They not only reflect the reality of profound changes in agriculture as well as internal and external environment in rural areas, but also the intensive manifestations of all kinds of issues caused by the long-term urban—rural dual structure.63 The root cause of this is that industrialization, informatization, urbanization, and agricultural modernization are not synchronized and are largely uncoordinated. Agricultural modernization is a “short board”, resulting in dual urban—rural development and the formation of urban—rural economic and social dual structure. As the gap between urban and rural areas continues to expand, the urban—rural dual structure is increasingly becoming the main issue of China’s economic and social development. Accelerating the modern transformation of agriculture and effectively addressing the linkage between agricultural development and industrial development, specifically rural development and urban development, rural resources and urban resources, 63  Opinions of the Central Committee of the Communist Party of China on Several Policies for Promoting Farmers’ Income Increase [N]. People’s Daily, February 9, 2004.

114 

W. CHEN

so as to break down the urban—rural dual structure and form a new frame of urban—rural integration development, has become a strategic way to solve China’s economic and social development. 4.3  Ensuring National Food Security Food security represents the material basis for a country’s long-term stability, and an important part of its national security strategy. If a food crisis were to occur in China, which has a population of more than one billion, it would not only be a disaster for China, but also for the world. Therefore, the significance of accelerating the transformation of agricultural development to ensure food security is not only limited to China, but affects the entire globe. From the domestic point of view, China’s agricultural development is in the best period in its history, and the total yield of grain has achieved “nine consecutive increases”. However, as China’s industrialization and urbanization continue to accelerate, the rural labor force continues to work in cities, and “hollow villages” and the abandonment of farmland are on the rise. “Who will cultivate land” and “how to cultivate land” have become unavoidable problems in food security. For various reasons, the level of agricultural development has not reached the expected height. As the high demand for food continues to grow, the constraints on resources and environment also increase, and food security faces the challenge of whether the agricultural development mode could be accelerated. From the international perspective, in the global economic competition, food crises caused by the inflation of food prices can trigger political and social crises from time to time in some countries and regions. Food, oil, and currency have become strategic weapons in world economic competition, and the comprehensive production capacity of agriculture as well as the competitiveness of the food market should definitely become an important part of the global strategy of a populous country.64 Therefore, it is a very difficult strategic task in the new historical period to ensure that national food security will be a primary goal of China’s agricultural development transformation. At present, China is facing a passive situation in which western developed countries, especially the United States, dominate the world 64  Zhu, Youzhi & Chen, Wensheng. The National Food Security Must Meet New Challenges in the New Era [N]. Guangming Daily, May 25, 2013.

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

115

agriculture market. As a country with traditional agriculture, China has little power of discourse in world agriculture market. Even in a global food crisis, it could only wait and see the huge profits in the world grain market and would not have a share in them. The agriculture of global superpowers becomes “agriculture of basic needs”. If China is to accelerate the modern transformation of agriculture in the context of national strategy, we must break through the traditional theory of comparative advantage of the national division of labor and incorporate the transformation of agricultural development mode into the strategy of improving the country’s global competitiveness. China must also elevate agriculture to the level of strategic industry, which serves to increase the global competition of the country with the purpose of forming the comprehensive production capacity of sustainable agriculture, while realizing the sustainable agricultural development and further converting it to an outstanding competitiveness in the international market of agricultural products and improving the game capability of agriculture in the global market. The overall goal is to strengthen national food security and thereby take the initiative in ensuring national food security.65 To ensure national food security, we must set up four major objectives: (1) to speed up the modern transformation of agriculture in order to comprehensively improve the agricultural production capacity and effectively meet domestic food demand; (2) to accelerate the modern transformation of agriculture to comprehensively enhance China’s grain market competitiveness and to expand its power of discourse in the world agricultural product market system; (3) to speed up the modern transformation of agriculture and improve agriculture in all aspects so as to build it into a strategic industry that serves national global competition; and (4) to create a sustainable and diversified strategic objective system featuring “security autonomy in the short run, international initiative in the mid-term, international leadership in the long run”, and a diversified strategic target system. 4.4  Ensuring the Quality of Farm Products With the rapid development of reform and opening-up over recent decades, China’s agricultural development is in an important period of transition from traditional agriculture to modern agriculture, with the 65  Chen, Wensheng. The Transformation of the National Economy Must Breakthrough From the Three Rural Areas [N] Guangming Daily, July 13, 2010.

116 

W. CHEN

supply of farm products focusing less on quantitative growth and more on quantity and quality at the same time. As an important issue concerning livelihood, agricultural product quality and safety is not only related to the adjustment of industrial structure of agriculture and the improvement of farmers’ income and agricultural benefits as a whole, but also the ability to enhance the market competitiveness of the farm products market and to deal with international trade barriers. This is not only related to overall quality of life, but also safety and social stability. Furthermore, it is related to both the improvement of the eco-environment and the sustainable agricultural development. This is a strategic issue concerning agricultural development, food safety, environmental protection, and economic development. The general situation of the quality and safety of China’s farm products has been stable and gradually progressed in recent years, and contributes greatly to safeguarding the effective supply of farm products, meeting the demands of customers, and increasing farmers’ income. However, with the acceleration of economic globalization, industrialization, and urbanization, the eco-environment of agriculture is gradually deteriorating, and the safety factor of farm products is decreasing, which means that farm products safety is increasingly becoming a prominent issue. Issues like pesticide residues, nitrates, and excessive heavy metals are becoming the focus of social media, especially a series of food safety issues such as “poisonous rice”, “Turbot”, and the “Sanlu milk powder issue” after SARS, which shows that safety problems occur frequently and have the potential to severely affect the integrity of China’s agricultural market. Therefore, improving the quality and safety of farm products is an important goal of China’s agricultural development transformation, and also one of the major problems to be solved in the new stage of agricultural development. The quality and safety issue of farm products not only directly affects the life and health of people, it also directly affects the international competitiveness of Chinese farm products. In the era of economic globalization, international agriculture trade competition is not only price competition, but also the competition of quality and reputation. The quality and safety of farm products is the core competitiveness in the market. To promote the strategic transformation of agricultural development and to improve the quality and safety of farm products, we must establish a green production concept, which means placing the quality and safety of farm products at the same level as quantitative safety and developing agriculture that is “high quality, high output, high efficiency, eco-friendly and

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

117

safe”, as well as promoting specialized, standardized, large-scale, and intensive development of agriculture. There are two specific objectives. First, by applying agriculture input control and standardized production, as well as a comprehensive control of the number of poisonous residues and harmful substances, quality and safety risks of farm products will be prevented. Second, by promoting the quality of farm products and building brand recognition of farm products, the competitiveness of farm products will be comprehensively enhanced, thus ensuring an improvement of agricultural productivity, an increase in farmers’ income, and sustainable agricultural development. 4.5  Promoting Resource Conservation The limited carrying capacity of resources is a major obstacle to the sustainable development of China’s economy and society. It is a long-term and systematic project for a populous country with severely limited resources per capita to protect and use those various resources rationally and practically, as well as to improve the utilization efficiency of resources, and to obtain the maximum economic and social benefits with as little resource consumption as possible. Although China’s agricultural development has achieved remarkable results in recent years, it has not been able to fundamentally break away from the traditional concept of relying on resources. There are still a large number of instances of plundering agricultural resources. The linear production mode with one-way flow featuring “resource input – farm products output – discharge of wastes” still exists.66 All of these lead to problems like excessive consumption of non-renewable resources such as land and water, abuse of resources and even waste, and arbitrarily discharging toxic and hazardous substances, posing increasingly serious challenges for China’s future development. Therefore, it is an important goal and basic requirement to accelerate the transformation of agricultural development by paying full attention to and taking into account the carrying capacity of resources, promoting resource conservation, and enabling sustainable use of limited natural resources. Promoting resource conservation will inevitably require the transformation of the agricultural development mode from the past model featuring “high input, high energy consumption, high pollution, low output” to 66  Chen, Yang & Lv, Tianxia. The Development of Modern Agriculture Must Take the Road of Resource Conservation [N]. Heilongjiang Economic News, July 19, 2011.

118 

W. CHEN

a “low-input, low-energy consumption, low-pollution, high-output” model, taking the improvement of resource utilization efficiency as the most important condition and emphasizing both resource development and conservation. First, it is essential to realize a reduced usage amount of agricultural resources, namely, through conservation-oriented technologies and structural adjustment of agriculture varieties to ensure and enhance agricultural output, as well as to reduce consumption of agriculture in aspects like energy, water resources, raw material, and land resources. Second, it is imperative to realize comprehensive utilization of agricultural resources, namely, through a mutual exchange of internal material energy of the agricultural industry, as well as resource utilization of agricultural wastes to materialize the recycled and efficient usage of agricultural resources. Third, it is important to push forward the development and utilization of new energy sources in agriculture, to promote the comprehensive utilization of alternative energy sources, namely, through comprehensive usage of renewable energy in agriculture such as wind energy, solar energy, and biomass energy to enhance the application level of renewable energy, and to promote the sustainable agricultural development. 4.6  Realizing the Eco-Friendly Society The purpose of protecting the eco-environment, establishing a virtuous interactive relationship between people and the environment, and realizing coordinated and sustainable development between production, consumption, and natural ecological systems is to achieve a strategic goal of ecological civilization characterized by an eco-friendly environment, where people can breathe fresh air, drink clean water, enjoy safe food, and produce and live in pristine ecological spaces. This is both a development issue and a livelihood issue. Although the deterioration of China’s eco-­ environment is gradually being controlled, this is an indisputable reality, especially the increasingly serious issue of smog, whose governance still has a long way to go. The main cause of China’s current ecological and environmental security crisis can be traced to extensive industrialization and urbanization, while the extensive agricultural development mode also has a share in it. For example, the plundering of natural resources through development has aggravated soil erosion and wetland reduction, while the use of chemical fertilizers and pesticides has led to problems such as land function

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

119

decline and species extinction. In many places, agricultural non-point source pollution even exceeds industrial pollution, which not only further pollutes and deteriorates the entire eco-environment, but also breaks down the agro-ecosystem and brings about frequent natural disasters and food safety issues. These pose a major threat to sustainable agricultural development itself. Under these dual pressures, it is undoubtedly important to transform China’s agriculture into one that is eco-friendly, enhances carrying capacity of resources and the environment, and grows to be multi-functional, such as keeping ecological balance. These will highlight agriculture’s natural properties like self-circulation and self-purification, and alleviate and repair the destruction of ecological systems and resources by human activities of living and production. This is also a necessary approach to the protection of the current agricultural eco-environment. Looking from the status quo of China’s current agro-ecosystem resources and environmental carrying capacity, we should take into account accelerating agricultural transformation and achieving eco-­ friendliness at the same time: ensuring the supply of farm products and improving the eco-environment.67 The essential part is to realize harmless agricultural production, namely, by promoting the use of bio-pesticides, organic fertilizers, degradable agricultural films, bio-oil, and other agriculture inputs that will not produce harmful products, and optimizing the planting structure of farm products so as to guarantee agricultural efficiency and realize a balance of agricultural ecology. Resource conservation and eco-friendliness are closely related. Simply put, resource conservation means to reduce pollution emissions and protect the eco-environment to a large extent, such as through the conservation of pesticides, fertilizers, agricultural film, and resource recycling. The two are unified in the overall strategy of “resource and ecologically sound society” construction, with the aim of promoting the simultaneous improvement of agriculture economic benefits, ecological benefits, and social benefits, and achieving rigorous, rapid, and sustainable agricultural development and rural economy. 4.7  Increasing Farmers’ Income Increasing farmers’ income is the core issue of the “three rural” problems, and is also a significant matter in China’s national economic and social 67   Zhu, Lizhi. Guiding Agricultural Development with the Concept of Ecological Civilization [N], Economic Daily, August 16, 2013.

120 

W. CHEN

development. It is directly related to the improvement of living standards among farmers, the mobilization of agricultural production enthusiasm, the increase of agriculture inputs, the expansion of reproduction, and the prosperity and stability of rural areas. Furthermore, it relates to the establishment of a prosperous, stable, comprehensive, and well-off society, sustainable agricultural development, and the effective guarantee of national food security. In sum, it is a general issue concerning national economic development. Since 2000, China has adopted preferential policies and a series of effective, practical policies and measures for farmers to increase their income, from exempting agriculture taxes to strengthening rural infrastructure, from new countryside construction to the integrated development of urban and rural areas. These bring tangible benefits to farmers and enable them to enjoy the fruits of social development, which demonstrates social justice and has won sincere support from millions of Chinese farmers. However, in the new transitional period, it is more and more difficult for farmers to increase their income. The rate of income growth is relatively slower, and the income growth sources are increasingly exhausted. To solidify the foundational position of agriculture, the government has adopted a variety of policies to benefit farmers, but the growth rate still fails to be faster. This is mainly due to the retardation of agricultural development mode transformation, including factors like the rural management system, land system, market conditions, technology level of agriculture, promotional systems, and rural public investment. Moreover, globalization, industrialization, and urbanization have all had multiple effects on increasing farmers’ income. Establishing a long-term mechanism to increase farmers’ income is still a focus of Chinese society and an area of difficulty in macro-economic policy choices. Therefore, increasing farmers’ income is the starting and ending point for promoting the transformation of China’s agricultural development. In addition, increasing farmers’ income is a fundamental criterion for the successful realization of modern transformation of agriculture, which is also a manifestation of the operation of agricultural development. Under the conditions of a market economy, income expectation is the basis for farmers to engage in agricultural production and management. When the income of agricultural production and management is lower than farmers’ expectations, enthusiasm is difficult to maintain, and farmers may even turn to other industries. In particular, to ensure the national food security goal, we must rely on the improvement of farmers’ incomes to make it an

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

121

endless internal driving force. In this sense, increasing farmers’ income is also a necessary condition for realizing China’s agriculture transformation. Achieve the goal of increasing farmers’ income is inseparable from comprehensively improving the output per unit area of agricultural output and economic benefits. It is also inseparable from the expansion and added value of farm products, as well as from the government’s policy of benefiting farmers. From the current point of view, the goal of transforming the agricultural development mode and realizing the increase in farmers’ income should stimulate the growth rate of farmers’ income so it is higher than that of urban resident income. Furthermore, it should increase the comparative income of agriculture and realize the rapid growth of farmers’ operating income. By doing so, it has the potential to accelerate the transformation of China’s agricultural development. 4.8  Improving Agricultural Productivity Historical experience from the founding of the People’s Republic of China to reform and opening-up shows that the level of efficiency in agricultural productivity affects the healthy development of China’s entire national economy. Under the conditions of a market economy, agricultural productivity is a comprehensive manifestation of land productivity, resource utilization, agricultural labor productivity, and core competitiveness, a main obstacle to improving farmers’ income, narrowing the gap between urban and rural areas as well as between industry and agriculture. Affected by the traditional concept of agricultural development, the amount of labor and land scale have been regarded as decisive factors for improving agricultural productivity in the long term. The key role of sustainable growth of new agriculture human capital has been ignored, and the key role of human capital in agricultural development has not played out effectively. At the same time, the current agricultural product prices, especially grain prices, do not fully reflect the dynamic changes of market price factors, and there is no inherent incentive mechanism for improving agricultural productivity. The country is considering food security, while farmers are considering “the security of growing grain”. If growing grain is unprofitable, the more seeds planted, the more loss there will be. At that point, it is unlikely that any farmer would be imprudent enough to grow it. The contradiction between small-scale decentralized operations and intensive operations of the large-scale market is also prominent. Agricultural development problems such as low commercialization rates, low market

122 

W. CHEN

competitiveness, low efficiency, low scale, and low organization urgently need to be resolved. Therefore, agricultural productivity improvement will rely more on scientific and technological progress, the improvement of facilities, and the quality of workers. This will enhance the comprehensive agricultural production capacity, market competitiveness, and sustainable development capability, which will be the starting point for accelerating the transformation of agricultural development. Increasing agricultural productivity means acquiring the same amount of output with less input or obtaining more output with the same input and bringing more benefits to agriculture producers. The essential part is the effective utilization of agricultural productivity factors. The goal of improving agricultural productivity is first to increase land output rate as there is a conflict between a growing population and less available land in China. And with the continuous development of urbanization and industrialization, the resources of farmland are decreasing, which means land will become a decisive constraint in agricultural development. First, along with the increase of agricultural product demand, the transformation of agriculture must rely on the increase of land productivity. Second, China must increase labor productivity, which is the quantity or value of products produced by agricultural workers per unit of time. Although there is a large amount of surplus labor in rural China, in the long run, with the improvement of urbanization and the rise of labor costs, increasing agricultural labor productivity will become an important condition for improving agricultural productivity and enhancing agriculture competitiveness. Third, there must be an increase in the resource utilization rate, which means the effective use of land, water, fertilizer, and agricultural wastes. Improving the utilization rate of agricultural resources is the basis of protecting the eco-environment of agriculture, improving agricultural productivity, and exploring multiple agricultural functions. Agricultural development in China is facing the constraints of insufficient resources, so improving the resource utilization rate is the inevitable goal of China’s agricultural development transformation. In summary, under the constraints of resources and environment, the above-mentioned goals of China’s agricultural development transformation are inextricably linked. For example, the realization of the goal of resource conservation and eco-friendliness is the basis for achieving food security, and the realization of food security could also contribute to resource conservation and eco-friendliness. Likewise, the realization of the goal of increasing farmers’ income and agricultural productivity

3  THE TRANSFORMATION OF CHINA’S AGRICULTURAL DEVELOPMENT… 

123

improvement serves as an important prerequisite for ensuring food security, as well as an important driving force for economic security. The realization of food security is an important basis for achieving goals of economic security. The realization of the goals of food security and economic security also provides an important guarantee for increasing farmers’ income and agricultural productivity at the same time. The realization of multiple objectives of agricultural development transformation must take into account the international environment and China’s specific national conditions, and consider the opportunities and challenges brought by China’s agricultural development through globalization, industrialization, urbanization, and internationalization. It should also consider realistic conditions, such as resource endowments, environmental carrying capacity, material foundation, talent support, institutional guarantee, and the contribution of sci-tech in China’s current agricultural development, and form a comprehensive strategy of realizing the transformation of agricultural development thereon.

CHAPTER 4

The Transformation of the Utilization Mode of Elements and Resources with the Agro-­ scientific and Technological Innovations at the Core

Under current resource and environmental constraints, China must establish a system for the agro-scientific and technological innovations to achieve the following goals: to speed up the advancement of sci-tech and promote agricultural mechanization; to speed up agricultural labor-saving technology to better allocate human capital and boost labor productivity; to speed up resource-conserving technology to increase land productivity and resource utilization ratio; and to speed up environmental protection technology to reduce non-point agricultural source pollution and protect farmland environment. These measures will enable technological innovations to be an internal impetus to accelerate the transformation of agricultural development mode in the construction of a “resource and ecologically sound society”, which represents the most fundamental way to transform Chinese agricultural development as well as a prerequisite for advancing the development of a “resource and ecologically sound society”.

© The Author(s) 2020 W. Chen, Challenges and Opportunities for Chinese Agriculture, China and Globalization 2.0, https://doi.org/10.1007/978-981-15-3536-9_4

125

126 

W. CHEN

1   Innovation of Agro-sci-tech and the Transformation of Agricultural Development Mode Ancient as it is, agriculture is also a modern industry, guiding the future and deciding the development of bio-industry and new energy fields. It is also a strategic industry that changes with technological progress. In the current stage, China’s agricultural development is faced with resource constraints of diminishing farmland, continuous drainage of workforce, and capital outflow. It is also confronted with environmental pressure such as the overapplication of pesticides and chemical fertilizers, increasingly deteriorated non-point sources pollution, and the destruction of biodiversity. Therefore, it must improve policy measures that support agro-­ scientific and technological innovations to achieve endogenous growth driven by technology and to transform the development mode driven by innovation, thereby increasing the resource utilization ratio, and land and labor productivity. This is not only an effective means to develop contemporary agriculture which features resource conservation and eco-­friendliness, but a major change of the agricultural development model. 1.1  The Historical Evolution of Agricultural Development in Human Society Innovation in sci-tech is the current trend of modern agriculture. A historical review shows that the evolution of human agricultural production has gone through three stages: “ancient agriculture, traditional agriculture, and modern agriculture”.1 Between the last two stages, the natural, economic, ecological, and social attributes of agriculture are strongly linked to its technological advances; each stride in agro-technology could be considered as an engine that moves agriculture to a higher stage.2 Arguably, it is the constant evolution of forms of different agro-­technology that characterizes agriculture at various historical stages.

1  Wan, Baorui. The development of modern agriculture is the primary task of new countryside construction [J]. Qiu Shi, 2007(4). 2  Huang, Jianguo & Chen, Wensheng. Huxiang Forum: On Agriculture, Rural areas, and Farmers (2012) [M]. Hunan: Hunan Normal University Press, 2012: 2.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

127

In terms of technological forms, ancient agriculture and traditional agriculture share the following features: practice-oriented, low productivity, backward mode of production, scarce exterior investment in agriculture, and low and superficial technological interference in natural environment. Although these features are eco-agricultural, they are dependent on natural resources, leading to inefficient production.3 Agricultural modernization began with the Industrial Revolution as a leading trend and international competition for agriculture in the eighteenth century. The first industrial revolution expedited the progress of sci-tech, resulting in a set of conventional agricultural technologies based on industrialization, including chemical engineering, petrochemical processing, and mechanization, which could be defined as modern agrotechnology. “Agricultural modernization, which is built upon the two pillars of mechanization and petrochemical processing, has basically become a variation of industrial production”.4 They share similar production modes: producing a certain number of farm products through investing a certain number of materials and technologies, essentially transforming petroleum to food by virtue of land. “As a high input, high output agricultural development mode, it requires large quantities of agricultural machinery driven by petroleum products and agricultural chemicals based on petroleum products, such as fertilizers and pesticides”. Thus, it represents a “high-carbon agriculture”, featuring “high consumption, high emissions and high pollution”. Given its extensive, single-species, and continuous farming approach under an industrial and large-scale production with significant use of intensive farming systems and wide use of inorganic agricultural chemicals,5 it is also known as “industrialized agriculture” or “petroleum agriculture” in contemporary western countries. Agricultural modernization is a dynamic process in which the goals, tasks, development mode, and methods change with various historical periods. In the 1980s, along with the waves of the three revolutions, the information revolution occurred as a result of the development of new 3  Hu, Xiaobing & Chen, Fan. An Introduction to Philosophy of Agro-technology [M]. Shenyang: Northeastern University Press, 2008; Wang, Hanmin. An Overview of Agriculture: Forms of Production [M]. Beijing: The Central Party School Publishing House, 2001. 4  Zhang, Yuying, Zhang, Lihua & Wang Baorong. The Developmental Trend of Chinese Agricultural Modernization [J]. Modernizing Agriculture, 2011(9). 5  Yu, Yongyue & Wang, Zhihe. Sustainable agriculture and constructive postmodernism in Contemporary Western Countries [J]. Marxism & Reality, 2008(5).

128 

W. CHEN

energy and new materials, giving birth to the new contemporary eco-­ agro-­ technology based on biological technology, genetically modified technology, and digital agro-technology. As agriculture is highly dependent on resources and the environment, western developed countries have begun to explore new types of contemporary agriculture that is “sustainable”, “organic”, “ecological”, “recycled”, “biological”, or “natural” in the context of climate change, resource constraints, and increasing environmental pollution.6 This has changed the direction of contemporary agricultural development characterized by “oil-based agriculture”, a shift from “industrial agriculture” featuring “high investment, high energy, high pollution and low output” to the development mode of “low input, low energy, low pollution and high output”.7 At present, the fourth technological revolution led by new energy and biotechnology is booming. The United States and other developed countries are seeking to develop biotechnology and related industries to play a leading role in the world’s transition from the era of the knowledge economy to that of the bio-economy, in the hope of controlling the power of discourse over the world’s farm products market.8 It can be said that agricultural competition in the twenty-first century is essentially the competition of agro-sci-tech. This is precisely because the development of agriculture stems from the endogenous progress of technology, where the emerging technologies are well applied in agriculture in the new century and technological innovation has become the main driving force for agricultural development. 1.2  The Relationship between Agro-Scientific and Technological Innovations and the Transformation of Agricultural Development Mode In the process of agricultural modernization, the agricultural development mode and agro-scientific and technological innovations are an organic whole. “They successively related to each other, interlinked and interacted with each other. They change with the development of the agricultural 6  Wang, Zhihe. The Philosophical Thinking on Agriculture and Rural Development from the Perspective of Post Modernism [J]. Philosophical Trends, 2010(4). 7  Chen, Wensheng. Building New Countryside: Focus, Difficulties and Key points [M]. Beijing: Press of Chinese Academy of Governance, 2011: 73. 8  Zhu, Youzhi & Chen, Wensheng. Challenges of Ensuring Food Security in China in the New Era [N], Guangming Daily, May 25, 2013.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

129

economy and are consistent throughout the whole activity and process of agricultural economic development”.9 On the one hand, technological innovations promote the process and determine the outcome of the transformation of agricultural development mode. It is necessary to promote agriculture to transform from epitaxial growth to endogenous growth, from extensive management to intensive management, from resource-consuming development to sustainable development. According to the theory of “Reforming traditional agriculture” by Schultz, the essential element for transforming agriculture from traditional to modern is upgrading the existing technology, and changing the agricultural structure through modern technology and the source of income, which will change the input structure of agricultural production factors. By doing so, the production mode and pattern will change, followed by that of agricultural production organizations and management.10 The process of this change is to use modern technology to equip agriculture, form a new agricultural development system, promote the efficiency of agriculture to improve resource elements with modern organizational methods and business concepts, and thus achieve the transformation of the agricultural development mode. On account of the changes in the agricultural production structure, the new agricultural industrial system, and the development of corresponding agricultural management systems over time, the land output rate, resource utilization rate, labor productivity, and agricultural product market competitiveness are continuously improved, which will change the income structure of farmers and eventually establish a long-term mechanism for increasing farmers’ income and agricultural efficiency to promote the sustainable agricultural development.11 On the other hand, the way agriculture develops affects where the technological innovations lead. From the international perspective, advanced technologies represented by bio-group technology, genetic modification technology, and digital agro-technology are developing rapidly, and agrosci-tech has entered into a period of booming growth, creating 9  Song, Qiaosheng, Lou, Guangxin, Li, Baoxi & Yao, Chuanwu. Innovative Model of Agro-sci & tec Based on Transforming Agricultural Development mode [J], Hubei Agrosciences, 2011 (19). 10  Liu, Qi & Zhang, Dongping. An Analysis of the Development of Modern Agriculture in Henan Province [J], Journal of Henan Agricultural University. 2010 (6). 11  Zhang, Dongping. Promoting the Transformation of Agricultural Development mode with Modernization [N], Henan Daily, March 17, 2010.

130 

W. CHEN

fast-­growing new industries. The share of technology exceeds that of land, labor, capital investment, and institutions, which shows the strength of scitech as the primary product of agricultural development. Domestically, relevant research shows that technological advances such as excellent varieties, cultivation techniques, plant protection techniques, and low-yield soil improvement techniques contribute most among the factors in increasing agricultural production. Furthermore, 2012 No.1 Central Document clearly states that “to accelerate agro-scientific and technological innovations and continuously enhance farming product sustainable supply ability”, which highlights the central government’s judgment on food security and the agricultural development mode and determines where agro-scientific and technological innovations should go. Only by conforming to new requirements of agricultural development and enabling the contribution of technological advances and the quality improvement of the labor force to be a lasting driving force of transforming agricultural development mode can farm products be effectively supplied and food security ensured.12 In the current stage of agricultural development, the agricultural development mode must shift from a production-oriented type, which focuses on increasing production, to a technology-led type that guarantees the supply of farm products, enhances agricultural market competitiveness, and increases farmers’ income. Therefore, to accelerate agro-scientific and technological innovations, we must start by increasing the rates of land output, resource utilization, and labor productivity to ensure national food security and promote the transformation of the agricultural development mode. Based on the fundamental requirements of increasing yield and profit, fine variety and good cultivation, the integration of agricultural machinery and agronomy, as well as the coordination of production and ecology, we should adopt both domestic and foreign new sci-tech to support the practical experience and theoretical achievements of agricultural development. We would accomplish this by promoting the integration of agro-technology, the mechanization of agricultural labor, and the informatization of agricultural production and management. To set up a technology system featuring high yield, high quality, high efficiency, and ecological safety, we must meet the requirements of agricultural development.13 12  Huang, Jianguo & Chen, Wensheng. Huxiang Forum: On Agriculture, Rural areas, and Farmers (2012) [M]. Hunan: Hunan Normal University Press, 2012. 2–3. 13  The Decision of the Central Committee of the Communist Party of China on Several Big Issues on Promoting the Reform and Development of Rural Areas [N], People’s Daily, October 20, 2008.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

131

1.3  The Main Task of Scientific and Technological Innovations in Accelerating the Transformation of Agricultural Development Mode China’s agricultural development, despite its remarkable achievements over the past decade, is mainly supported by a large increase in resource input according to Chuanqi He, professor at the Chinese Academy of Sciences. For example, from 2005 to 2010, the total cost of the key products of China’s three main grains increased by ¥247.65 per mu, an increase of 58.3%; among them; fertilizer fee increased by 31.6%; mechanical operation fee by 125.1%; labor cost by 49.9%; and land cost by 114.9%, accounting for 10.8%, 19.1%, 30.5%, and 28.8% of the total cost increase respectively. According to data from the World Bank, in 2008, the amount of chemical fertilizer applied per metric unit of farmland in China reached 468.0kg, equivalent to 4.54 times that of the United States, 2.25 times that of the United Kingdom, 1.68 times that of Japan, 2.92 times that of Germany, 3.20 times that of France, and 3.05 times that of India.14 This has led to a rapid increase in the cost of farm products in China and low market competitiveness. In the context of globalization, market competition represents the contest of core technologies. The market competition of Chinese farm products is mainly cost competition and lacks the core technologies that the international agricultural competition requires. Except for Longping Yuan’s hybrid rice seedling technology, China seldom makes breakthroughs in the fields of flower cultivars, vegetables, leeks, fruits, and other cash crops. For China, a large agricultural country with a large population, in the face of general low agricultural benefits, it is necessary to innovate in the four core technologies, namely, biotechnology, mechanization technology, information technology, and resource conservation technology, in addition to applicable technologies and system integrations. The main tasks of innovations are cultivating fine varieties; improving the quality of farm products; increasing the added value of farm products; saving water, electricity, energy, and other resources; saving labor; improving agricultural efficiency, as well as enhancing the development of agricultural material technology to adapt to different conditions. This is not only directly related to the economic benefits of agriculture and the increase of farmers’ income, but also directly related to the sustainable development of the environment and ecology. 14  He, Chuanqi, China Modernization Report 2012: Agriculture Modernization Research [M] Beijing: Peking University Press, 2012.

132 

W. CHEN

At the same time, China must break the limited combination of agro-­ sci-­tech and agricultural development, and vigorously promote their integration. Focusing on areas such as cultivating improved varieties, economizing and reducing expense, water-saving irrigation, farm machinery, new fertilizers, prevention and control of major diseases, processing, gathering and transportation, recycling agriculture, marine agriculture, and the livelihood of rural citizens, agro-scientific and technological innovations strive to make major breakthroughs in new breed selection, genetic engineering, biological pesticides, and vaccine preparation. It is imperative to implement the strategy of agricultural stipulation technology, and upgrade the technologies of breeding, fertilization, water conservation, plant protection, husbandry, flood control, and waste recycling to be consistent with high quality and efficiency, low investment, low cost, and sustainable development. China will vigorously support the development of improved breeding, production, and processing technologies for leading farm products such as rice, cotton, tangerines, and livestock, and promote the comprehensive upgrading of traditional agricultural technologies. We will speed up the construction of a diversified and multi-level agro-­ technology promotion system that is jointly developed by government public funds and other organizations and improve the agricultural quality control system and social service system.15 1.4  Emerging Strategic Industries in Agriculture Represent the Innovative Directions of Agro-Sci-tech New strategic agricultural industries are technology-intensive and knowledge-­intensive agricultural industries characterized by high technology, low resource consumption, high efficiency and low emission. They involve the innovative ability of agricultural development, as they also have a deep integration of the core technologies in agro-sci-tech. They will play a decisive role in seizing the pole position of the world’s agricultural development. They represent not only the innovative direction of agro-sci-tech, but also the developmental direction of agricultural industry, and promote a new round of agricultural development. At the same time, once the development of new strategic agricultural industries achieves a leading 15  Suggestions on Accelerating Agro-sci & tec Innovation and Ensuring a Sustainable Supply of Agricultural Products Issued by The Central Committee of the Communist Party of China and the State Council [N], People’s Daily, February 2, 2012.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

133

position, it can not only bring agricultural economic benefits beyond the average social profits, but also obtain the discourse of power in the world agricultural product market system. Therefore, only by continuously promoting the independent innovation of key technologies and core technologies in agriculture, making emerging strategic agriculture industries pillars of China’s agricultural modernization, and continuously guiding the upgrading of traditional agricultural industries can the core competitiveness of China’s agricultural development be improved. Without marketization, it is hard to transform the core technologies born in scientific and technological innovations into real productivity. However, agricultural enterprises are those which best understand the means of survival and development, as they can continue to create new products, high-quality products, and low-consumption products for the market, while rewarding research and development investments. They understand best new developments in the technological progress of the industry, because they can transform research results into new production technologies. Furthermore, they understand how to use the technical standards as a “touchstone”, industrialize technological innovations in a timely manner, and improve the efficiency of the use of production factors. For example, the world’s four major grain retailers, “ABCD”, namely ADM, Bunge, Cargill, and Louis Dreyfus, control the import and export of global food, the manufacture and packaging of food, and the formulation of prices through the core seed technology. These companies not only control 80% of the grain trade, but also 70% of the world’s oilseed trade. Although Longping Yuan’s hybrid rice in China is a core technology, it has not become a new strategic agricultural industry in China in the same fashion as Mengshan Mountain, DuPont, and other western agricultural enterprises. Therefore, to develop a strategic new agricultural industry, it is necessary to build an agricultural “aircraft carrier” to cultivate key agricultural industries. First, it is necessary to make a scientific plan. From the view of national security, it is important to make a scientific plan of strategic agriculture and emerging industries. While paying attention to traditional agricultural industries, it is necessary to pay special attention to the development of emerging agricultural industries such as new energy, bio-­ pharmaceuticals, bio-agriculture, low-carbon agriculture, and information agriculture. Second, we must highlight key points and innovations. Biological breeding, bio-medicine, and bio-energy are all important industries which may bring revolutionary changes to the entire agricultural

134 

W. CHEN

production system in the future and should be listed as top priorities in the development of new agricultural industries. Third, it is necessary to launch new initiatives, for example, the implementation of major agro-sci-tech projects, the establishment of a strategic alliance for agricultural industrial technological innovation, and the promotion of large-scale farm products. In particular, it is necessary to focus on the implementation of agricultural and sideline products, biochemical projects for self-finished products, and the creative projects of the modern bio-medicine industry in order to catch up with development, and give full play to the advantages of traditional Chinese medicine and traditional Chinese medicine resources. To develop a new strategic agricultural industry, it is not necessary to completely discard traditional industries. Instead, it is necessary to combine the development of strategic emerging industries with the transformation and upgrading of traditional agriculture to promote the optimization and upgrading of traditional agriculture, which will lay the foundation for the development of a new strategic industry. Because traditional agriculture features large scale and low technology, it is an urgent task to accelerate the development of agriculture through the use of new technologies so that traditional agricultural industries can become more technological and the quality and competitiveness of their products can be improved. For example, if China could change selling primary or low-end products and make good use of technological innovations, it could develop major farm products, such as rice, tangerines, and camellia oil, into a new strategic industry.16

2   Labor-Saving Technological Innovations, Human Resource Development, and Improvement of Labor Productivity With the rapid development of China’s agriculture, along with increased industrialization and urbanization, and continuous outflow of rural labor, “aging, feminization, and low culture” has become a common phenomenon among agriculture practitioners in rural areas, and “part-time, sideline, and extensive” has become the basic trend of agricultural production and management. “Who will plant the land?” and “How to plant the land?” are increasingly becoming the major practical problems that we 16  Chen, Wensheng. Building New Countryside: Focus, Difficulties and Key points [M]. Beijing: Press of Chinese Academy of Governance, 2011: pp. 112–114.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

135

must face and urgently resolve. Therefore, only by accelerating labor-­ saving technological innovations, replacing agricultural labor with mechanization, regarding human resources as an intrinsic factor which is more important than natural resources and capital, and developing rural human resources can we realize the fundamental transformation of the agricultural development mode. 2.1  Labor-Saving Technological Innovations and Agricultural Labor Productivity Agricultural labor productivity that exceeds the individual needs of workers is the foundation of all societies.17 If China wants to increase agricultural labor productivity, improve agriculture efficiency, and provide an increasing number of healthy and safe farm products in its limited farmland area, it should rely on innovations in labor-saving technologies. 2.1.1

 hina’s Agricultural Development Faces Structural Shortage C of Labor Due to the continuous increase of agricultural production costs and decline in agriculture income, the labor force engaged in agricultural production is rapidly declining in terms of both quality and quantity. This labor force primarily resides in rural areas, the “386,199 troops”, which mainly comprises the very young or the elderly, as well as those with poor physical fitness and low educational level. As a result, the quality of the labor force engaged in agricultural production has become increasingly incompatible with the requirements of agricultural modernization. Comparing urban and rural labor prices, we can see that agricultural production labor prices are out of balance with non-agricultural labor prices. In 2011, the average monthly income of a migrant worker in China reached ¥2049, with an increase of ¥359 over 2010, a growth rate of 21.2%.18According to this calculation, the annual income of a migrant worker was ¥24,588. In 2011, the per capita net income of rural residents in China was ¥6977, with an increase of 17.9% over 2010.19 The income  Marx, Karl. Das Capital: Volume 3 [M], Beijing: People’s Publishing House, 1975: 885.  The Average Monthly Wage of Migrant Workers Reaches ¥2000, Only 30% That of Urban Workers [N], International Finance News, March 2, 2012. 19  National Bureau of Statistics of China, Statistical Communiqué of the People’s Republic of China on the 2011 National Economic and Social Development [J], China Statistics, 2012 (3). 17 18

136 

W. CHEN

of migrant workers working in cities is more than three times that of those in rural areas, and the growth rate of urban wages is greater than the growth rate of rural income. From the perspective of agriculture itself, in recent years, as the prices of agriculture materials and labor have skyrocketed, the net income of China’s farm products has generally declined, especially as the income from grain production is much lower than that from working outside the country. According to a survey in Hunan’s rural areas, the income from rice in the first season of 2011 was ¥300–400/ mu, and the income from double-season rice was ¥500–600/mu, while farmers can earn ¥100–150 per day from part-time jobs. The annual income from farming 30 or 50 acres of grain cannot catch up with a part-­ time job income.20 Because it is low in comparative income, agricultural production has lost its general appeal. Furthermore, agro-technology is no longer passed down from generation to generation. Would-be young and middle-aged rural farmers stay in cities by going to school or working, and they also try their best to raise their children in cities. The new generation of farmers, coming of age primarily in the 1980s and 1990s, has become increasingly unfamiliar with agricultural production. They are not familiar with traditional agriculture techniques, how to use traditional agriculture tools, or modern agricultural techniques. “Based on the statistics from relevant departments, the total number of migrant workers in China exceeds 50 million in 2011, and about 10 million people will continue to move to cities every year. In some rural areas, it is almost impossible to find a young and middle-aged laborer”.21 Farmers who are left behind lack physical strength and have a relatively low educational level. Their old age and lack of commodity knowledge, market knowledge, scientific and technology knowledge, and management knowledge directly affect the accessibility of agro-sci-tech, which limits the promotion and application of new varieties and technologies in agricultural production, and delays the transformation and upgrade of the development of agriculture. The low productivity of agricultural labor is the main reason for the low comparative efficiency of agriculture. Agricultural labor productivity reflects the efficiency of agricultural workers in agricultural production, 20  Relevant data from the author’s field survey in Hengyang County, Yueyang County, Hunan Province in August 2012. 21  Zhu, Lihao. Better Replace Laborers with Agriculture Machinery [N], Economic Daily, April 27, 2012.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

137

and this directly affects agricultural production costs and the income of farmers engaged in agricultural production. It is an important indicator to measure the level of agricultural modernization. Although China’s grain, rice, and wheat outputs in terms of unit area have reached the level of developed countries, and corn yields in unit area have reached the level of moderately developed countries, China’s agricultural labor productivity is not only far behind the level of agricultural development in developed countries, but also much lower than domestic industrial labor productivity. According to Chuanqi He, in 2008, China’s agricultural labor productivity was nearly 10 times lower than domestic industrial labor productivity, about 47% of the world average, about 2% of the average of high-income countries, and about 1% of that in the United States and Japan. China ranks 91st in the world, and the level of agricultural development is about 100 years behind the United States.22 Under the conditions of market economy, the price of agricultural production materials and labor is determined by the market. The low productivity of agricultural labor means that there are more input factors (including labor force) consumed by the production of farm products per unit, and also higher agricultural production costs as well as low agricultural production efficiency. It is precisely because of the low comparative income that agriculture is in a weak position in competition with cities and non-agriculture industries in terms of production factors such as labor. In the long run, the rural labor flow has shown an increasing and accelerating trend. 2.1.2

 he Key to Improving Agricultural Labor Productivity Is T to Promote Labor-Saving Technological Innovations There are three factors that determine agricultural labor productivity, namely, farmland area, crop yield, and labor intensity. With that said, there is no realistic possibility of expanding farmland to increase agricultural production in China. The only feasible way to improve agricultural labor productivity is to promote intensive management through labor-saving technological innovations, and to reduce the labor intensity while maintaining or raising agricultural yield. There are two aspects to labor-saving technological innovation. First, promoting agricultural mechanization and realizing the substitution of labor by agricultural machinery can greatly shorten agriculture time, expand agricultural production scale, 22  He, Chuanqi. China Modernization Report 2012: Agriculture Modernization Research [M] Beijing: Peking University Press, 2012.

138 

W. CHEN

increase agriculture intensification, and also reduce agriculture dependence on labor. Second, for the purpose of labor saving and improving agricultural output, China must promote the development and utilization of human resources by improving the quality of agricultural laborers, promoting the optimal allocation of labor resources, and enhancing farmers’ production and management capabilities. Based on the reality of China’s agricultural development, the continuous inflow of rural labor into the city is an inevitable trend of China’s modernization, and it is largely irreversible. On the one hand, it faces the dilemma of the massive loss of agricultural labor, but on the other, the transfer of rural labor force also provides good conditions and rare opportunities for promoting labor-saving technological innovations, accelerating the transition of agriculture to intensification and modernization, realizing the upgrading of agricultural production methods, and improving agricultural productivity. First, upgrading agricultural production methods helps to resolve the structural shortage of agricultural labor. Industrialization and urbanization are the routes for China to realize modernization, but the current level of urbanization in China is still low. In 2011, the urbanization rate was 51.27%,23 while it was approximately 80% in developed countries. According to China’s second agriculture census, the total rural labor resources were 0.531 billion people at the end of 2006, including 0.479 billion rural employees and 0.339 billion people engaged in the primary agriculture industry, accounting for 63.8% of the rural labor force.24 In the United States and other developed countries, the value is less than 5%. Even by 2010, there were still 279 million people in the primary agriculture industry in China, accounting for 20.85% of the total population.25 Thus, the transfer of rural labor is still an inevitable trend considering China’s present economic development and social progress. The current shortage of agricultural labor is a structural shortage, which is the insufficient supply of labor, especially high-quality labor, in agriculture operations. With labor-saving 23  China Mayors Association. China Urban Development Report 2011 [M], China City Press, 2012. 24  Office of the Leading Group of the State Council for the Second National Agricultural Census, National Bureau of Statistics of China. Communiqué on Major Data of the Second National Agriculture Census of China (No.1), February 21, 2008. 25  Department of Population and Employment Statistics, National Bureau of Statistics, Department of Planning and Finance, Ministry of Human Resources and Social Security, China Labor Statistics Yearbook 2011 [M] Beijing: China Statistics Press, 2012.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

139

technological innovations, we can liberate rural labor from heavy agricultural production and create conditions for rural labor flow and their longterm stable life in urban areas. On the other hand, high-quality laborers will return due to optimized labor conditions, reduced labor intensity, and increased labor income. This can fundamentally solve the current structural shortage of agricultural labor, and achieves the goal of reducing agricultural labor while increasing agricultural productivity. Second, increased agricultural productivity can reduce agricultural production costs. Labor cost is an important part of China’s agricultural production costs, and the high cost of agricultural labor in China has always restricted the effectiveness of agricultural production. Studies have summarized the proportion of labor costs in China’s crop production: cotton (21%), wheat (35%), rice (36–38%), corn and soybeans (46%), and rapeseed (54%). In developed countries, such as the United States and Canada, the ratio of labor costs to the production costs of these six crop products is only about 9%. In addition to cotton, China’s labor costs per kilogram of farm products are more than four times those of other developed countries. It is clear that the high production cost of many crops in China is mainly caused by high labor costs.26 Especially at present, with the rising labor prices of industry and service industries, the price of agricultural labor has also risen, which has greatly increased the cost of agricultural production and the difficulty of the construction of farmland water c­ onservancy. Promoting innovations in labor-saving technology and replacing labor with agricultural machinery can significantly reduce labor costs, and increase the degree of agriculture intensification, quickly improving agriculture efficiency. Third, labor-saving technological innovations promote agricultural industrialization. On the one hand, labor-saving technological innovations can ensure or improve agricultural output as well as reduce the use of labor, which will surely promote the scale, standardization, and intensive management of agriculture. This lays a good foundation for the advancement of agriculture industrialization. On the other hand, with the specialization and commercialization of agricultural production, the demand for agricultural product processing and agriculture socialization services is becoming stronger, and innovations in labor-saving technology can greatly liberate the labor force from agricultural production. For those liberated, some choose to work in cities and towns, and others will inevitably turn to 26  Zhang, Haoshou. High Investment: The Root Cause of the Difficulty of Increasing Farmers’ Income [J] Special Zone Economics, 2007 (12).

140 

W. CHEN

secondary and tertiary industries in rural areas, or seek employment and entrepreneurship in other fields, such as processing, sales, circulation of farm products, agricultural machinery services, and sci-tech services. This can promote the development of agricultural industrialization, and increase the added value of farm products while increasing the income of farmers. Based on this, we can conclude that labor-saving technological innovations are also conducive to enhancing agricultural output capacity, improving agricultural output level, and promoting the transformation of agricultural development mode. 2.2  Agricultural Mechanization and Agricultural Labor Productivity Agricultural mechanization represents an important direction of labor-­ saving technological innovations and a basic form of modern agriculture. It can effectively reduce labor intensity and greatly reduce labor use. Agricultural mechanization plays a revolutionary role in resisting natural disasters, promoting agriculture intensive management, reducing agricultural product costs, and increasing agricultural output and agricultural labor productivity. During the modernization of almost all developed countries in the twentieth century around the world, this revolutionary role has been fully reflected in transforming traditional agriculture and motivating modern agriculture, and thus was selected as one of the 20 engineering achievements that have had the greatest impact on life in human society in the twentieth century.27 As China faces a shortage of per capita farmland resources and has a typically small-scale farmer economic structure, especially in the years after the realization of the household contract responsibility system in the 1980s, the development of agricultural mechanization has been even slower. However, since the 1990s, with the changes in the ownership structure of agricultural machinery and the expansion of rural labor transfer, the pace of agricultural mechanization has been accelerating. According to relevant reports, since 1996, large-scale wheat cross-regional machine-­ harvesting services have been carried out, which has greatly improved the utilization rate and operational efficiency of combines, and successfully explored an effective way to solve the contradiction between small-scale 27  Ma, Yongqing. The Most Influential Engineering and Technical Achievements of the twentieth Century [J], Science, 2000 (06).

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

141

farm production and agricultural machinery scale operations.28 Since the promulgation and implementation of the Law of the People’s Republic of China on Promotion of Agricultural Mechanization in 2004, the Chinese central government has repeatedly stated the requirements for accelerating the promotion of agricultural mechanization, and continuously increased policy support for agricultural machinery subsidies, which effectively promoted the development of China’s agricultural mechanization. By 2010, the total agricultural machinery power of the country had reached 9.2 billion kW, and the comprehensive mechanization level of crop cultivation and harvesting in the country had reached 52.3%. A historical leap in agricultural production mode has been realized from relying on human and animal power to mechanical operation.29 2.2.1 Agricultural Mechanization Replaces Agricultural Labor The substitution of the agricultural labor force by agricultural mechanization is manifested in the fact that the high production efficiency of agricultural machinery far exceeds the production efficiency of the labor force, thus realizing the transformation of the alternative labor force. Studies have shown that in the farming process, the efficiency of manual work is only 0.02~0.30 hectares/day, and the efficiency of animal power is only about 0.05 hectares/day. If mechanized operation is taken up, a small tractor under 14.7 kW can complete 1.1–1.6 hectares/person/day. Furthermore, medium-sized tractors of 22.1 to 29.4 kW or 44.1 to 51.5 kW could complete 2 to 3.3 hectares/person/day. In the planting process of wheat and corn, human and animal operations is 0.13~0.2 hectares/ day. If mechanical operation is used, the efficiency of small machinery can reach 1~1. 33 hectares/day, and large machinery can reach 2~3.3 hectares/hour. In the harvesting process, the efficiency of manual operation of wheat and rice is 0.03~0.07 hectares/day. If we realize mechanization, a rice and wheat combine harvester can work 0.27~0.33 hectares/day. In the transportation sector, the efficiency of manual transportation is only 0.2 tons each time, while the transportation of small tractors can reach 1.5 tons each time, and the transportation of large tractors can reach 3~5 tons 28  Long, Jiwen. Sixty Years of Development of Agricultural mechanization in China [N], China Agricultural mechanization Guide, September 28, 2009. 29  Announcement of the Ministry of Agriculture on Publishing The Twelfth Five-Year Plan for the National Agricultural mechanization Development (2011–2015), Department of Farm Mechanization [2011] No. 6, September 22, 2011.

142 

W. CHEN

each time.30 Obviously, the efficiency of agricultural machinery is dozens or even hundreds of times greater than manual efficiency. In addition, compared with manual labor, agricultural machinery is a kind of material equipment which can work under harsh environmental conditions, and can be standardized and refined. Some modern agronomic techniques that are difficult to be realized by human beings can be implemented through agricultural mechanization, thereby surpassing agricultural labor and substituting for the agricultural labor force. The substitution of agricultural mechanization for labor force can be seen in the relevant data on China’s agricultural development in recent years. As shown in Table 4.1, Figs. 4.1, and 4.2, with agricultural mechanization in China continuously going up, the number of agricultural laborers has been declining since 1990, as has the proportion of employees of the primary industry in the total social employment. From 1990 to 2010, the total power of China’s agricultural machinery increased by 223.2%, and the comprehensive mechanization of farming-planting-harvesting increased by 30.8%, while the number of agricultural laborers decreased by 28.2%. The proportion of employees of the primary industry in the whole society dropped by 23.4%. To further clarify the above relationship, the following correlation model is established for empirical analysis. Based on the statistics of the total power of agricultural machinery and agricultural workers from 1990 to 2010 (see Table 4.1), a quantitative analysis of the relationship between the total power of agricultural machinery and agricultural employees has been carried out, and a regression model is shown: J = 42, 554.98 − 0.144 M t = 9.383 > t0.01  = 2.5177

F = 88.055 > F0.01(

1, 21)

= 8.02

J stands for the number of employees in agriculture; M stands for the total power of agricultural machinery. The regression analysis shows that the total power of agricultural machinery is significantly and negatively correlated with the number of 30  Sun, Hao. Relationship between Agricultural mechanization and Labor Flow [J], Agrotechnology and Equipment, 2011 (1).

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

143

Table 4.1  Agricultural mechanization level and employment of agricultural labor force from 1990 to 2010 Year

Total power of agricultural machinery (Ten thousand kW)

Comprehensive mechanization level of farming and harvesting (%)

Agriculture employment (Ten thousand people)

The proportion of employees in the primary industry to the total number of employees in the whole society (%)

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

28,707.7 29,388.6 30,308.4 31,816.6 33,802.5 36,188.1 38,546.9 42,015.6 45,207.7 48,996.1 52,573.6 55,172.1 57,929.9 60,386.5 64,027.9 68,397 72,522.1 76,589.6 82,190 87,496.1 92,780

21.5 22.7 24.8 24.1 25.0 25.9 29.4 28.0 30.4 31.6 32.3 32.2 32.3 32.5 34.3 36.0 39.3 42.5 45.8 48.8 52.3

38,914 39,098 38,699 37,680 36,628 35,530 34,820 34,840 35,177 35,768 36,043 36,399 36,640 36,204 34,830 33,442 31,941 30,731 29,923 28,890 27,931

60.1 59.7 58.5 56.4 54.3 52.2 50.5 49.9 49.8 50.1 50.0 50.0 50.0 49.1 46.9 44.8 42.6 40.8 39.6 38.1 36.7

Note: The data comes from China Labor Statistics Yearbook 2011 (China Statistics Press, 2012), China Statistics Yearbook 2011 (China Statistics Press, 2012), yearly Agricultural Mechanization Statistics Annual Report (Ministry of Agriculture of China), 60 Years of Statistics on New China Agriculture (China Agriculture Press, 2009)

agricultural employees, and the regression test of F is significant. Namely, the higher the total power of agricultural machinery, the lower the number of employed people in agriculture will be. Based on the statistics of comprehensive mechanization of farming-­ planting-­ harvesting, and the proportion of employees in the primary industry to the total number of employees in the whole society in 1990–2010 (see Table  4.1), a quantitative analysis of the relationship between the comprehensive mechanization of farming-planting-­harvesting and the proportion of employees in the primary industry to the total

144 

W. CHEN

100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0

(Year) Total power of agricultural machinery (10,000 kW)

Agricultural employment (10,000 people)

Fig. 4.1  China’s total agricultural machinery and agricultural employment from 1990 to 2010 70 60 50 40 30 20 10 0

% (Year) Comprehensive mechanization of farming-planting-harvesting

The proportion of employees in the primary industry to the total number of employees in the whole society

Fig. 4.2  China’s agricultural comprehensive mechanization tendency and the number of employees in the primary industry from 1990 to 2010

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

145

number of employees in the whole society has been carried out and a regression model is established thereon: D = 74.208 − 0.764G t = 16.823 > t0.01  = 2.5177

F = 283.009 > F0.01(

1, 21)

= 8.02

D is the proportion of employees in the primary industry to the total number of employees in the whole society, while G stands for the comprehensive mechanization of farming-planting-harvesting. Regression analysis shows that a significant negative correlation is revealed between the agricultural industry’s comprehensive mechanization of farming-planting-harvesting and the proportion of primary industry practitioners in the whole society, and the F test returns significantly. That is to say, the higher the level of comprehensive mechanization of farming-plantingharvesting, the lower the proportion of employees in the primary industry to the total number of employees in the whole society. Therefore, the practice of Chinese agriculture proves that agricultural mechanization has a prominent substitution effect on labor force. And it is also an inevitable choice to cope with the continuous transfer of rural labor force and promote sustainable agricultural development in China. 2.2.2

 gricultural Mechanization Promotes the Improvement A of Agricultural Labor Productivity Agricultural mechanization is the application of industrial technological achievements in agricultural production processes, which can effectively improve agricultural output. Compared with manual work, agricultural mechanization features high efficiency, high strength, and high quality, and can reduce natural risks and the loss of manual work at the same time. Studies have shown that mechanically transplanted rice output is more than 25 kg/0.067 hectares greater than manual transplanting, and the lodging resistance and disease resistance are significantly enhanced. Compared with manually spread wheat, the output of mechanized fine seedlings increases by about 50 kg/0.067 hectares. And combined wheat harvesting can reduce 5–8% loss.31 In addition, agricultural mechanization can reduce the cost of agricultural labor by reducing labor intensity and 31  Liu, Jingming. Agricultural mechanization and Labor Flow[J],Agro-technology and Equipment, 2010 (7).

146 

W. CHEN

labor time. For example, mechanical transplanting of rice saves an average labor cost of ¥30/0.067 hectares, and corn, rice, and rapeseed mechanical harvesting can save an average labor cost of ¥20, ¥40, and ¥60 respectively.32 At the same time, agricultural mechanization can also reduce the input of other agricultural factors and reduce the cost of other agricultural production materials. For example, when using machinery to sow wheat and corn, fertilizer can be applied to seeds 2 to 3 cm below, which not only ensures the normal germination of seeds, but also can save 30–50% of seeds and fertilizers; spraying pesticides with plant protection machinery can save 30–40% of pesticides.33 And using plant protection machinery to spray pesticides can save 30–40%. It is precisely because agricultural mechanization can increase agricultural output, reduce agricultural labor input, and save agricultural production costs that agricultural labor productivity can be greatly improved. In this regard, empirical data on agricultural mechanization improving agricultural labor productivity can be found in the process of China’s agricultural mechanization development (see Table 4.2). As shown in Table 4.2 and Fig. 4.3 that from 1990 to 2010, with the continuous improvement of agricultural mechanization in China, the total agricultural output value, agricultural added value, and agricultural labor productivity have been on the rise. The comprehensive mechanization level of farming-planting-harvesting has increased by 29.6%, while agricultural labor productivity has increased by 11.60%. Based on the statistics of the comprehensive mechanization level of farming-planting-harvesting and agricultural labor productivity from 1990 to 2010 (see Table 4.2), a quantitative analysis of the relationship between the comprehensive mechanization level of farming-planting-harvesting and agricultural productivity is conducted, and a regression model has been carried out in the formula: L is agricultural labor productivity G is the comprehensive mechanization level of farming-planting-harvesting

 Ibid.  Ibid.

32 33

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

147

Table 4.2  Agricultural mechanization level and agricultural labor productivity from 1990 to 2010 Year

Total power of agricultural machinery (10,000 kW)

Farming-­ planting-­ harvesting comprehensive mechanization (%)

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

28,707.7 29,388.6 30,308.4 31,816.6 33,802.5 36,118.1 38,546.9 42,015.6 45,207.7 48,996.1 52,573.6 55,172.1 57,929.9 60,386.5 64,027.9 68,397.8 72,522.1 76,589.6 82,190.4 87,496.1 92,780.5

21.5 22.7 24.8 24.1 25.0 25.9 29.4 28.0 30.4 31.6 32.3 32.2 32.3 32.5 34.3 36.0 39.3 42.5 45.8 48.8 52.3

Gross Agricultural Agricultural agricultural value added labor product value (¥100 million) productivity (¥100 million) (yuan/person)

7662.1 8157.0 9084.7 10,995.5 15,750.5 20,340.9 22,353.7 23,788.4 24,541.9 24,519.1 24,915.8 26,179.6 27,390.8 29,691.8 36,239.0 39,450.9 40,810.8 48,893.0 58,002.2 60,361.0 69,319.8

5062.0 5342.2 5866.6 6963.8 9572.7 12,135.8 14,015.4 14,441.9 14,817.6 14,770.0 14,944.7 15,781.3 16,537.0 17,381.7 21,412.7 22,420.0 24,040.0 28,627.0 33,702.2 35,225.9 40,533.6

1969.0 2086.3 2347.5 2918.1 4300.1 5725.0 6419.8 6827.9 6976.6 6855.0 6912.9 7192.5 7475.6 8201.2 10,404.6 11,796.9 12,777.1 15,910.0 19,383.6 20,893.1 24,818.6

Note: The data comes from China Labor Statistics Yearbook 2011 (China Statistics Press, 2012), China Statistics Yearbook 2011 (China Statistics Press, 2012), yearly Agricultural Mechanization Statistics Annual Report (Ministry of Agriculture of China), 60 Years of Statistics on New China Agriculture (China Agriculture Press, 2009)

L = −1, 4985.41 + 732.811G t = 26.720 > t0.01  = 2.5177

F = 713.969 > F0.01( ,

1 21)

= 8.02

The results show that the comprehensive mechanization level of farming-­planting-harvesting is significantly positively correlated with the increase of agricultural labor productivity, and the regression test of F test

148 

W. CHEN

Fig. 4.3  China’s agricultural mechanization, gross agricultural output value, and agricultural added value from 1990 to 2010

is significant. With the improvement of agricultural mechanization in China, agricultural labor productivity has increased significantly. Practice has proved that promoting agricultural mechanization is an important way to increase agricultural labor productivity. 2.3  Rural Human Resources Development and Agricultural Labor Productivity Among the factors of productivity, human beings are the decisive factor, because all the resource elements that are invested in economic activities need to be created by human resources. Adam Smith recognized this over 200 years ago: “Whatever be the soil, climate, or extent of territory of any particular nation, the abundance or scantiness of its annual supply must, in that particular situation, depend upon those two circumstances”.34 In today’s domestic and international practice, human resources, including scientific and technological progress, quality improvement of laborers, and management innovations, increasingly show their decisive role in economic development. Therefore, human resources, as the sum of the quantity and quality of the intellectual labor capacity and physical labor capacity, 34  Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations [M], Beijing: The Commercial Press, 1981.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

149

is considered to be the most precious resource of all, and it is the main source of accumulating and creating physical capital, developing and utilizing resources, and promoting the development of the entire national power of economy and social change.35 2.3.1

 he Decisive Role of Human Resource Development T in Promoting Agricultural Productivity Rural human resources are the sum of the quantity and quality of the manual and mental workers in rural areas. The number of rural human resources refers to the total rural population with labor capacity, and the quality of rural human resources includes comprehensive qualities such as knowledge level and technical expertise. This is called rural labor resources.36 Common sense dictates that, as long as one is a strong laborer, this is enough to be a good farmer. But in Schultz’s view, “The man who farms as his forefathers did cannot produce much food no matter how rich the land or how hard he works. The farmer who has access to and knows how to use what science knows about soils, plants, animals, and machines can produce an abundance of food though the land be poor. Nor need he work nearly so hard and long”. 37 As it is known to all, farmer is the central part of issues related to “agriculture, farmers, and rural areas” and has seriously affected the modernization process of China’s agricultural development. One notable factor is that, though China’s major farm products yield per unit area surpasses that of the world average, agricultural labor productivity is still far lower than that of developed countries.38 China’s basic national condition, a high proportion of rural population and a large number of rural human resources, determines that the biggest challenge for China’s agricultural development is rural human resources, yet this could also become China’s greatest advantage. Developing rural human resources is not only a key link to improve China’s agricultural labor productivity, but also a vital chance to promote the country’s agricultural transformation and development.

35  An, Yingmin & Wu, Qin. Human Resources Management [M], Beijing: The Central Party School Publishing House, 2004. 36  Yu, Yongde. On Rural Education [M], Beijing: People’s Education Press, 2000. 37   Schultz, Theodore W. Transforming Traditional Agriculture [M]. Beijing: The Commercial Press, 1987. 38   Jiang, Heping. What Road Should China’s Agriculture Modernization Take [J], Economist, 2009 (10).

150 

W. CHEN

Therefore, to solve the problem of China’s agricultural development and transformation and convert the heavy rural population pressure into a strong human capital advantage will ultimately depend on the effective use and development of rural human resources. The development of rural human resources, including the effective use of existing human resources in rural areas, and the development of potential human resources through the improvement of the quality of rural labor, is based on the premise of the market, combined with the driving force of the government, including effective measures to invest in human capital, regulate the supply of rural labor, improve the quality of rural human resources, improve the structure of labor supply and demand, improve the management of labor organizations, and promote the free flow of labor resources in urban and rural areas to fully mobilize the enthusiasm of workers.39 Before and after the founding of the People’s Republic of China, people were unable to shake off the fear of hunger, despite the effort that they made to increase farmland. Since reform and opening-up, while farmland has been continuously decreasing, the population has increased substantially and much farmland lies abandoned. However, owing to the increase in agro-technology and agricultural output per unit area, many people have ceased to fear hunger. By October 2011, over 60 years China’s population had grown drastically from approximately 400 million to over 1.3 billion since the founding of the People’s Republic of China. While China’s per capita farmland and per capita grain acreage have fallen by about half from 1960 to date, Chinese farmers’ per capita meat production and per capita grain production have increased by 26 times and 3 times respectively since 1961. Among them, the per capita grain supply has been doubled, the meat supply has increased by 12 times, and the supply of fruits and vegetable oil has increased by 14 times and 10 times. Now China’s food supply is essentially self-sufficient, and the self-sufficiency rate is around 98%.40How is the basic self-sufficiency of food achieved when the area of farmland has greatly reduced and the population greatly increased? This is because of the cultural popularization and comprehensive promotion of the “literacy” campaign since the founding of the People’s Republic of China, and the subsequent nine years of compulsory 39  Chen, Liuqin. Effective Measures to Strengthen Rural Human Resources Development [J], Modern Township, 2008 (11). 40  He, Chuanqi, China Modernization Report 2012: Agriculture Modernization Research [M] Beijing: Peking University Press, 2012.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

151

education. This has greatly improved the national food quality and enabled farmers to gradually master sci-tech in agricultural production. In consequence, agricultural labor productivity constantly exceeds historic levels. The positive effects of human resource development on agricultural production have also been confirmed in comparative analysis in some other countries. Israel’s agriculture is a model of modern agriculture. Comparatively speaking, China is a land of fish and rice with thousands of years of continuous farming history, while Israel is largely a desert of harsh climate and arid land. Chinese farmers have been farming for generations, but Israeli farmers are immigrants from all over the world, many of whom had not been engaged in agriculture before coming to Israel. However, compared to Chinese farmers, Israeli farmers have received better higher-­ education. Likewise, the United States has advanced agricultural modernization, well-developed agro-technology, and high-quality farmers. It can be assumed that, if the advanced machinery and agro-technology and the fertile and vast farmland of the United States were transferred to a country that has high illiteracy rate, the status quo of agriculture would not be changed, because it is impossible to adopt the advanced American machinery and advanced technology. The gap in agricultural development between China and the United States and Israel is not the gap between market system and modern equipment, but rather that between the qualities of agricultural labor that contain modern factors such as sci-tech. Thus, human resources are the basic resources for improving agricultural labor productivity, and the only resource in rural areas that can activate the vitality of other resources and play a decisive role in agricultural development. 2.3.2

I mproving the Workforce Quality Is the Key to Developing Rural Human Resources Simply put, human resources are a human being’s own attributes, while human capital represents the quality of labor and its ensuing creativity. Improving the quality of the workforce can simultaneously improve the creativity of workers. Therefore, human capital emphasizes human intelligence and its potential, focusing on the social attributes of human beings. Human capital theory believes that human resources cannot be automatically converted into human capital. It is necessary to invest in human resources before this can be converted. The greater the investment, the greater the stock of human capital will be. Furthermore, investment in education is the key point to human capital and to improving the quality

152 

W. CHEN

of the labor force, and its rate of return is much higher than the rate of return of physical capital.41 With regard to the significance of investing in the development of human resources to improve the quality of the workforce, Schultz made an momentous discovery in agricultural development in the early twentieth century: “The decisive factors of production in improving the welfare of poor people are not space, energy and cropland; the decisive factor is the improvement in population quality”; “transformation of traditional agriculture is an investment problem, mainly human capital investment”; “Truly, the most distinctive feature of our economic system is the growth in human capital”. In summary, Schultz believes that the main reason for rapid growth is not the increase in land, labor, and capital stock, but the increase in people’s knowledge and skills.42 Lucas and Romer further incorporate human capital as an intrinsic economic development factor in the economic growth model, and create a new economic growth theory. The critical point is to emphasize the importance of human capital to regional economic growth, especially for under-­developed countries, and the importance of regional economic growth. In their neo-­ economic growth theory, the human capital formed by improving the quality of labor through the development of human resources is the leading driving force of economic growth, and its stock level is of decisive significance for the development of economically backward regions.43 American management scientist Michael Porter has studied more than ten countries and areas, including Japan, South Korea, and Taiwan. After a comparative analysis of the regions, it was found that the common factor of the extensive industry in the eighteenth and nineteenth centuries is a low-level production factor at work. In the modern era, in some countries with no resources, no low-cost labor (the United States), and scarce resources (or even natural disasters such as earthquakes and tsunamis in Japan), agriculture can develop rapidly. The key is to have advanced production factors like human capital.44 Farmland in the United States has 41  Hu, Fanrong. Rural Human Capital Development and Cultivation of New Farmers [J], Journal of Jiangxi Agro-sciences, 2008 (1). 42  Schultz, Theodore W. Investment in Human Capital [M], Beijing: Beijing Institute of Economics Press, 1990; Schultz, Theodore W. Transforming Traditional Agriculture [M]. Beijing: The Commercial Press, 1987. 43  Lucas, R. E. Jr. On the Mechanism of Economic Development [J], Journal of Monetary Economics, 1989 (4); Romer, David. Increasing Returns and Long-Term Growth [J] The Journal of Political Economy, 1986 (94). 44  These views are mainly from: Porter, Michael. The Competitive Advantage of Nations [M], Li, Mingxuan & Qiu, Rumei (Trans.), Beijing: Huaxia Publishing House, 2002.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

153

decreased, but its agriculture has also developed rapidly. The high-quality labor as a result of investment in human resources plays a decisive role. The quantitative data analysis in the practice of agricultural development in China can highlight the relationship between the quality of rural labor and agricultural productivity. Based on the statistics of rural labor force and agricultural labor productivity in China from 1990 to 2010 (see Table 4.3), a quantitative analysis of the relationship between rural labor education and agricultural labor productivity has been carried out, and we establish a regression model thereon:

Table 4.3  Rural labor force quality and agricultural labor productivity from 1990 to 2010 Year

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Agricultural labor productivity (yuan/person)

1969.0 2086.3 2347.5 2918.1 4300.1 5725.0 6419.8 6827.9 6976.6 6855.0 6912.9 7192.5 7475.6 8201.2 10,404.6 11,796.9 12,777.1 15,910.0 19,383.6 20,893.1 24,818.6

Rural laborer education status (%) Lack of literacy or literacy

Primary school

Junior high school

Senior high school

Secondary school

University and above

20.73 16.91 16.20 15.29 14.68 13.47 11.23 10.10 9.56 8.96 8.09 7.69 7.59 7.39 7.46 6.87 6.65 6.34 6.15 5.94 5.73

38.86 39.54 39.05 38.21 37.19 36.62 35.52 35.11 34.48 33.66 32.22 31.14 30.63 29.94 29.20 27.23 26.37 25.76 25.30 24.67 24.44

32.84 35.23 36.21 37.43 38.59 40.10 42.83 44.31 44.98 46.05 48.07 48.89 49.33 50.24 50.38 52.22 52.81 52.91 52.81 52.68 52.44

6.96 7.60 7.82 8.20 8.51 8.61 8.91 8.91 9.15 9.37 9.31 9.65 9.81 9.68 10.05 10.25 10.52 11.01 11.40 11.74 12.05

0.51 0.59 0.60 0.70 0.82 0.96 1.20 1.24 1.46 1.57 1.83 2.02 2.09 2.11 2.13 2.37 2.40 2.54 2.66 2.87 2.93

0.10 0.13 0.12 0.17 0.21 0.24 0.31 0.33 0.37 0.39 0.48 0.61 0.56 0.64 0.77 1.06 1.25 1.45 1.68 2.10 2.41

Note: The data comes from China Labor Statistics Yearbook 2011 (China Statistics Press, 2012), China Statistics Yearbook 2011 (China Statistics Press, 2012)

154 

W. CHEN

L = −17, 299.41 + 2, 217.569W t = 16.136 > t0.01  = 2.5177 F = 260.359 > F0.01(

1, 21)



= 8.02

Here: L is agricultural labor productivity; W is the proportion of the rural labor force with high school education or above. The results show that there is a significant positive correlation between the number of rural laborers with high school education or above and agricultural labor productivity, and the regression effect of F test is significant. This shows that the higher the rural laborer’s education, the higher the agricultural labor productivity. Obviously, the effective way to improve the productivity of agricultural labor is to promote the development of rural human resources by improving the quality of the labor force. With the gradual improvement and perfection of China’s market economy system and the gradual transformation of traditional agriculture, agriculture producers have rid themselves of self-sufficient production methods and entered the development stage of market-oriented and commercialized production. In this period, the targets of government services changed from traditional small farms to specialized modern farms, and its focuses were, therefore, shifting from promoting scientific and technological innovations and materializing technological innovations to improving the qualities of manufacturers and managers. This is because the innovations of agro-sci-tech should be reflected in the specific practice of agricultural production, adopted by one farmer after another. Agricultural productivity can be truly improved only by improving the quality of farmers, giving them chances to become masters of modern sci-tech, and making agricultural scientific research functional in production practice. Germany’s manufacturing industry is unique among developed countries, thanks to the dual-system education that has effectively trained German craftspeople. Students in the German dual system learn cultural lessons, on the one hand, and study engineering on the other. Children master numerous skills after the age of 16 and become excellent technicians.45 China’s agriculture is also a technical activity. If it is part of the  Lu, Jinyuan. Dual Vocational Education in Germany [J], Today Hubei, 2000 (11).

45

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

155

country’s compulsory education stage, schools can add courses like agro-­ sci-­ tech knowledge, which would greatly help those who eventually become agricultural laborers. In fact, the cultivation of modern agriculture cannot be separated from high-quality agricultural laborers. For example, Longping Yuan’s super rice requires the combination of light/ heat and water/soil to produce the maximum output, and the best ratio of light/heat and water/soil demands high-quality farmers to participate. Even with the same variety, the output varies greatly because of different participants. The key lies in the differences between scientific and technological qualities, especially professional skills. To this end, the annual Central Rural Work Conferences and No. 1 Central Documents have proposed training for farmers, specifically cultivating professional agricultural skills. This is a strategic decision to promote rural human resources development and accelerate the modern transformation of agriculture. With such a huge population and potential for increased rural human resources, the creativity generated after development would be truly impressive. Only by promoting the development of rural human resources and cultivating high-quality agricultural laborers can we cope with the bottleneck of agricultural human resources brought about by the hollowing out of rural areas in the process of urbanization. This would transform traditional agriculture development by relying mainly on increasing the consumption of material resources for modern agriculture, which relies essentially on the quality of laborers. 2.3.3

 ptimizing the Allocation of Agricultural Human Resources O and Releasing the Creativity of the Laborer When discussing the issue of human resources, Marx calls the optimal allocation of human resources “the flow of labor” and the labor that flows to cities from rural areas as “the migrating population”. The scale and quantity of rural labor flows to cities is one of the important signs of a country or region’s modernization. With the continuous advancement of China’s industrialization and urbanization, the scale and quantity of rural labor flows to cities, industries, and service industries continue to expand. It is imperative that new systems and mechanisms for agriculture human resource allocation replace traditional agriculture systems and mechanisms. In a market economy, the flow of labor among various departments is first a matter of individual self-issuance. Based on the formation of average profit, labor flow always goes from low-profit sector to high-profit

156 

W. CHEN

sector.46 Therefore, the optimal allocation of human resources is more a conscious act of the governments or enterprises, and is the process of selecting, arranging, and rearranging labor resources among various possible production uses to obtain the greatest efficiency.47 Thus, to optimize the allocation of agricultural talents is to adjust and improve the spatial relationship between agricultural talents and agriculture material resources within the whole society, as well as to realize the organic combination of humans and nature, and to promote the sustainable development of agricultural economy, rural society, and eco-­ environment. The process of optimizing the allocation of agricultural talents is not only the process of utilizing agricultural labor, but also that of improving the effectiveness of the combination of agricultural labor and agriculture material resources to accelerate agricultural development.48 In essence, to optimize the allocation of agricultural talents is to release the main body of agricultural laborers, promote the realization of the self-­ value of agricultural workers, and realize the self-development and social development of workers. The fundamental purpose is to give full play to the positive effects of labor and maximize the creativity of the workforce to achieve the development and effective use of human resources. Therefore, we must break down the dual system in urban and rural areas, give play to the decisive role of market mechanisms in allocating agricultural talents, and establish balanced exchanges through price mechanism, competition mechanism, and the supply and demand mechanism, so that agricultural talents and other various resources can be best allocated based on the principle of maximum benefit. To optimize the allocation of agricultural talents, the market operation mechanism, which is based on economic force, and the government management mechanism, which is based on administrative enforcement, must be constructed. The construction and improvement of the market operation mechanism is the center of the optimal allocation of agricultural talents. To truly 46  The Complete Works of Marx and Engels (Volume 26 (I)) [M], Beijing: People’s Publishing House, 1973; The Complete Works of Marx and Engels (Volume 46(II)) [M], Beijing: People’s Publishing House, 1979. 47  Du, Weixuan. The Policy Choice of Rural Human Resources Optimization Allocation from the Perspective of Sustainable Agricultural Development [J], Journal of Shijiazhuang University of Economics, 2012 (1). 48  Xue, Yanping. Optimizing the Spatial Allocation of Human Resources to Accelerate the Modernization Process in Hebei [J], Journal of Hebei Youth Administrative Cadres College, 2000 (1).

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

157

enable the market to play a decisive role, it is necessary to strengthen the competitive incentive mechanism based on a two-way selection mechanism, and the income distribution mechanism based on the supply and demand mechanism. The integrated urban-rural labor market is an effective way to combine the flow of social labor with agricultural resources. As a hub connecting urban and rural human resources, the integrated urban-­ rural labor market promotes human resources to conduct “two-way selection, equal competition, and optimal combination” in the national unified labor market of urban and rural areas, industrial or agricultural, which reflects the market equality of urban and rural human resources in fair exchanges49 and promotes the two-way exchange of urban-rural human resources. It is necessary to promote the flow of not only potential human resources in urban and rural areas, but also the idle human resources, so that agricultural talents can be optimally allocated in the dynamic labor market, whose prices are determined by supply and demand and resource allocation efficiency. In this way, agricultural talents, the major portion of the labor market, can best display the value of self-realization. The perfection and improvement of the labor management integrating urban and rural areas is the key to promoting the optimal allocation of agricultural talents. Under the premise of determining the allocation of agricultural talents by the market mechanism, the government’s administrative management system based on law and policies is of vital importance, because it makes up for the shortcomings of the market mechanism and reduces the spontaneity and blindness of social labor mobility. Due to the institutional barriers between urban and rural areas, China’s rural labor force and urban labor force do not receive equal national treatment. The most prominent manifestation is unequal treatment of public goods supply, social security system, household registration system, and employment system, which hinders both urban and rural society. In addition, by artificially separating the urban and rural laborers into their own areas, it is also hard for laborers to function creatively and properly, making it difficult for agricultural talents to be optimally allocated and resulting in low agricultural labor productivity for a long period. Therefore, to eliminate institutional barriers, we must promote various rural reforms, especially the household registration system, under the overall goal of urban-rural integration. This requires establishing a unified urban and rural labor 49  Xu, Xiaohua. On the Theoretical and Realistic Thinking of Human Resource Allocation of Market Economy[D], Central China Normal University, 2004.

158 

W. CHEN

market policy and regulation system, social service system, equalized supply system for public products, and social security system. This will provide institutional guarantee for the orderly and rational allocation and fair exchange of urban and rural social talents.

3   Resource-Conserving Technological Innovations and the Improvement of Resource Utilization Rate and Land Output Rate One major strategic issue in transforming China’s agricultural development is improving resource utilization and land output rates by promoting resource-conserving technological innovations. Therefore, based on China’s national conditions, it is imperative to accelerate technological innovations in agricultural resource conservation, especially the conservation of land resources and alternative technologies, to develop various forms of “resource and ecologically sound agriculture”, centering on improving the utilization rate and utilization efficiency of resources in the agricultural production field, enhancing the comprehensive agricultural production capacity and eco-environment construction. 3.1  Trends in Resource and Technology Endowments in the Context of Industrialization and Urbanization According to Yujiro H. and Vernon W. Ruttan’s theory of induced technological change, the imbalance of factors relative to price or product demand changes will lead to change and innovations in technology.50 That is to say, if the agricultural development of a country or region is constrained by the resources and the environment, this constraint can be broken through technological progress. At present, industrialization and urbanization are rapidly advancing in China, leading to a shortage of supply and demand for agricultural resources. Agro-scientific and technological innovations must face the problem of insufficient supply of agricultural natural resources and creating more technology pathways to replace land and water resources. Besides, as industrialization and urbanization bring about insufficient supply of regional and structural human resources, it is 50  Yujiro, Hyami, Uttan, Veron W. & Southworth, Herman Mc-Do-Well. Agriculture Growth in Japan, Taiwan, Korea and the Philippines [M], Honolulu: The University Press of Hawaii, 1979.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

159

necessary to choose the technological pathways of agricultural machinery to replace workforce. Therefore, the link between agricultural resources and the development of agro-technology is becoming increasingly strong, and the changes in agricultural resources and technology endowments are gradually growing more complex. The trend is as follows. 3.1.1

 he Shortage of Agricultural Resources Has Increased T and the Rapid Development of Conservation Technologies and Alternative Technologies for Agricultural Resources Has Been Induced On the one hand, because the utilization rate of agricultural resources is lower than that of industry and the comparative benefits are poor, much agricultural resource flow to industries and towns and the absolute amount and relative amount of agricultural resources are insufficient. For example, as more and more farmland gives way to industrialization and urbanization, China’s farmland resources become increasingly scarce. On the other hand, with the development of industrialization and urbanization, rural areas are forced to be part of the national market. As a result, farmers’ work and life are more and more commercialized, and agricultural resources are more and more marketized, resulting in high costs of industrialization and urbanization. If the price of land resources continues to rise, it will increase not only the costs of industrialization and urbanization, but also those of agriculture. At the same time, the pay for rural talent will rise with the increase of commercialization and the cost of living following urbanization. On the whole, the agricultural resources will experience an upward trend for a long period in the process of industrialization and urbanization. Therefore, the shortage of agricultural resources and the rising price of agricultural resources will lead to the rapid development of agricultural resource-conserving and resource-replacing technologies. Agro-technological innovations will accelerate with the need to adapt to the rapid development of industrialization, urbanization, and agricultural modernization. 3.1.2

 he Sharp Decline in the Quality of Agricultural Resources Has T Led to Rapid Innovations in the Protection and Restoration of Agricultural Resources In the acceleration of industrialization and urbanization, because of the low original price of agricultural resources, the quantity and quality of agricultural resources has dropped sharply due to extensive and excessive exploitation. So the ability of agricultural resources to support the

160 

W. CHEN

development of modern agriculture has been weakened day by day. For example, because of the excessive use of land, there is a decline in fertility and land productivity and an increase in soil pollution, due to over-­ exploitation. Besides, the depletion and pollution of water resources cause the quality of agricultural resources to decline or even become nonresources. At the same time, the decline in the quality of agricultural resources has led to the acceleration of protection technology and restoration technological innovations to maintain the sustainability of agricultural production. For example, the development of modern biotechnology provides technical support for the improvement of agricultural resource quality and utilization. 3.1.3

 he Modern Adaptability of Agricultural Resources Induces T the Development of Agro-Technological Innovations There are adaptive problems in developing agricultural resources and modern agriculture. Different levels of industrialization and urbanization require different quantities and quality of resources to adapt to them. When resources are not compatible with the level of industrialization and urbanization, the demand for those resources often induces technological innovations, and thus agricultural modernization. When traditional agricultural resources do not adapt to the development of modern agriculture, agro-technology is innovated under the influence of its adaptability. For example, in the development of the seed industry, the cultivation of improved varieties is due to the needs of modern social development. New agricultural technologies produced by selectively improving seed traits and cultivating seeds to meet social needs are adapted to the needs of agricultural resources development and human development, and are also the right response to sustainable development. Therefore, in the rapid development of industrialization, urbanization, and agricultural modernization, the induced changes and innovations of agro-technology will adapt to the objective requirements of social development. In the present era, the main drivers for agro-technological innovations are the development of land-conserving technologies and alternative technologies and the improvement of land resource output rates. In consequence, it is necessary to start with the resource-conserving technological innovations and explore the agro-technological innovation path in line with the actual conditions of each region, so as to give full play to the comparative advantages of various regions and promote the transformation of agricultural development mode.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

161

3.2  Accelerating Land-Conserving Technological Innovations Based on Biotechnology to Increase Land Output Rate Agro-technology based on biotechnology is key to saving land and increasing output. Biotechnology, also known as bioengineering, is a complex technology cluster. In 1982, the Organisation for Economic Cooperation and Development considered that biotechnology applied the principles of natural sciences and engineering, using microbes, animals, and plants as reactors to process materials to provide products for social services, which included genetic engineering, cell engineering, fermentation engineering, protein engineering, and enzyme engineering. Agricultural biotechnology is a tool that uses modern genetics to enhance the beneficial properties of plants. It not only saves land and improves land production efficiency, but also solves food supply problems. It can provide effective production methods and technical support for modern agriculture.51 3.2.1

 ccelerating Land Use Management Technological Innovations A to Adapt to “Resource and Ecologically Sound Agriculture” and Realizing Land Saving As industrialization and urbanization are competing for land against agriculture, to accelerate technological innovations and save land resources, we must improve the corresponding management technology. First, we must improve land use control technology for construction land in major industries, and scientifically define the planning control indicators and land quotas for construction sites of different types, different industries, and different scales. Second, we must make innovations in land-saving control technology. These technological innovations will accelerate the planning of land use standards, land use landscape compounding, and optimal allocation, mixed land use allocation, land use space zoning, and regulation. Third, we must accelerate innovations in land-conserving engineering technology. This includes the engineering technology, new materials and processes of underground space construction, new walls of composite housing, composite materials, and pile foundation structure technologies. Only by establishing a sound research and development system for land-conserving technology can innovations be guaranteed. 51 1   Li, Xunhua, Yang, Yongming & Shu, Zetao. Enlightenment and Learning of Japan’s Agricultural development to Chinese Agricultural Producing Methods [J], Rural Economy, 2008 (11).

162 

W. CHEN

3.2.2

 ccelerating the Biotechnology in Restoring and Utilizing A Degraded Land and Saving Land Innovatively Taking degraded land, disaster-stricken land, polluted land, and mining subsidence land as the main targets for development, we should speed up the technological innovations of ecological restoration, consolidation, and utilization of degraded wastelands. Moreover, the research on bioremediation technology of polluted land should be increased, and the key technologies for biological restoration of land reclamation in subsided areas have to be advanced. In sum, a wasteland monitoring system and a biotechnology restoration and innovation system for the restoration and reuse of degraded wasteland should be established. 3.2.3

 ccelerating the Bioremediation of Contaminated Soil A to Improve the Comprehensive Production Capacity It is important to advance biotechnological innovations for soil pollution remediation. Relying on bioremediation technology, the soil contaminated by heavy metals will be repaired through purifying or reducing heavy metals. It is also crucial to change the chemical forms of heavy metals through biotechnology, reducing their mobility and bioavailability in the soil, and achieving the purpose of reducing, purifying, and fixing heavy metals in the soil. Bioremediation will increase the organic matter in the soil to stimulate the activity of micro-organisms, improve the ecology structure of soil, and prevent soil erosion.52 3.2.4

 ccelerating Biotechnological Innovations to Purify Soil A and Improve the Quality of Farm Products One way to achieve this is to eliminate white pollution, or plastic pollution, in the soil. This is done to increase the resolution of waste plastics and agriculture mulch films and improve the quality of land production through biotechnology. The second way is to eliminate chemical pollution and pesticide pollution in the soil. We should try innovative mineralization technology to decompose pesticides and convert pesticides into metabolizable intermediates with innovative cometabolism, eliminating residual pesticides from the environment. Genetic engineering techniques are used to modify micro-organisms known to have a degrading effect on pesticides, and to change their biochemical reaction pathways. The third way is 52  Li, Fayun, Qu, Xiangrong & Wu, Longhua. Theoretical Basis and Technology for Bioremediation of Contaminated Soil [M], Beijing: Chemical Industry Press, 2006.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

163

to increase the promotion and use of biological pesticides. Biological pesticides use organisms or their metabolites to control harmful animal and plant populations. This will greatly reduce the degree of damage, and thus replace pesticides to reduce pesticide residues and improve the quality of farm products. To fundamentally solve the problem of pesticide abuse, it is necessary to develop biological pesticide varieties based on the production needs of pest control and establish an incentive mechanism for the promotion and application of biological pesticides. 3.2.5

I nnovating Water Conservation Technologies to Make Full Use of Arid Land and Improve Land Utilization First, we must innovate the water-saving agro-technology system. It is necessary to speed up technological innovations in farmland engineering and fertilization, agronomy and agricultural machinery, rainwater harvesting and drought relief, farming and meteorology, facilities and services, and fund management and personnel organization, and establish a water-­ saving agro-technology system suitable for China’s national conditions. Second, we must innovate agricultural water-saving engineering technology. We need to promote irrigation by dry land pipelines; speed up the introduction, testing, and demonstration of drip irrigation under the membrane; and improve the automation and smartness of land irrigation. Finally, efforts should be made to improve the operational mechanism for water-saving agriculture. We must take important strategic steps to improve the administrative, legal, scientific, and economic means of developing water-saving agriculture, and improve the security system for water-­ saving agricultural development.53 We need to combine water-saving agriculture with land conservation and land-intensive use so as to improve land output rate. 3.3  Accelerating Innovations in Biological Breeding Technology to Increase Land Output and Resource Utilization The key to agro-technology lies with biotechnology, while biological breeding is the focus of biotechnology. “A seed can change a world!” The expansion, pertinence, and efficiency of biological breeding have led to many changes in traditional breeding methods. The history of agricultural 53   Yu, Ting. Promoting Resource-Conserving Agro-technology[N], Economic Daily, February 12, 2007.

164 

W. CHEN

development shows that, since human society has entered the era of farming civilization, genetic improvement of crops has never stopped. Modern biological breeding technology is one of the most effective technical ways for humans to improve crops. Biological breeding technology is in line with traditional breeding techniques. Essentially, excellent varieties are obtained through gene transfer. However, biological breeding techniques can break the boundaries of species, achieve more precise, rapid, and controllable genetic recombination and transfer, improve breeding efficiency, and lead the new direction of modernization of agricultural development. Therefore, we must focus on accelerating the innovation and promotion of crop breeding technology and improve land output and resource utilization through breakthroughs in biological breeding technology. 3.3.1

 elying on Biological Breeding Technological Innovations R to Improve Land Output Is an Inevitable Choice for a Populous Country Faced with a growing population and declining farmland, China must solve the problem of feeding 1.4 billion people, and the only way is to rely on biological breeding techniques to increase land output. Traditional agriculture has two ways to increase output: one is to spray pesticides, and the other is to apply fertilizer. Practice has proved that the effect of these two methods is obvious. However, it should be clear that such an approach is unsustainable and costly, and has a damaging impact on resources, environment, and even human health. As the materialized result of breeding technological innovations, excellent plant varieties are an important material basis and technical carrier for improving output and ensuring effective supply of farm products, as well as an important guarantee for improving resource utilization and saving resources. At present, scientific and technological innovations in the seed industry have become one of the main methods in international agriculture and even in global economic competition. Developed countries such as the United States have formed a number of large-scale multinational seed companies that integrate genetic operations, variety selection, seed production, and marketing. On the one hand, powerful foreign seed industry groups continue to increase research and development investment and technological innovations, and spare no efforts for the acquisition of seed enterprises worldwide at the same time, and thus a scenario of monopoly around the world seed market has gradually formed. The seed industry can control not only the agricultural lifeline of a country, but also people’s lives. Therefore, in order to increase the

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

165

output rate of land while addressing the shortage of resources and the increasing demand for food, biological seed breeding must be increased. We must rely on the power of agricultural biotechnology to improve the quality of products. This is a strategic as well as inevitable choice. 3.3.2

 ccelerating the Integration of Biotechnology and Traditional A Breeding Technologies to Improve Resource Utilization and Land Output To greatly develop biological breeding as a strategic emerging industry, China must aim at the frontiers of agricultural high-tech development, and work hard on high-tech research on plant molecular breeding such as transgenic, molecular marker, and cell engineering to obtain a number of new varieties with independent intellectual property rights.54 The potential of heterosis should be further exploited through new molecular techniques, and the combination of biological breeding and traditional Chinese breeding techniques also deserves attention. It is necessary to continue to focus on high-yield, high-quality, disease-resistant, and stress-resistant crops, and gradually strengthen the technological innovations in property improvement such as nutrient-efficient use, suitability for mechanized operations, and product functionalization. While improving the resistance and stability of new varieties, we will increase technological innovations in crop production environment so that the crop production can adapt to medium- and low-yield fields and satisfy mechanized operations, and the added value of crop production will also increase. 3.3.3

I ncreasing Breakthroughs in Key Technological Areas of Biological Breeding According to the stage and characteristics of the development of the biological breeding industry, while developing overall plans, system layout, and coordination, we will select the most basic and qualified areas to make key breakthroughs and accelerate the formation of competitive advantages. Special attention should be given to the development of modern agricultural biological breeding industries, including food crops, vegetables and flowers, and livestock and poultry, so that a complete industrial chain, consisting of basic research on biological breeding, technology application 54  Department of Science, Technology and Education of Ministry of Agriculture, “Twelfth Five-Year Plan” for Agro-sci & tec Development (2011–2015) [J], Chinese Township Enterprises, 2012 (6).

166 

W. CHEN

research, and industrial demonstration and promotion can be formed. Efforts will be made to enhance the capability of independent innovations so that the technological innovation system, which is enterprise-­led, marketoriented, and production- education-research-­combined can be completed. To build a support system for industrial innovation, it is high time to improve enterprise technological innovation capability.

4   Technological Innovations of Agro-­environmental Protection, Conservation of Factors of Production, and Sustainable Agricultural Development Under the new situation, China’s agricultural modernization must break through the traditional mode of relying on the input of petrochemicals, such as chemical fertilizers and pesticides, to obtain agricultural output and economic growth. Technological innovations of agro-environmental protection should be promoted in line with reasonable institutional arrangements. On the basis of full employment of scientific knowledge and technology, we should focus on the development and application of technologies that enhance agronomic efficiency, and ensure human health and eco-environment, so that we can achieve efficient, economical, and eco-friendly use of production factors. Thus we can control the growing agricultural non-point sources pollution at its source, and properly handle the rural environment to promote rural modernization and healthy and sustainable agricultural development. 4.1  Rural Technological Innovations of Environmental Protection Are an Important Guarantee for Saving Production Factors and Sustainable Agricultural Development At present, China’s agricultural industry structure, variety structure, technological structure, and employment structure are accelerating the pace of adjustment, and the agricultural ecosystem is becoming more and more complicated. On the one hand, the openness of the agro-ecosystem is increasing, as the traditional planting and breeding-led agricultural system is adjusting rapidly and comprehensively to the primary, secondary, and tertiary industries. The industrial chain of the agricultural ecosystem continues to expand. On the other hand, the agro-ecosystem boundary is

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

167

shrinking, and sustainable agricultural development is facing increasingly severe agricultural non-point sources pollution. Promoting the optimal combination and efficient utilization of agricultural production factors through technological innovations of environmental protection has become a leading issue in relation to the economic, social, and ecology benefits of agriculture. 4.1.1

I t Is Realistic to Solve the Agricultural Non-point Sources Pollution Caused by Extensive Investment in Production Factors with Rural Technological Innovations of Environmental Protection In the process of industrialization and urbanization in China, due to outdated agricultural infrastructure, low agricultural efficiency, insufficient promotion and application of agro-sci-tech, and the continuous transfer of high-quality labor to the secondary and tertiary industries, most farmers have long adopted extensive farming, relying on manpower and high investment in petrochemicals, such as fertilizers and pesticides, to obtain agricultural income. This has caused an increasingly serious problem of agricultural non-point sources pollution. Statistics show that in 2010, China’s agricultural film use increased by 3.5 times compared with 1990, at an average annual increase of 17.54%.55The use of agricultural film in Hunan Province has been increasing at an average annual rate of 5.41%.56The agricultural film remaining in the soil after degradation is deteriorating the physical and chemical properties of the soil. The application rate of pesticides and chemical fertilizers is also on the rise. The national average level of fertilizer input density has exceeded the internationally recognized safety limit of 225 kg/hectare for fertilizers to prevent water pollution.57 The organic resources of agriculture itself have not been effectively utilized, and this has become an important cause of pollution. In 2010, the comprehensive utilization rate of straw in China was only 70.6%.58 In 2008, the utilization rate of straw resources in Hunan Province 55  Data Sources: Department of Rural Surveys of National Bureau of Statistics. China Rural Statistical Yearbook 2011 [M], China Statistics Press, 2011. 56  Data Sources: Hunan Rural Statistical Yearbook 2011 [M], Village Economies Survey Party of Hunan, 2011. 57  Li, Jing & Li, Jingyu. Fertilizer Using Efficiency of China’s Grain Production and Its Determining Factors [J] Research of Agricultural Modernization, 2011 (5). 58  Notice for the Implementation Plan for the Comprehensive Utilization of Crop Straw in the Twelfth Five-Year Plan [J] Contemporary Rural Finance and Economics, 2012(2).

168 

W. CHEN

was only 56.09%.59A large amount of straw resources was wasted or directly incinerated, which has led to rural air pollution. Manure from livestock and poultry farming has not been effectively treated and poses a serious environmental pollution challenge. In 2012, China’s large-scale chemical oxygen demand and ammonia nitrogen emissions were 10.99 million tons and 630,000 tons, accounting for 45% and 25% of the total national emissions that year, and 95% and 78% of the total agriculture discharge, respectively, more than three and four times the rate of industrial sources in the same year respectively. The overall land load warning value for livestock manure has reached 0.49 (normal value should be less than 0.4).60 The agricultural non-point sources pollution caused by the irrational use of agricultural production materials affects people’s living space in an all-round way, forming “three-dimensional pollution” from the atmosphere, soil, and water bodies, and destroying environmental quality. These factors mean realistic and urgent needs for technological innovations of rural environmental protection. It is imperative to curb agricultural environmental destruction and restore natural geographical features and ecosystems by adopting eco-friendly industrial technology and ecology restoration technological innovations, so that China can build a good agro-ecosystem. It is also imperative to accelerate the establishment of low-energy and eco-friendly agricultural production systems by adopting technological innovations, such as information technology, biotechnology, farming technology, and water-saving irrigation technology, to improve the effective utilization of production materials. Lastly, a sound agricultural circulation system is to be constructed by way of innovating environmental protection technologies of rural practical living and making full use of the geographical advantages and biomass energy advantages, so that the utilization efficiency of rural ecological resources can be improved, harmless agricultural industries can be developed, and regional circulation of agricultural production can be achieved.

59  Gratifying is the Prospect of Comprehensive Utilization of Straw [N], Hunan Daily 2009-08-29. 60  Kong, Yuan. Understand Accurately Regulations on Prevention and Control of Livestock and Poultry Scale Pollution to Promote the Sustainable and Healthy Development of Livestock and Poultry Breeding Industry [J], Swine Industry Outlook, 2014 (4).

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

169

4.1.2

 ural Technological Innovations of Environmental Protection R Are an Important Way to Reduce the Input Cost of Production Factors and Improve the Economic Benefits of Agriculture China’s agriculture has now entered the era of high production costs, and the increase of output per mu is lower than the input per mu, such as grain, oilseeds, and vegetables. The increase in the amount of input per mu has significantly reduced the rate of return. The increased direct production costs are the main factor driving up the total cost of agricultural production, such as fertilizer, agricultural film, pesticides, and machinery operations, accounting for more than 80% of the total cost.61 The cost of agricultural production has increased year by year, which has reduced the comparative benefits of agricultural production and raised the prices of major farm products. Some farm products prices have even exceeded the international market and reduced their international competitiveness. The main reason is not only the low quality of farmland resources, but also the low quality of labor resources. On the one hand, the utilization efficiency of agricultural production factors is low. For example, the effective utilization coefficient of agricultural water in China in 2010 is only about 0.5, while in advanced countries it is above 0.7.62 Agricultural wastes, such as livestock manure and straw, have not been effectively utilized. On the other hand, farmers are heavily dependent on the input of agriculture chemicals, such as chemical fertilizers and pesticides. In recent years, taking chemical fertilizers and pesticides as examples, the prices of agriculture chemicals have been rising. The average retail prices of domestic urea, ammonium bicarbonate, potassium chloride, and diammonium phosphate have increased from ¥1670, ¥510, ¥1510, and ¥2140  in 2004 to ¥2380, ¥830, a ¥3450, and ¥3560  in 2013 respectively63. Especially glyphosate, whose average retail price per ton increased from ¥4600  in

61  Wan, Baorui. China’s Agriculture Has Entered the Era of High Production Costs[N], People’s Daily, March 13, 2014. 62  Joint Efforts to Fight Drought and Protect People’s Livelihood [J], China Animal Husbandry, 2011 (18). 63  Data are compiled according to the following data: Yu, Jin & Qi, Wu, National Development and Price Monitoring Center Analyzes 2004 Fertilizer Prices and Make Forecasts for This Year [N], China Economic Herald, January 15, 2005; Food Business Network, Late March 2013 National Fertilizer Market Price Table [EB\O]. http:// www.21food.cn/html/news/12/736475 html, April 10, 2013.

170 

W. CHEN

2005 to ¥36,000 in 2013.64 From an environmental protection perspective, rural technological innovations of environmental protection span the whole process from the research and promotion of new agricultural production methods, or new products, to general application. It is the primary motivation for reducing the input cost of production factors, improving agricultural economic benefits, and realizing sustainable agricultural development over a long time. In the new situation, it is necessary to develop agricultural resources in depth and breadth through rural technological innovations of environmental protection, so that the production factors will undergo changes of “quantity” and “quality”, raise the productivity of agricultural production resources of the same amount, and break down the bottlenecks of resource shortage that has limited agricultural productivity, reducing agricultural production costs and improving the comparative benefits of agricultural production. All this will contribute to the unification of economic, social, and ecological benefits. 4.1.3

 ural Technological Innovations of Environmental Protection R Is an Objective Requirement for Promoting Sustainable Agricultural Development and Maintaining Economic, Social, and Ecological Coordination Sustainable agricultural development aims to fully and rationally use agricultural resources, coordinating the relationship between economic development and the carrying capacity of agricultural resources. Furthermore, sustainable development can improve resource transformation rate, optimize the allocation of agricultural resources in space and time, and meet present and future needs for farm products while realizing the sustainable use of agricultural resources. The key point is to achieve the coordination of economic, social, and ecological benefits. At present, China’s agricultural development has entered a new stage. Agriculture is increasingly subject to resources and markets, and its dependence on sci-tech and policies is increasing. With the continuous improvement of various agriculture support policies, the role of sci-tech in agricultural development has become increasingly prominent, especially against the background of tight human—land relations and overloaded agricultural ecosystems. The role of rural technological 64  Data is organized according to the following information: CSI, the price increase of glyphosate stimulates the price increase of alternative products [EB\OL] http:// www.cs. com.cn/sylm/jsbd/201303/t20130314_3899219 html, March 14, 2013; Overall Oversupply of Pesticides, Stable Price, Brand Goods Sells Well and Prices Rise [J], The New Century of Agrochem, 2005(9): 15.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

171

innovations of environmental protection in promoting sustainable agricultural development and maintaining economic, social, and ecological coordination has also become increasingly prominent. Rural technological innovations of environmental protection play a strong supportive role in sustainable agricultural development. First, through rural technological innovations of environmental protection, it can promote the formation of high-tech agriculture, ecological agriculture, circular agriculture, intensive agriculture, and other agriculture forms. Second, it can control and reduce the destructive impact of agro-­technology on ecology, realizing multiple goals such as low consumption in agricultural production and low pollution, and creating a series of emerging sources for agricultural economic growth, like facility agriculture, information agriculture, environmental agriculture, and white microbial agriculture. Third, it can improve agricultural production in terms of both quality and efficiency and optimize resource allocation in accordance with market requirements to achieve sustainable use of agricultural resources. Finally, it can provide high-quality material products for human beings, effectively ensuring food safety and meeting human survival and development needs. Therefore, rural technological innovations of environmental protection play an important role in agricultural modernization and sustainable agricultural development, a significant pathway to promote the coordination of economic, social, and ecological benefits in sustainable development. 4.2  Technological Innovations of Pollution Control and Farmland Protection Promote Production Factor Conservation and Sustainable Agricultural Development Under the new situation, agricultural non-point sources pollution control and farmland environmental protection are the center of technological innovations of pollution control and farmland protection. The main goals are to improve agricultural farming methods, minimize the input of agrochemicals, and strengthen the control of agricultural non-point sources pollution and the eco-environmental protection of farmland in the whole process of agricultural production. Many problems associated with agro-­ ecosystems will be addressed, while the agricultural productivity is improved. The main task of pollution control and technological innovations of farmland protection is to solve three technical problems. First, it focuses on the mechanization, technicalization, and information integration of agricultural production to form a reduction and efficient control mechanism for input of production factors. Second, it focused on preserving and

172 

W. CHEN

improving farmland productivity, using scientific and technological means to monitor and manage farmland environment, soil fertility, infrastructure, and land use, and maintain the dynamic stability of the quantity and quality of farmland necessary for regional development to reduce the agricultural production reliance on agrochemicals. Third, it focuses on improving the comprehensive agricultural production capacity and quality of farm products, optimizing the input structure and input mode of production factors through variety improvement and production technological innovation, and improving the quantity and quality of pollution-free farm products. The essence is to accurately control and scientifically manage the application of agrochemicals during the whole process of agricultural production, which involves the use of scientific and technological means to protect soil environment and improve soil productivity, cultivating and selecting excellent varieties, reducing the dependence of agriculture varieties on pesticides and fertilizers, implementing alternative technologies for pesticides and fertilizers, changing farming methods including rational rotation, and intercropping crops and scientific fertilization of optimal nutrient management. For this we need to follow the following technical route (Fig. 4.4).

Improving planting system Optimizing soil management

Rural environmental technology innovation

Improving variety protection Information technology

Improving the fine management of agricultural materials Fertilization system Economic fertilization

Fertilization technology

Control system New fertilizer

Chemical method

Physical method

Biological method

Fig. 4.4  Rural technological innovations of environmental protection route with production factor conservation at the core

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

173

The first step is to optimize soil management. As the basic material for agricultural production, optimizing soil management means building up the material basis for sustainable agricultural development by means of adding organic materials and applying soil-improving chemicals. The second step is to improve the variety. People can create and introduce varieties with strong resistance to disease, insects, drought, and cold to enhance the biological control ability of varieties and reduce environmental load. The third step is to improve the planting system. Considering the balance of soil microbial and soil nutrients, the planting system needs to transfer from single planting to crop rotation, reducing the ecology security risks caused by the fragility of farmland biodiversity as a result of single planting, so that land productivity can be coordinated. The fourth step is to improve the fine management of agricultural materials and transform the agriculture of high chemical fertilizers and pesticides to the agriculture with appropriate application of chemical fertilizers and pesticides in combination with bio-pesticide and organic fertilizer. According to the above route, it is necessary to promote technological innovations in the following aspects. 4.2.1

I nnovation and Improvement of the Technical System of Soil Productivity Maintaining soil health and fertility is at the heart of sustainable agricultural development. Technologically, a combination of measures needs to be taken. First, it is necessary to develop a complete and systematic soil quality assessment standard system to provide technical reference for quality assessment of different regions and different types of soil.65 Second, it is necessary to innovate high-yield field conservation and mid- and low-­yield farmland transformation technologies, aiming at improving soil productivity, and strengthening applied basic research on high-yield farmland soil conservation, mid- and low-yield farmland soil improvement, and soils with lowcarbon emissions and low pollution. This also includes breakthroughs made in overcoming technical bottlenecks such as remediation of degraded soils, treatment of soils of constraints, and improvement of farmland quality. 65  Zhang, Xinyu & Chen, Liding. Research Progress and Prospects of Soil Quality Evaluation Index System and Evaluation Method [J], Research of Soil and Water Conservation, 2006 (3).

174 

W. CHEN

Third, in view of the public’s shift in demand for farm products from quantity to quality, more micro-fertilizers should be used in agricultural production to improve the quality of farm products as well as reduce crop pests, and increase disease resistance, cold tolerance, and drought resistance, along with active research on microelements in cropland ecosystems and highyield crop cultivation.66 Fourth, it is important to establish and improve soil management information systems from the national level to the village level, and to input statistics such as soil type, quality, nutrient content, historical fertilization, and crop output into a database in order to establish soil quality monitoring systems for different management levels to track changes in soil nutrients and fertilizer information. Based on this, a dynamic soil nutrients and fertilizer information system will be established and the information will be converted into soil nutrients or fertilizers based on Geography Information System (GIS), which will provide technical support for the precision production of modern agriculture. This lays the basis for the development of modern agriculture featuring variable rate fertilization technology, which can realize the comprehensive dynamic balance supply of various nutrients for any mode of farmland.67 4.2.2 Innovative and Rational Planting System To reduce the continuous single consumption of soil nutrients, as well as control and reduce the occurrence of pests and diseases, it is necessary to consider local conditions in terms of water and soil resource endowments and resource characteristics, and integrate nutrient management, crop cultivation techniques, and nutrient utilization technologies. A reasonable rotation system has to be established in accordance with the characteristics of resources in different regions. The system includes rotations between summer crops and autumn crops, grasses and legumes, deep root crops and shallow root crops. This will promote the transformation of a single grain rotation system into a diversified, three-dimensional rotation system to achieve rotations, and intercropping between different food crops and cash crops. On this basis, on the one hand, efforts should be made to promote conservation tillage techniques, implementing no-tillage or less tillage to maintain soil fertility. On the other hand, efforts should also be made to promote cutting-type technology, researching and promoting 66  Deng,Ying & Xie Zhenyi. Research Progress in the Application of Trace Elements in Crops [J], Hubei Agro-sciences, 1999 (02). 67  Xu, Jianming. Waits for Soil Quality Indicators and Evaluation [M], Science Press, 2010.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

175

semi-precision, precision seeding techniques for major crops, as well as seed selection and grading, coating, chemical dressing, and biogas slurry soaking techniques. 4.2.3

I nnovative High-Resistance Variety Improvement Technology System Variety improvement is an effective measure to reduce the input of chemicals, such as pesticides and chemical fertilizers, and increase the output per unit area of crops. Cultivating multi-resistant crop varieties is the key to crop variety improvement. This includes original innovations, integration innovations, and imitation innovations of excellent varieties with multi-­ resistance characteristics; introduction of molecular breeding and transgenic technology; and selection of new varieties with high efficiency, high output, safety, high quality, and high resistance. Biochemical methods and plant transgenic technology will be employed to introduce disease resistance genes into crop cultivation to facilitate the breeding of crop varieties of high resistance, high output, low harm, resistance to disease and lodging resistance, suitable for light and simplified cultivation.68 In view of the main factors constraining crop production in different regions, it is important to realize the system integration of multiple technologies, researching and supporting the promotion of standardized cultivation techniques suitable for different ecological regions and different types of crops. 4.2.4

 he Construction of Agricultural Production Technology T Integration System China will realize the transformation of the traditional agricultural production technology system, which is dominated by breeding and cultivation, to the highly integrated technical system of mechanical engineering technology, biotechnology, and information technology by focusing on the integration and upgrading of agricultural machinery and agronomy.69 The development of biotechnology, information technology, and mechanical technology will be coordinated. Farmers should make full use of modern information technologies such as communication technology, 68  C.F. Research of Modern Agricultural development Strategy in “12th Five-Year Plan” of Hunan Province, a Research Project of Hunan Provincial Development and Reform Commission Headed by Wensheng Chen. 69  Han, Yongyan. On Agro-sci & tec Innovation and Development of Modern Agriculture [J], Journal of the Party School of CPC Xiamen Municipal Committee, 2012, 1 (123): pp. 43–47.

176 

W. CHEN

microelectronics technology, remote sensing (RS) technology, computer technology, and optoelectronic technology to make agricultural production smart, standardized, and scientific. This will improve the precision of production factor utilization, and will reduce the application of agrochemicals as well as the agricultural production efficiency. 4.2.5

I nnovative Fertilizer Development and Efficient Fertilization Technology System Reasonable and efficient technological innovations of fertilizer utilization need to be carried out from three perspectives: new fertilizer, fertilization technology, and economic fertilization. In the development of new fertilizers, fertilizer innovation is the fundamental way to completely solve the problem of fertilizer usage in China. This requires active research and promotion of new fertilizers such as controlled release fertilizers, functional fertilizers, organic compound fertilizers, and biological fertilizers.70 Applying biotechnology, advanced materials technology, automatic control technology, and fertilizer manufacturing technology, with the development of slow-release fertilizers, functional organic fertilizers, waste resource utilization, and special compound fertilizers, the theory and method of comprehensively promoting new fertilizer invention will be greatly pushed forward and a series of innovative fertilizers will be created.71 In terms of high-efficiency fertilization technology, the focus is to improve the technical system for soil testing and formula fertilization. First, China must actively research, promote, and apply soil testing and formula fertilization technology, based on the soil characteristics of agricultural production areas and agricultural product types in order to actively improve, select, or systematically apply the land division formula, target output formula, and fertilizer effect function method. Second, it is necessary to promote and adopt techniques such as mechanized deep chemical fertilizers, diagnostic fertilization, precise fertilization, and water and fertilizer integration, and to actively adopt controlled release fertilizers, promote the industrialization of organic fertilizers, and increase the use of organic fertilizers. Third, economically developed areas can learn from, 70  Wang, Jiaming. Progress in the Development and Application of New Fertilizers [J], Chemical Industry, 2010 (07). 71  Zhai, Huqu. China National Food Security Strategy [M], Beijing: China Agro-sci & tec Press, 2011: pp. 225–229.

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

177

improve, and use the farmland nutrient balance record method model to promote farmers’ farmland nutrient management.72 In terms of economic fertilization, in-depth study and innovation of economic fertilization methods based on the analysis of differences in productivity levels of different soils in different regions should be carried out to match organic fertilizers and chemical fertilizers and balance the blending of nitrogen, potassium, and phosphorus nutrients to obtain the best ecological and economic benefits of fertilization. 4.2.6

I nnovative Disease, Pest and Weed Biological Prevention and Control Technology System First, we must research and promote pesticide-saving technology. This requires scholars to research and promote strong selective pesticides and pollution-free pesticides, as well as use plant protection machinery such as new sprayers to reduce the amount of chemical pesticide applied. Second, we must research and promote the integrated biological control technology to mitigate crop diseases, pests, and weeds, controlling crops and pests through intercropping and crop rotation. In the ecosystem, pests and diseases are effectively controlled by stocking insectivorous animals (or natural enemies of pests).73 Third, a technical system is to be established for monitoring the occurrence of disease, pests and weeds, and for emergency management and comprehensive prevention. In response to the historical records of disease, pests, and weeds and their new characteristics, combined with the rapid development of information science, research should focus on the regular occurrence of such threats at both the national and county level, and carry out technological development and application research navigation technology of GPS in air disaster prevention74 to improve the construction of pest, disease, and grass damage reporting networks. This will provide technical support for biological disaster management and construct technical systems for monitoring, early warnings, emergency management, and control of pests, diseases and grass pests. 72  Tan, Shuqiu, Su, Zhuhua & Zheng Yelu. Successful Experience in Agriculture Nonpoint sources pollution and its Enlightenment to Guangdong[J], Guangdong Agro-sciences, 2008, 4: pp. 67–71. 73  Wang, Tiesheng. Research on Technology Integration Based on Green Agriculture Production [J], Journal of Liaoning Academy of Governance, 2013, 6 (15): pp. 80–82. 74  Cheng, Haibo. Research on Hunan Modern Agricultural development Strategy [M], Changsha: Hunan Sci & tec Press, 2008.

178 

W. CHEN

4.2.7

I nnovative Agricultural Film Pollution Prevention and Control Technology System First, improved methods of using agricultural films are to be researched and promoted to improve their reuse rate. Second, the improvement and promotion of agricultural film recycling machinery is to be studied to improve the efficiency of agricultural machinery to pick up agricultural films. Third, film uncovering technology is to be researched and promoted to screen the best uncovering period of crops, improve the recovery efficiency of agricultural films, and reduce residual film pollution. Fourth, biodegradable agricultural films are to be researched and promoted. Efforts should be made to promote the development and promotion of light and biological double-degradable mulch films, especially double-­ degradable mulch film technology, which is the future development of China’s mulch film industry and is also an inevitable requirement for sustainable agricultural development. 4.2.8

I nnovative Pollution-free Agricultural Production Environment Control and Quality Technology System Farmers should improve the environmental technical standards for the production of pollution-free farm products. This means clarifying the indicators for the environmental quality requirements of soil, water resources, and the atmosphere for the production of pollution-free farm products, and promoting the implementation of environmental technical standards. Furthermore, it is important to improve the quality control system for the production of pollution-free farm products, and clarify that the production process must comply with indicator standards and specifications, as well as quality technical specifications for the whole process of harvesting, processing, packaging, storage, and transportation. Finally, we must improve the technical system for quality inspection of farm products, standardize testing procedures, improve testing quality, and ensure that agricultural primary products and processed products are pollution-free. 4.2.9

I nnovative Agricultural Non-point Sources Pollution Monitoring and Meteorological Disaster Prevention Technology System To minimize pollution, it is important to build an agricultural non-point sources pollution monitoring network system by using Internet technology and computer technology, establishing monitoring stations in areas with high agricultural non-point sources pollution risks, and conducting

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

179

all-weather monitoring of major pollutants such as total phosphorus, total nitrogen, COD, and suspended solids in key areas. Furthermore, this data collection would be used to realize the dynamic monitoring, tracking, and early warning of agricultural non-point sources pollution the first time, and effectively control the pollution hazards in the shortest possible time. In-depth study on agricultural natural disaster occurrence and key monitoring and early warning technologies is be conducted to innovatively develop theoretical methods to prevent and control China’s agricultural natural disasters. 4.3  Circular Agro-Technological Innovations Are to Promote the Saving of Production Factors and Sustainable Agricultural Development Circular agriculture represents an eco-friendly farming method which promotes multi-layered and efficient flow of various agricultural resources in the farming system and maximizes the effective use of resource elements entering the production system and consumption system. It also maximizes economic development. The quality and efficiency of the economy are coordinated with resource conservation and environmental protection. To accelerate the innovation of circular agro-technology and promote the recycling of rural resources, the following technical routes should be followed. First, we should carry out scientific and technological innovations in the management of eco-environment, based on the law of ecology self-organization. The structure of agro-ecosystems is hierarchical, including both horizontal and vertical hierarchies on a spatial scale, as well as nutrient levels and levels of progress. Circular agro-technological innovations should be achieved not only in management technology on a macro scale, but also at the micro level. Second, farmers should try to achieve the technological innovations of eco-environment expansion based on the improvement of resource utilization. This requires the use of technological innovations to achieve partial open-loop controls of agro-ecosystems, achieving material, energy, and information ladders and closed-loop recycling, and improving resource utilization efficiency. Specific technological innovations must be developed from the following aspects. 4.3.1 The Implementation of Environmental Function Zoning Following the accelerated research on the evaluation index system of the rural eco-environment, eco-environmental function zoning, which adopts

180 

W. CHEN

GIS spatial analysis and cluster analysis,75 will be carried out from the national level to the village level in consideration of the distribution characteristics of agricultural resources at this level. The eco-environmental functional zoning at the village level should be the focus of research, as it delineates various functional sub-areas, such as drinking water source protection areas, crop rotation areas, and wildlife protection areas, to protect both underground and above-ground biodiversity and improve farmland biological control of diseases, pests, and weeds. An environmental function zoning database should be established to process historical rural environmental function zoning data and grasp the rural eco-environmental function zoning dynamics in different periods in a timely manner. 4.3.2 Improving the Ecological Engineering System Micro-scale research on farmland ecological engineering technology should be carried out. Systematic engineering management will form a large-scale system for planting, raising, and processing in rural ecosystems in rural areas, and promote the circulation of materials in rural ecosystems. A micro-scale rural ecological engineering integration system for farmland includes three-dimensional intercropping engineering, agroforestry complex engineering, courtyard ecological circular engineering, waste resource reuse ecological engineering, and planting symbiotic ecological engineering. Such an engineering system will improve the conversion rate and resource utilization rate of materials within the micro-scale ecosystem and provide technical support for the “precise” and “proper” development of modern agriculture.76 4.3.3 Innovative Agricultural Waste Recycling Technology It is imperative that China establish a farmland ecology recycling system (see Fig. 4.5) to carry out technical research and application on the harm-­ reduction and nutrient-based treatment of agricultural human and production waste. The farmland ecology recycling system is an integrated system of planting and livestock and poultry breeding. It is also an agricultural product 75  Yu, Zhonghua, Su, Weizhong, Liu, Haibin, Chen, Shuang & Lu, Ningchuan. A Study on the Division of Rural Ecology Environment in Nanjing [J], China Agriculture Resources and Regional Planning, 2012 (2). 76  Liu, Aimin, Feng, Zhiming & Xu, Liming. Modern Precision Agriculture and the Development Direction of Precision Agriculture in China [J], Journal of China Agriculture University, 2000 (02).

4  THE TRANSFORMATION OF THE UTILIZATION MODE OF ELEMENTS… 

181

recycle resources

food

rural life agricultural production industry

sewage disposal plant

reclamation depot

sorting

solid waste

livestock and poultry industry

garbage compost

boiler room

animal products

planting industry

Out-of-area resource input

Material flow

Product output

Energy flow

Fig. 4.5  Farmland ecology recycling system

processing industry and rural living system: the straw produced by the planting industry is technically treated to form garbage compost; the main by-products of the livestock and poultry breeding industries and the agricultural product processing industry are waste residue, waste water, and processing waste. These can be comprehensively utilized and reused to make feeds and fertilizers. The solid wastes can be treated by garbage sorting technology to form waste compost and recyclable resources after incineration. Waste water can be treated to form reclaimed water.77 In the past, domestic wastes and production wastes, which were reduced to a large proportion in agriculture, were treated by rural drainage, local burial, and incineration, which increased the environmental burden. Waste recycling technology as well as integrated utilization research should be conducted on life and production wastes based on regional geographical characteristics and resource characteristics from these three aspects. By 77  Chen, Wenhui. Comprehensive Evaluation of China’s Circular Economy [M], Beijing: China Economic Publishing House, 2009.

182 

W. CHEN

way of the exchange of wastes and by-products, and the comprehensive cascade utilization of energy and water resources, there will be various types of organic matter circulating between farmers and growers, and between different rural industries. Such an efficient farmland ecosystem can achieve integration with crop diversity and intensive planting, reduce the burden of organic waste on the environment, and increase crop output and agricultural benefits.78 At the micro level, we must focus on innovation and promotion of conservation-oriented technologies, and actively carry out research and application of soil technologies such as green fertilizer and fertilization, straw returning, and animal manure. This will speed up the development and promotion of oil-saving agricultural machinery, eliminate outdated and high energy-consuming agricultural machinery, and encourage research and promote conservation tillage techniques. We must carry out in-depth studies on the conversion process from precipitation, irrigation water to soil water, plant water, photosynthesis, biomass and finally economic output. At the same time, we must also focus on research and promotion of farmland water preservation technologies and products, which eliminates the need for farmland film mulching to preserve water, as well as information on crop water shortage, precise control irrigation, and water physiological regulation. We will also research and promote physical, chemical, or biological ecological engineering which can fix or degrade sewage in soil-plant systems on the farmland or in the forest. On the other hand, we must also focus on research on and promotion of organic recycling technology, and improve the two organic circulation chains: using primary products as raw materials to form a “crop primary products  – feed – aquaculture – livestock and poultry manure into biogas tanks – biogas energy, biogas slurry field, biogas residue to culture edible fungus – fungus to feed earthworm – organic material circulation chain”. We must also use processing by-products as raw materials to form an organic material circulation chain: “crop processing by-products  – livestock and poultry farming – livestock and poultry manure into the biogas digester– biogas energy, biogas liquid returning, and biogas residue into the fish pond – pond mud returning to field”.

78  Feng, Zhijun. Introduction to Circular Economy [M], Beijing: People’s Publishing House, 2004.

CHAPTER 5

The Transformation of Agricultural Production System in Line with “Resource and Ecologically Sound Agriculture”

Transforming the agricultural development mode and accelerating the transformation of the “resource and ecologically sound agriculture” production system means transforming an extensive agricultural production mode, which features high consumption, low output, and high pollution, in accordance with the objective requirements of accelerating the transformation of the economic development mode and promoting the construction of a “resource and ecologically sound society”. It means relying on scientific, technological, and institutional innovation to improve resource utilization and protect the ecological environment, promoting the transformation of traditional agriculture into modern “resource and ecologically sound agriculture” by popularizing resource-conserving and eco-friendly technologies and thereby realizing the common development of people and nature as well as the sustainable use of resources, demonstrating its economic, social, ecological, humanitarian, and circulatory function, producing harmonious economic, social, ecological, human, and source-saving benefits. The final objective is to establish the “resource and ecologically sound agriculture” production system with low input, low energy consumption, low pollution, and high output. The production system includes a “resource and ecologically sound agriculture” industrial system, the agriculture standardization production system with guaranteed quality of agricultural products at its core, the system of agricultural non-point sources pollution prevention and control with the core of ecological environment protection, the system of disaster prevention and © The Author(s) 2020 W. Chen, Challenges and Opportunities for Chinese Agriculture, China and Globalization 2.0, https://doi.org/10.1007/978-981-15-3536-9_5

183

184 

W. CHEN

mitigation by means of the construction of irrigation and water conservation, and the protective system of biological species resources through biological germplasm resources protection.

1   The Construction of “Resource and Ecologically Sound Agriculture” Industrial System The development of a “resource and ecologically sound agriculture” industry is the most important task to construct a “resource and ecologically sound agriculture” production system, and it is also the requirement and direction of agricultural transformation and upgrading in China. In practice, the production system of “resource and ecologically sound agriculture” must be implemented for specific agricultural industries. On the one hand, a “resource and ecologically sound agriculture” industrial system has put forward corresponding requirements for the development of agricultural industry and set its development direction. On the other hand, the adjustment, transformation, and upgrading of agricultural industry provide support for a “resource and ecologically sound agriculture” industrial system. Without a matching agricultural industrial system, a “resource and ecologically sound agriculture” production system will be a proverbial castle in the air. 1.1  The Connotation and Characteristics of “Resource and Ecologically Sound Agriculture” Industrial System The development of “resource and ecologically sound agriculture” refers to the “resource and ecologically sound” development of agricultural industry, that is, relying on technical and administrative innovation to improve economic, social, and ecological benefits, and to transform the agricultural production system under the direction of low resources consumption and low environmental pollution, thereby optimizing the agricultural industrial structure and improving the sustainable development capacity of agriculture so as to meet the requirements of constructing a “resource and ecologically sound society.” Therefore, a “resource and ecologically sound agriculture” industry refers to a new type of agricultural development that takes resource-conserving and eco-friendly

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

185

agriculture as the goal, and follows the main production mode featuring advanced technology, low consumption, environmental protection, and cyclic utilization. As a result, “resource and ecologically sound agriculture”, that is, the resource-conserving, eco-friendly “resource and ecologically sound agriculture” industrial system, is a modern agricultural industrial system that advances the construction of a “resource and ecologically sound society” in the direction of agricultural modernization; a system that adheres to the leading of “resource and ecologically sound” development, continuously optimizes the structure of agricultural industry, extends the industrial chain of agriculture, expands the development fields and industrial functions of agriculture, and enhances the competitiveness of agricultural products; a system that forms a set of economic development, ecological protection, resource development, cultural heritage, food security, raw material supply, market services, and other functions, with new signs such as high technological content, good economic rewards, low resource consumption, less environmental pollution, and full utilization of human resources advantage. It not only meets the requirements for the development of modern agriculture, but also embodies the development principles of “resource conservation” and “eco-friendliness”. In sum, the system is the “resource and ecologically sound” development of the modern agricultural industrial system. The “resource and ecologically sound agriculture” industrial system consists of two major industries: one is high-tech and emerging industries such as biomedicine, genetic technology, and new energy, which are characterized by high technological content, low resource consumption, low energy consumption, low emissions, and high benefits. As technology-­ intensive and knowledge-intensive agricultural industries, they deeply integrate core technology of emerging agro-science and technology with emerging agricultural industries, thus representing the commanding heights of modern agricultural industry competition. The other is traditional industry that has been transformed by modern elements. Through the rational flow and combination of agricultural, urban, and rural production factors, it adjusts and optimizes the agricultural industrial structure, and integrates or eliminates outdated industries according to resource carrying capacity and environmental carrying capacity, so as to establish a resource optimization and allocation mechanism oriented by “resource and ecologically sound agriculture” and to promote the transformation and upgrading of traditional industries. Meanwhile, through the

186 

W. CHEN

application of advanced technology and the innovation of advanced applicable technologies, it promotes the technological transformation and upgrading of traditional industries, greatly improves the technical level of agricultural equipment, and continuously promotes the upgrading of traditional industries, thus formatting a new competitive advantage in new technology platforms and market systems, which is undoubtedly an important part of the “resource and ecologically sound agriculture” industrial system. The “resource and ecologically sound agriculture” industrial system is involved in each stage before, during, and after production in the whole agricultural production process, covering six industries: planting, animal husbandry, modern forestry, fisheries, processing industry, and service industry. It is a new modern agricultural industry system with high resource utilization, excellent ecological protection, strong market competitiveness, and reasonable structure and layout. Its basic features are as follows. 1.1.1 Sustainability The fundamental purpose of “resource and ecologically sound agriculture” with high resource utilization is to resolve the conflict between agricultural development and the bottleneck of resources and environment, so as to realize the sustainability of agricultural development. “Resource and ecologically sound agriculture” realizes the harmonious development of man and nature, agriculture and industry, agriculture and other industries, by conserving resources and protecting the environment. It mainly includes eco-friendly production modes; non-polluting or low-pollution technologies, processes, and products; ecologically-oriented industrial layout; less pollution and low-loss industrial structure; and sustainable development of green industries, thereby creating a comprehensive purified rural production and living environment with clean water, countryside, and home.1 Therefore, sustainability is the primary feature of “resource and ecologically sound agriculture”. 1.1.2 Security Being closely related to food, agriculture is the indigenous industry of human food. Therefore, the security of agricultural industry is of great concern. However, under the modern development model of 1  Ma, Defu & Liu, Xiuqing. On Agriculture and “Two-oriented Society” and “Twooriented Agriculture” [J]. Hubei Social Sciences, 2010 (12).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

187

“petrochemical agriculture”, the chemical application of agriculture has become increasingly prominent; thus, the quality of agricultural products is difficult to guarantee, and food safety issues become pressing. In the “petrochemical agriculture” model, the natural attribute of agriculture is gradually reduced, while the artificiality of agriculture is increasingly prominent. Under the influence of human gene intervention and chemical medicine regulation, agricultural production poses more and more hidden dangers to food and environment. “Resource and ecologically sound agriculture” not only focuses on resource conservation, but also on the naturalness of agriculture, with particular emphasis on the friendliness of agriculture and the ecological environment. Therefore, “resource and ecologically sound agriculture” is a safe industrial system. 1.1.3 Complexity “Resource and ecologically sound agriculture” not only relieves the constraints of resources and environment, but also properly deals with the problem of ecological environment and climate change, and realizes multiple goals such as income increases for farmers, sustainable economic development, and food security. It demonstrates humanitarian, circulatory, economic, ecological, and social functions, thereby producing an agricultural production system with human, source-saving, economic, ecological, and social benefits. Therefore, the “resource and ecologically sound agriculture” industrial system encompasses many visions for the sustainable development of agriculture, and it is also an inevitable choice for human security. It encompasses multiple development objectives and functional missions. Thus, it is a multi-target, multi-functional, and multi-­ effective complex industrial system. 1.1.4 Humanity The “resource and ecologically sound agriculture” industrial system does not take economic development as a priority. Instead, it takes human survival and development as a starting point, sets comprehensive utilization of resources and ecological environmental protection as main objectives, and follows the principle of human safety and healthy development. Focusing on developing low-carbon and high-efficiency as well as ecological and circular agriculture, it minimizes agricultural energy consumption, reduces the use of pesticides, fertilizers, and plastic film, and maximizes the utilization of agricultural resources such as farmland and water

188 

W. CHEN

resources. In this way agricultural development and ecological environmental protection not only meet the basic needs of contemporary people, but also ensure their future development. Therefore, this is an industrial system with a focus on humanity. 1.1.5 High-Tech Aiming to realize a high-yield, high-quality, high-efficiency, and low-­ consumption agriculture, “resource and ecologically sound agriculture” promotes new agricultural production technologies such as energy, water, land, and materials saving, and develops and promotes waste utilization, green fertilizers, biological pesticides, eco-protective farming, and other new eco-friendly agricultural production technologies, thereby achieving productivity, economic, and ecological sustainability and establishing a “resource and ecologically sound agriculture”-focused agroecological system. The application of advanced energy-saving and environmental protective technologies also promotes the “resource and ecologically sound” development of modern agriculture. For example, resource-conserving technology can maximize the efficiency of resource use. Environmental technology can reduce the dependence of agricultural organisms on chemical pesticides, thus improving the quality of agricultural products. Moreover, new energy development and energy-saving technologies can improve rural energy use structure. Therefore, “resource and ecologically sound agriculture” is a high-tech industrial system. 1.2  Main Tasks of Constructing a “Resource and Ecologically Sound Agriculture” Industrial System The process of constructing a “resource and ecologically sound agriculture” industrial system essentially aims to develop a variety of agricultural functions in span and depth. It is a process of constantly optimizing and upgrading the agricultural industrial structure, and of accelerating the transformation of traditional agriculture. 1.2.1

 onstructing a “Resource and Ecologically Sound” Product C Industrial System In the production process of agricultural products, a “resource and ecologically sound” product industrial system breaks through the traditional highinput, high-emission production model, and transforms traditional agriculture with “resource and ecologically sound agriculture” development

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

189

standards and production mode of low input, low energy consumption, low pollution, and high output, thereby producing pollution-free agricultural products, green food, organic food, and other agricultural products that meet the requirements of “resource and ecologically sound agriculture”. It is the core of a “resource and ecologically sound agriculture” industrial system. Focusing on energy, water, land, fertilizer, and medicine-saving, it is committed to the development of resource-­conserving, eco-friendly agricultural products industries such as food, cotton, oil, livestock, fishery, vegetables, and fruits. This includes farming industries and aquaculture that conserve resources and protect the environment, as well as other “resource and ecologically sound” agricultural industries. 1.2.2

 onstructing a “Resource and Ecologically Sound” Functional C Industrial System With the goal of resource conservation and eco-friendliness, a “resource and ecologically sound” functional industrial system will accelerate the cultivation and development of bio-energy industries, leisure agriculture, rural tourism, characteristic industry, and other “resource and ecologically sound agriculture” industries through various carriers of agricultural forms such as low-carbon agriculture, circular agriculture, eco-agriculture, organic agriculture, intensive agriculture, precision agriculture, and resource-conserving agriculture. Then, it will gradually form a “resource and ecologically sound agriculture” functional industrial system for green planting, ecological animal husbandry, and ecological fisheries, and expand and utilize the multiple functions of agriculture such as ecological protection, leisure tourism, cultural heritage, and bio-energy, thereby enhancing the numerous effects of agricultural development. This is not only reflected in the production of agricultural material products, which aims to ensure national food security and safety control for agricultural products, but also in the demonstration of the “resource and ecologically sound” function. It is an important part of constructing a “resource and ecologically sound agriculture” industrial system and a necessary component of developing “resource and ecologically sound agriculture”. 1.2.3

 onstructing a “Resource and Ecologically Sound” Service C Industrial System Establishing a “resource and ecologically sound” service industrial system with full coverage, comprehensive support, high efficiency, and convenience is an inevitable requirement for the development of “resource and ecologically sound agriculture”. With organizational, institutional, and management

190 

W. CHEN

innovations as the main line, and information technology as the link, a “resource and ecologically sound” service industrial system will strengthen the benign interaction and functional connection between industry and products, between businesses, and between different markets and various chains, thus forming a multi-form and multi-function service industrial system with industrializing operation, intensive production, and scientific management. Moreover, services such as technology promotion, financial insurance, product processing, land contract, quality safety, plague prevention, and economic information will be provided. The development of technological industry, which is beneficial to water, electricity, fertilizer, medicine, and land conservation, the development of processing and circulation industry, which produces green food, organic food, and pollution-free agricultural products, as well as social services, information consultation, and other related industries, will also promote “resource and ecologically sound agriculture.”2 1.3  Establishing a Guarantee Mechanism for Agricultural Industrial System in Line with “Resource and Ecologically Sound Agriculture” The construction of a “resource and ecologically sound agriculture” is a complex engineering system, thereby requiring both the conceptual transformation of modern agriculture and the format innovation of modern agriculture. It is necessary to construct an ensuring system involving the following aspects. 1.3.1

“ Resource and Ecologically Sound” Agricultural Infrastructure Construction System Sound infrastructure is a prerequisite for the development of a “resource and ecologically sound” agricultural industrial system. While establishing the primary position of the government in investing and continuously enhancing the government’s ability to supply public goods, it is necessary to give full play to the role of policy guidance and market mechanism, fully utilize market mechanisms and means to channel industrial development capital toward “resource and ecologically sound agriculture” infrastructure projects, encourage all types of economic entities to participate in the construction of “resource and ecologically sound agriculture” infrastructure, and gradually establish a “resource and ecologically sound” agricultural 2  Cf. Views of Dongke Zhang on modern agricultural production system. Mr. Zhang is a member of the CPC Central Leading Group for Rural Work. For details: Strive for a Modern Agricultural Industrial System [N], Guangming Daily, October 24, 2008.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

191

infrastructure construction system featuring diversified investment sources, accountable construction projects, socialized financing methods, and the marketization of operational mechanisms, so as to effectively guarantee the basic conditions necessary for the smooth operation of a “resource and ecologically sound agriculture” system. 1.3.2

 romotion System of Large-Scale Management of “Resource P and Ecologically Sound Agriculture” Industry If a “resource and ecologically sound agriculture” industry cannot develop to a certain scale, it may have no advantage. Therefore, it is necessary to cultivate principal products of “resource and ecologically sound” modern agriculture on the basis of natural resources and cultural advantages of various regions and agricultural pillar industries that meet the requirements of “resource and ecologically sound agriculture”, through the combination of resource introduction and integration, market promotion and policy support, and enterprise development and farmers’ income increase, to form a promotion system of “resource and ecologically sound agriculture” industrial scale management that is driven by leading industries, special industries, and service industries, thereby realizing scale development of “resource and ecologically sound agriculture”. 1.3.3

S cience and Technology Support System of a “Resource and Ecologically Sound Agriculture” Industrial System With the goal of constructing a “resource and ecologically sound agriculture” industrial system, the science and technology support system will promote agro-science and technology innovation, thereby giving full play to the promotion and support of agro-science and technology for “resource and ecologically sound agriculture”. (1) Focusing on the development of a “resource and ecologically sound agriculture” industry, it will establish a policy system conducive to stimulating the enthusiasm of agro-­ science and technology in both personnel and relevant departments. (2) It will establish a support system for agricultural research institutions and agro-science and technology projects, thereby accelerating the formation of bilateral and multilateral cooperation mechanisms between research institutions, marketing departments, agricultural enterprises, and farmer cooperative organizations. (3) It will establish a support system that encourages agriculture-related enterprises to form long-term cooperative relationships with major universities, research institutions, and social science and technology service departments, thus continuously promoting the industrialization of scientific and technological achievements.

192 

W. CHEN

2   Constructing the Agriculture Standardization Production System with a Focus on Guaranteeing Agricultural Products’ Quality at the Core Improving the quality of agricultural products and ensuring food safety are not only important aspects and distinctive signs of a “resource and ecologically sound agriculture” production system, but also the key to the development of “resource and ecologically sound agriculture”, a revolution in the transition from traditional agriculture to modern agriculture. As the fundamental guarantee for improving the quality of agricultural products and ensuring food safety, the standardization of agricultural production is also an important measure to improve the credibility and market competitiveness of agricultural products. Therefore, it can be determined that without the standardization of agricultural production, there is no marketization of products, and there are no comparative benefits or competitive advantages of “resource and ecologically sound agriculture”, and finally “resource and ecologically sound” development of agriculture will be impossible. 2.1  The Connotation and Extension of the Agriculture Standardization Production System Practical experiences at home and abroad both show that agricultural standardization is an effective way to promote the transformation of scientific and technological achievements into productivity. Therefore, accelerating the process of agricultural standardization is a strategic requirement for promoting the transformation of agricultural development. 2.1.1

 griculture Standardization and Standardized Production A of Agricultural Products Appearing in the early twentieth century, standardization theory has a history of almost 100 years. In the early 1970s, academics began studying agriculture standardization theory systematically, while research in China started in the 1990s. Scholarly understanding of standardization has deepened with the increasing emphasis on the quality of agricultural products. Some scholars apply the concept of standardization directly to agricultural production. They believe that, based on scientific research findings and rich practical experience, agriculture standardization is a process that, by applying standardization principles and adopting scientific and standardized

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

193

methods, fixes down the methods of production increase and income increase which have been proved by productive practice, formulates and implements standards, and finally supervises the standards.3 In contrast, other scholars define agriculture standardization from three perspectives: the sphere of activities, the process of activities, and the purpose of activities. They hold the idea that agriculture standardization aims to formulate, implement, and uniform standards for recurring factors and concepts in agricultural production practices, thereby realizing the best order and optimum benefit. Guosheng Gao, for example, believes that agriculture standardization refers to the whole process that uses quality standards to monitor and control agricultural production according to market needs, so as to provide consumers with standards-compliant and high-quality agricultural products and finally achieving optimal benefits.4 In other words, agriculture scholars have gradually deepened their understanding of the concept of agriculture standardization, progressing from simple phenomenon descriptions to explanations of its purpose, to specific elaborations, and thus a basic consensus has been reached that agriculture standardization is a process.5 Standardized production of agricultural products is an important part of agriculture standardization. Based on the requirements of standards and norms, it regulates and controls the pre-production, mid-production, and post-production links of agricultural products in the entire process.6 In the light of comprehensive understanding of the above concepts and research on the practice of standardized production of agricultural products, the standardized production focused on guaranteed agricultural product quality can be defined as a production process, in which the qualified production subject, aiming at guaranteed agriculture products quality, organizes agricultural production management in the production area that can achieve scale production, utilizes practical quality control methods, and employs agricultural intermediate inputs conforming to the laws and regulations of the state in accordance with appropriate production and operation procedures, thereby making the quality of agricultural products meet the consumption requirements. 3  Yang, Hanming, Li, Tongshan & Zhang, Mingle. On Building China’s Standardization System [J], Academic Journal of Zhongzhou, 2001 (4). 4  Gao, Guosheng. Review of Agricultural Standardization Research [J], Guangdong Agrosciences, 2009 (6). 5  Ibid. 6  An, Jian, Zhang, Qiong & Niu, Dun. Interpretation of Law of the People’s Republic of China on the Quality and Safety of Agricultural Product [M], Beijing: China Law Press, 2006.

194 

W. CHEN

At present, the main factors affecting the standardized production of agricultural products include standardization system, scale and concentration degree, organizational degree, and government and policy support. 2.1.2

 unctions of the Agriculture Standardization F Production System Promoting standardized agriculture production, implementing full supervision of agricultural product quality from “land to table”, and constructing an agriculture standardization production system with “standardized production, identified products, quality inspection, certification procedures, and market supervision” is the “gauge” of a “resource and ecologically sound agriculture” production system as well as the breakthrough for the “resource and ecologically sound” development of agriculture. (i) Transforming traditional agriculture. The standardization production focusing on guaranteed agricultural product quality requires agricultural production to be large scale and organized, and at the same time promotes the industrialization and commercialization of agricultural products. These are the essential characteristics of “resource and ecologically sound” agricultural development, and important initiatives to accelerate the transformation of the agricultural development mode. Standardized production is not only conducive to achieving the objectives of high quality, high yield, high efficiency, ecological, and safe, but also in favor of transforming traditional agriculture and developing “resource and ecologically sound agriculture”. (ii) Protecting the ecological environment of the production area. On the one hand, standardized production focusing on guaranteed agricultural product quality initiates the recycling of waste materials in the system. Standardized production is conducive to organizing farmers to dispose of agricultural production waste in a concentrated and large-scale way, thereby promoting the benign circulation of substances and forming good cycles of the environment. On the other hand, producers are encouraged to actively protect the ecological environment. Standardized production has strict requirements for the ecological environment of the production area. Natural factors such as soil, atmosphere, and water in the production area must meet the ecological environment standards of the standardized production area. That is, producers should

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

195

protect the environment of the production area spontaneously and actively, in order to guarantee the sustainable productive capacity of the production area. (iii) Guaranteeing the safety of agricultural production. The standardized production focusing on guaranteed agricultural product quality requires that the ecological environment of the production area, the production process of agricultural products, and agricultural product quality should meet relevant standards and specifications. It must realize a series of institutional arrangements, that is, “production environment should be monitored, production operations should follow rules and procedures, production processes should be recorded, agricultural products should be inspected, and products on the market should be marked”, thereby materializing the safety requirements of agricultural products. 2.2  Theoretical Basis of the Agriculture Standardization Production System with a Focus on Guaranteeing Agricultural Products’ Quality at the Core The agriculture standardization production system is essentially an important part of the agricultural development mode, which plays a significant role in promoting the transformation of agricultural development. To cope with enormous challenges such as resources, environment, market competition, and food safety faced by agriculture in the twenty-first century, implementing agriculture standardized production is a major task and an important issue for China’s agricultural and rural economic development. Internationally, a clear definition of an agriculture standardization production system has not yet appeared. The following are similar or relevant theories, which mainly focus on motivating the virtuous cycle of soil organisms, solving the problems such as environmental pollution and soil erosion faced by agricultural development and finally ensuring the quality and safety of agricultural products. 2.2.1 Sustainable Development Theory Sustainable development aims to satisfy the needs of the contemporary era without damaging resources for later generations, which means rational use, maintenance, and improvement of the natural resource base. It is this resource base that supports ecological resilience and economic sustainability. Therefore, concerns and considerations for the environment should be

196 

W. CHEN

fully integrated into development plans and policies. Analysis of sustainable development concepts has the following connotations: (1) Sustainable development is related to public interests. It benefits the people and therefore demands public participation; (2) Due to the interaction and mutual influence between environmental system and economic system, sustainable development must fully coordinate economic growth and environmental protection; (3) Sustainable development should fully consider the development needs of all sectors of society, and achieve intra-generational equity; (4) Sustainable development must not only achieve intra-­ generational equity, but also realize inter-generational equity; (5) The improvement of people’s living quality is consistent with ecological environmental protection. They are complementary to each other. With the innovation, development of technology, and increasing population, the complete and scientific ideas of sustainable development are gradually formed, developed, and perfected after the human being has experienced countless instances of “nature’s revenge”. 2.2.2 Industrial Ecology Theory The traditional view that industrial development will damage the ecological environment has been challenged. Some scholars argue that the industrial system can be regarded as an integral part of the ecosphere, and propose the industrial ecology theory.7 According to this theory, industrial activities cannot be isolated from the external world. Instead, industrial ecosystems work functionally in natural ecosystems or biospheres. An industrial system, like a natural ecosystem, essentially has the function of material, energy, and information flow, relying on the services and resources provided by the organism. Industrial ecology paves the path toward solving the problem of how the concept of sustainable development can be realized in a more economically viable way. It is characterized by vertical closed cycle and transverse coupling and symbiosis. Thus, it is necessary to establish transverse symbiosis between different industries and different technological processes in the industrial system, realizing stratified utilization of materials and regeneration recycling through resource sharing and transverse coupling across various technological processes, meanwhile achieving vertical closure of the material, and thereby the resources can be continuously recycled. 7  R.  A. Froseh. Industrial Ecology, a Philosophical Introduction. [J], Proceedings of National Academy of Sciences, 1992, 89: pp. 800–803.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

197

2.2.3 Theory of Ecological Economy The core of ecological economic theory is to coordinate the development of ecosystems and economic systems. Compared with the traditional economic growth model, the production view of ecological economics requires a full consideration of the threshold of an ecosystem, warning that economic activities cannot surpass the ecological carrying capacity. It attaches importance to the restoration and maintenance of the ecosystem through science and technology, advocates for the cultivation of sustainable consumption patterns and consumption concepts that pay attention to ecological environmental protection, and then achieves the organic integration of human society cycle and natural ecosystem cycle so as to systemize and optimize the allocation of material flow, capital flow, and energy flow in the area. The theory of ecological economy emphasizes the interrelationship between ecosystems and agricultural production processes. 2.2.4 Theory of Environmental Externality When there is a difference between social cost and private cost in production activities, the gap between the two types of costs forms an externality.8 When scholars thoroughly study environmental externality, they find it is difficult for environmental externality to exert its influence through market mechanisms; the recipients of environmental pollution can only passively accept its externality, and it is hard to coordinate through market mechanisms. Therefore, a negative welfare meaning exists between the externality of environmental pollution and its recipients. Internalization of environmentally external diseconomy can better solve the externalities of producers’ economic activities. The purpose of standardized production is to narrow the gap between marginal private cost and marginal social cost, achieve a balance between them, and ultimately promote the sustainable development of agriculture.9 2.3  Components of the Agriculture Standardization Production System with a Focus on Guaranteeing Agricultural Products’ Quality at the Core The agriculture standardization production focused on guaranteed agricultural product quality is a rational choice. On the one hand, based on the traditional agricultural production mode, the agriculture standardization production technology uses an advanced management mode.  A. C. Pigou. The Economics of Welfare [M], Beijing: Huaxia Publishing House, 2007.  Shao, Limin. A Study on Measures and Strategy Selection of Green Agriculture and Green Food in China [D], Shenyang Agriculture University, 2002. 8 9

198 

W. CHEN

Therefore, the production technology is easy to operate and generalize. Not only does it realize sustainable development, but it also meets the dual needs for quantity guarantee and quality safety of agricultural products. On the other hand, standardized production of agricultural products has promoted the intensification and organization of agriculture, encouraging the large-scale production and market operation of agriculture, which is conducive to transforming China’s traditional agriculture and accelerating the transformation of China’s agricultural development mode. In China, people began to pay attention to the quality assurance of agricultural products in the 1980s, while the comprehensive implementation of standardized production began in 2000. From 2007 to 2009, within the general environment of the implementation of Agricultural Products Quality Security Law, China managed the standardized production of agricultural products according to law, and began to construct a system of regulations concerning production area exit and market access for agricultural products, and thereby the agriculture standardization production system started to develop along the path of scientific management. The production system consists of the following aspects. 2.3.1 Management and Standards of Agricultural Input Factors The premise and basis of agriculture standardization production is the choice and management of production areas, since products from different industries have different requirements for the ecological environment. The production area of aquatic products exerts high requirements on water sources, water quality, and the ecological environment, favoring especially areas of convenient transportation. The production area of farming products requires high-quality ecological conditions, and should be located away from pollution sources. Meanwhile, the production area should be concentrated and contiguous, providing scale production and relatively stable products. The production area of livestock and poultry farms should be far away from ecologically sensitive regions such as water sources, nature reserves, and densely populated regions. Moreover, the scale of livestock and poultry breeding should be equivalent to the environmental capacity of production areas, staying within its ecological threshold. Moreover, agricultural production sites should avoid contamination from pollution sources such as waste gas, waste water, industrial residue, and medical waste.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

199

2.3.2

 anagement and Standards of Agriculture Production M Area Environment The quality standards of the agriculture production area environment are mainly reflected in three natural factors: atmosphere, soil, and water. Since products from different industries vary in their ability to resist environmental impacts, the standards of pollution factors in soil, atmosphere, and water in agricultural production areas are also different. Taking soil quality standards as an example, fish and other aquatic products require that the heavy metal content such as lead and chromium in the fish pond sediment should not exceed 50 mg/liter, whereas the standard requirements for crop production area are relatively low. The standard value of some heavy metal content in soil is about 5–7 times higher than that of fish farming.10 2.3.3 Management and Standards of Agricultural Product Quality The agricultural product quality standards are mandatory, thus having a mediating effect on the inspection of standardization production processes of agricultural products. In China, agricultural product quality standards were first formulated in 2001, and standards of new products as well as revised standards are issued each year since then. During the “Eleventh Five-Year Plan” period, more than 1800 national agricultural standards and industry standards were formulated, and the total number has reached more than 4500 so far.11 This means that the standard system for agricultural product quality has been established and gradually completed. 2.3.4

 anagement and Standards of Agricultural M Production Process The agriculture standardization production process focuses on guaranteed agricultural product quality practices standardized management. Different from the environmental standards of production areas with specific indicators, or the management of input products with specific application requirements, it focuses more on management models and ideas. Good management models and ideas play a significant role in realizing the industrialized management of large-scale, organized, and marketized agricultural products. 10   State Environmental Evaluation Standards for China, 2006. 11  Division of Press and Agricultural Products in Knowledge, 2011 (8).

Protection Administration. Farmland Environmental Quality Edible Agricultural Products [S], Beijing: Standards Press of Publicity of Ministry of Agriculture. The Quality and Safety of China Has Been Continuously Improved [J], Agriculture

200 

W. CHEN

There are three key points: standardization of quality assurance systems, standardization of production operations, and standardization of quality and safety supervision. The quality assurance system covers the environmental protection system of production areas, the system for the formulation and revision of production technical regulations, the inspection system for agricultural products, and the system of production records. Standardization of production operations includes seed (poultry, fry) breeding techniques and production operation techniques. The key point of standardization of quality and safety supervision is to construct a monitoring system, a testing system, and a traceability system for agricultural product quality and safety, thus conducting traceability analysis of quality safety. 2.4  The Construction of a Standardization Production System of Agriculture with a Focus on Guaranteeing Agricultural Products’ Quality at the Core The construction of the agriculture standardization production system should be guided by the building of a “resource and ecologically sound society” and the transformation of the agricultural development mode, centered on the elevation of the product quality and safety insurance level. It is aimed at enhancing agricultural product competitiveness, and increasing agricultural production, efficiency, and farmers’ income. Combining the development trend of world agriculture with the national condition of China, it will construct a production system that integrates industrial standards with the development of agricultural industries. 2.4.1

 he Framework of Agriculture Standardization T Production System As the key supporting system for the development of agricultural industry, the agriculture standardization production system should be constructed by following the main lines of professions, industries, species, and varieties. In the agricultural standardization production system, the first level includes agricultural safety standards and agricultural quality standards. Agricultural safety standards cover standards for physical, chemical, and biological substances, while the agricultural quality standards include the standard sub-system of farming, animal husbandry, fisheries, and other industries. On this basis, the industrial technology standard system is further divided. The animal husbandry standard sub-system can be subdivided into cattle and swine; the planting standard sub-system can be

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

201

subdivided into vegetables and fruits; the fisheries standard sub-system can be subdivided into fish and shrimp. Standards can also be divided according to the varieties and species in the subsystems. Therefore, the framework of the agriculture standardization production system centered on guaranteed agricultural product quality should be constructed as a system that covers agricultural safety standards and quality standards, professions, industries, species, and varieties at different levels, and involves production, processing, storage, transportation, and sales.12 The detailed construction framework of the agriculture standardization production system is shown in Fig. 5.1.

Agricultural safety standards

Chemical substance

agricultural foundation

Physical substance

resources and environment

agricultural inputs Biological substance Agricultural standardization production system

experiment methods

Agricultural quality standards

Planting industry

vegetables, fruits and so on

product standard

Livestock husbandry

pig, cow, sheep and so on

package and storage

Fishery industry

fish, shrimp, shellfish and so on

market access

Fig. 5.1  The framework of standardization production system of agriculture focusing on agricultural products quality

12  Qian, Yongzhong & Wei, Qiwen. Study on the Development Strategy for China’s Agrotechnical Standards [M], Beijing: Standards Press of China, 2005.

202 

2.4.2

W. CHEN

 ey Points in Constructing the Agriculture Standardization K Production System

(i) Promoting the process of agriculture standardization. Focusing on the leading products of various regions, China formulates development programs and promotion plans of agriculture standardization production. Combining the construction of the “National Standard Garden” and the “Standardized Raising Zone”, it focuses on the creation of agricultural product brands, and vigorously promotes the construction of agriculture standardization demonstration counties (districts). With expanding propaganda and training, it actively promotes national, p ­ rofessional, and local standards, revises local standards, and establishes standard systems. While vigorously developing professional cooperative organizations, it uses brands as the link to promote standardized production and agricultural industry upgrading. (ii) Constructing agricultural safety standards. The agricultural product quality safety is a top priority directly related to the health and safety of consumers. For the standardization of chemical, physical, and biological substances in the various processes of agricultural production, processing, transportation, and sales, a strict, standardized, and systematic safety standard system should be constructed with corresponding legal protection. At present, the following specific standards need to be formulated: basic standards for agricultural safety; resource protection and environmental safety standards; standards for the maximum usage and residue limits of toxic substances such as pesticides; high-tech agricultural standards; safety standards and test method standards for genetically modified products; testing, inspection, and safety assessment standards and market access standards for deteriorating agricultural products. (iii) Promoting the integration of the agriculture standardization system with the international community. Under the rapid development of economic globalization and trade liberalization, the main forms of trade barriers such as tariffs have been gradually removed, but the more concealed green trade barriers have developed rapidly. Especially in recent years, under the global economic recession, countries around the world have taken measures to resist the import of other countries’ products so as to protect their agricultural industries. Food quality safety certification and requirements of ecological environmental protection have become the most necessary green

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

203

trade barriers. Agricultural products are important commodities for China’s exports. Therefore, the construction of the agriculture standardization production system with guaranteed agricultural product quality at its core must pay attention to trade attributes, thereby flexibly and effectively avoiding technical trade barriers. The characteristics of agricultural standards for trade attributes are as follows. First, trade-type standards should be highly adaptable and flexible. Second, agricultural standards must advocated that are convenient to test in much less time. Third, the agricultural standards of trade attributes should have a strong regional nature and be able to effectively adjust the standards according to the requirements of importing countries. Fourth, there should be strict regulation of packaging and transportation standards for agricultural products to meet the packaging and transportation requirements of importing countries. (iv) Promoting the construction of base admission and market access systems. China establishes the responsibility mechanism and commitment mechanism for agricultural product quality and safety and implements the quality and safety supervision responsibility to the producers, carries out the work of agricultural product base admission, then gradually implements the traceability management system for agricultural product quality and safety. It also strengthens the responsibility of agriculture standardization production quality and safety supervision at the grass-roots level of production areas, thereby establishing a supervisory responsibility mechanism for quality and safety inspection, supervision and testing, law enforcement and accountability. Moreover, it promotes production and sales docking for production areas admission and market access, and establishes and improves the systems for certificate and invoice, registration, identification management, inspection and testing, and delisting of unqualified products.13 (v) Comprehensively enhancing the regulatory capacity of the agriculture standardization production system. While improving the supervision network of the agriculture standardization production system, China constructs a supervision organization from the central government to provinces to villages and towns and even base village groups, thus setting up a safety supervision organization for agricul Circular of the Ministry of Agriculture on printing and distributing The Development Plan for Quality and Safety of Agro-Products During the Twelfth Five-Year Plan Period [J], Gazette of The Ministry of Agriculture of the People’s Republic of China, 2011 (6). 13

204 

W. CHEN

ture standardization production from top to bottom. It also combines grass-roots agro-technology extension system and veterinary system reform in each province to promote the construction of safety supervision stations for township or regional agriculture standardization production. By focusing on the construction of countylevel quality inspection stations, it improves the testing network, and strengthens self-discipline testing of v­arious agriculture standardization production and operation entities. Meanwhile, it improves the law enforcement system for agricultural product quality supervision, and establishes a sound system for information release, environmental supervision of production areas, quality and safety monitoring of agricultural products, supervision of testing institutions and inputs, emergency disposal, traceability of quality safety, supervision and law enforcement, and accountability, thereby constructing a long-term mechanism for safety regulation.14 (vi) Reinforcing the safety emergency management of agriculture standardization production. By strengthening the capacity building of agricultural standardization production safety emergency management, China comprehensively carries out propaganda, training, and drills of emergency plans; improves the ability to rapidly respond to predicting, forecasting, and early warning; and efficiently and accurately publishes authoritative information, thereby effectively preventing and disposing of agricultural safety production accidents, and actively coping with emergencies such as animal and plant epidemic diseases, agricultural product quality and safety, fishing vessels, and agricultural machinery safety, finally minimizing negative impacts. 2.5  The Operation Analysis of Agricultural Standardization Production System with Guaranteed Agricultural Product Quality at Its Core From the perspective of agricultural standardization activities with guaranteed agricultural product quality at their core, the level, scope, and content of the agricultural standardization production system are shown in Fig. 5.2. 14  Chen, Xiaohua. Objectives and Tasks of Quality Supervision and Control of Agricultural Products in the “Twelfth Five-Year Plan” and Recent Work Focus [J]. Quality and Safety of Agro-Products, 2011 (01).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

205

Fig. 5.2  Agricultural standardization production system structure

2.5.1

 he Structure of Agricultural Standardization Production T System with Guaranteed Farm Products Quality at Its Core From the perspective of the hierarchical structure of the agricultural standardization production system, the standards of agricultural standardization production are divided into government standards and non-governmental self-discipline standards. Moreover, government standards can be divided into national standards and local standards according to the management level of standardization authorities; self-discipline standards are divided into guild standards and enterprise standards. From the perspective of its scope, the standards involve the fields of crop production, fisheries, and animal husbandry. From the perspective of its content, the standards of agricultural standardization production consist of agricultural safety standards and quality standards. The agricultural quality standards involve agricultural foundations, resources and environment, agricultural inputs, production processes, product packaging, storage and transportation, testing methods, and market access. Overall, the

206 

W. CHEN

hierarchical structure, scope, and content of the agricultural standardization production system are intertwined and integrated to form an organized standard system for the whole agricultural production process from pre-production, production, and post-production to deep processing of products. 2.5.2

 perating Environment of the Standardization Production O System with Guaranteed Agricultural Product Quality at Its Core Under the rapid advancement of industrialization and urbanization, the degree of agricultural organization, scale, and standardization in China has increased with the unceasing enhancement of the agricultural modernization level. Moreover, agricultural development has paid more attention to its quality and safety. With more favorable external conditions, the construction of the agricultural standardization production system with guaranteed agricultural product quality at its core is also confronted with many risks and challenges. First, the standardization foundation is weak. Agricultural production in China is small and scattered, which is difficult to fundamentally change over a long period of time. Therefore, the construction of the agricultural standardization production system is an arduous process. In particular, the long-term guarantee of the quantity safety of farm products is the primary task for agricultural production. The agriculture industrial system and technical system are established with increasing production at their core. As a result, the construction of the agricultural standardization production system with guaranteed agricultural product quality at its core is seriously lagging behind, while the work of setting quality and safety standards is relatively slow. Second, risks and hidden dangers exist objectively. Due to a lag in the construction of the agricultural standardization production system with guaranteed agricultural product quality at its core, problems concerning quality safety of farm products such as excessive pesticide residues in vegetables and illegal drug additions have occurred from time to time. Therefore, it is crucial to establish a long-term governance mechanism. Third, quality requirements are becoming increasingly strict. With the constant upgrading of the consumption structure of farm products at home and abroad, the quality and safety requirements of farm products are increasingly strict. Besides, customers are increasingly concerned about farm products with quality problems. In consequence, the construction of the agricultural standardization

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

207

production system with guaranteed agricultural product quality at its core faces greater requirements.15 2.5.3

 perating Mechanism of the Standardization Production O System with Guaranteed Agricultural Product Quality at Its Core (i) Promoting the system construction to realize sustainable development of the agricultural standardization production system. First, to improve service capabilities, it is necessary to strengthen the construction of an organizational system. We need to integrate the agricultural service system to form a good atmosphere for the agricultural standardization production. China must accelerate the construction of the agricultural standardization production, constructing a working mechanism with strong government policy, departmental coordination, upper and lower linkage, and social participation. Through an in-depth study of new ideas and paths for the implementation of the agricultural standardization production during the period of accelerating the transformation of the agricultural development mode, China should also strive to promote innovations in systems, mechanisms, and institutions, thereby effectively strengthening the capacity building of agricultural standardization production management. In the implementation process, in accordance with the principle of localized administration, a job responsibility system is established at all levels to comprehensively improve the level of agricultural standardization production. Next, we need to strengthen the construction of professional teams to provide guarantees for the agricultural standardization production system. Second, it is necessary to establish a permit system for the producing area based on standardization production with guaranteed agricultural product quality. In all provinces and cities across the country, the permit system of agricultural production area should be comprehensively developed so that the responsibility for production areas will be strengthened, as will the actual effect of standardization production with guaranteed agricultural product quality at its core. Third, implementation of a market

15  Liu, Jianhua. Study on the Theory and Practice of Standardized Production of Safe Agrofood [D], Chinese Academy of Agro-sciences, 2010.

208 

W. CHEN

access system based on pollution-free farm products should be promoted. The permit systems of producing area and market access system are mutually complementary monitoring systems. While the former is the foundation and the latter the goal, two systems are linked and coordinated with each other. By constructing and implementing a market access system targeting pollution-­free farm products, agricultural product quality safety is strengthened, thereby creating a market environment for agricultural standardization production that guarantees the quality of farm products. (ii) Optimizing the standard system to increase the standard technology content. First, environmental quality and product standards for farm products should be scientifically set. With the changes in the consumption structure of urban and rural residents in China as well as the improvement of consumption levels, it is imperative to make innovations and breakthroughs in the methods of standard construction, formulation, and revision. Aiming at the whole process of quality control, scientifically developing and revising environmental quality standards and product standards for production areas should focus on the formulation of product standards, environmental quality standards, and refined production standards, thereby constructing a standard system so that mandatory standards are compatible with relevant regulations and adapt to the agricultural standardization production. Second, it is necessary to optimize the production operation procedures to strengthen the applicability of standards. Due to a wide geographical scope, agricultural production in China is greatly affected by natural resource endowments such as geographical location and climatic conditions. That is, agricultural production is very different between various regions, which requires zoning and hierarchical optimization of the manufacturing process procedures according to regional characteristics. With the rapid development of new agro-sci-tech, it is time to establish a working mechanism that can update the operating procedures and implement them according to the changes in the frontiers of agro-scitech, and closely combine agricultural production demands with standardized operational requirements to effectively ensure agricultural product quality safety, thereby achieving sustainable agricultural development.16 16   Ministry of Agriculture. Strengthening Comprehensively the Quality and Safety Management of Agricultural Products [J], Agriculture Engineering Technology (Agricultural

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

209

(iii) Cultivating main production bodies to spearhead modern agricultural production. First, it is necessary to support main production bodies according to local conditions to optimize the industrialization development mode. Agricultural standardization production is responsible for transforming traditional agriculture and building modern agriculture. With the improvement of consumer requirements and awareness, as well as the increasing demand for pollution-­ free farm products, main production bodies with better basic conditions and more strength can develop agricultural production according to the industrialization model, but this ideal still faces many difficulties, for example, weak production bodies, loose contractual relationship with farmers, underdeveloped land circulation policy, and imperfect agricultural insurance systems. Therefore, it is still necessary to adapt to local conditions, combine the regional characteristics of different regions and the level of economic development, optimize policy environment, give preferential treatment to relevant projects and policies, and support main production bodies to choose the appropriate industrialization form so as to ensure that agricultural standardization production becomes the dominant production mode, thus realizing the modern transformation of traditional agriculture. Second, service capabilities should be improved to support the production bodies to enhance modern management capabilities of agriculture. Promoting agricultural standardization production with guaranteed agricultural product quality at its core is a process of transforming the agricultural development mode and developing modern agriculture. It is necessary to promote largescale, organized, marketized, and branded modern production based on modern agricultural management concepts such as process management, key point control, and traceability. Chinese agriculture is primarily made up of a large number of small farmers. Besides small production scale, these farms are characterized by an uneven cultural quality of members, and low acceptance of sci-tech, thereby ­making production management difficult to carry out according to modernization organization and management ideas. That is, strengthening the overall service capacity building is a necessary condition for transforming traditional agriculture and developing modern agriculture. Therefore, it is important to use various service systems to train professional farmers, thus realizing the transformaProduct Processing Industry), 2011 (1).

210 

W. CHEN

tion of farmers into agricultural industrial workers, changing the situation of household contracting, decentralized management, and family farming, and finally forming a large-scale agricultural social production pattern. Third, it is necessary to strengthen government oversight to realize accountability systems as regards the traceability of farm products. In turn, the traceability of farm products can realize the information sharing of agricultural product quality, improve the transparency of the supply chain and transaction efficiency, enhance consumer confidence, strengthen the supervision and management ability over farm products quality and safety, and finally optimize the supply chain structure of farm products and effectively monitor any impact on human health and the environment. It is necessary to guide and support main production bodies to realize the “traceability of farm products”. On the one hand, it can encourage main production bodies to take the initiative to protect the quality and safety of farm products; on the other hand, adopting a traceability system and accountability system can improve the credit level of main production bodies and help them gain recognition from the agricultural product market, thereby achieving sound and rapid development of agricultural production.17

3   Constructing the System of Agricultural Non-­Point Sources Pollution Prevention and Control System with Preserving the Eco-­environment at Its Core Agricultural non-point sources pollution covers water environment pollution, soil contamination, and air pollution in a broad sense, but water eutrophication and soil degradation are considered the most sensitive and severe ecological problems in China. Scholars usually study agricultural non-point sources pollution from the perspective of an aspect of water pollution. Therefore, the agricultural non-point sources pollution discussed below also follows that line of thinking and refers primarily to water pollution. 17  Liu, Jianjun, Xu, Yong & Yu, Jianxiang. Practice and Discussion on Strengthening Comprehensive Supervision of Quality and Safety of Agricultural Products at Grass-Roots Level [J], Hunan Agro-sciences, 2013 (4).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

211

3.1  The Usage of Principal Production Factors That Affect Agricultural Non-Point Sources Pollution in China Point source pollution and non-point sources pollution are the main causes of water pollution. Urban and industrial sewage flowing through drainage networks plays a large part in point source pollution. Conversely, pollution in rural areas is produced by farmland fertilizers and pesticides, which then enters bodies of water through leaching and runoff, or atmospheric pollutants entering the water through the gravity sedimentation or wet sedimentation process as non-point sources pollution. At present, most rural areas in China do not have centralized sewage collection and treatment facilities. Therefore, most rural water pollution exists in the form of non-point sources pollution. As for water pollution in rural China, in addition to apparent physical pollution such as coloration and suspended solids, nutrient salt pollution and organic matter pollution are the main problems challenging rural ecosystems. Nutrient salt pollution mainly refers to eutrophication caused by nitrogen and phosphorus entering a body of water. Elements such as nitrogen and phosphorus in bodies of water can cause algae to multiply rapidly, resulting in the swift consumption of dissolved oxygen and causing large numbers of fish to die. Farmland fertilization and livestock manure are key sources of nitrogen and phosphorus pollution. These pollutants are dissolved, particulate, organic, or inorganic, which are usually measured by TN (total nitrogen) and TP (total phosphorus). After entering a body of water, the organic matter can decompose into CO2, H2O, and NH3 under aerobic conditions, thus consuming dissolved oxygen, causing the water to enter an anaerobic state. Under anaerobic conditions, the organic matter can be degraded into harmful substances such as H2S, which deteriorates the water quality. Some toxic organic substances can directly kill crops and aquatic organisms. Reducing organic pollution is usually characterized by CODcr (chemical oxygen demand determined by chromium method) and BOD5 (biochemical oxygen demand in five days). According to relevant domestic research over the past 15 years, the estimated results in Shanghai suburbs, Jiangsu, Zhejiang, Lancang, Chongqing, and Huangshi, and Three Gorges Reservoir areas indicate that among the three main pollutants TN, TP, and COD, absolute emissions of TN and COD are much higher than those of TP, and absolute emissions of COD are often the highest among the three.18 However, 18  Data sources: Zhang, Dadi, Zhang, Xiaohong, Zhang, Jiaqi & Shen, Genxiang. Integrated Research and Evaluation on Nonpoint Source Pollution in Shanghai Suburbs [J], Acta Agriculturae Shanghai, 1997 (1); Qian, Xiuhong, Xu, Jianmin, Shi, Jiachun &

212 

W. CHEN

since a water supply’s general tolerance for COD is higher than that for TN and TP, from the perspective of equal standard pollution load (which refers to the amount of non-polluted water needed in order to dilute pollutants to meet the requirements of water quality standards; the water pollutants of different natural environments can be adjusted to the same scale for evaluation by equal standards of pollution load), the equal standard pollution loads of TN and TP are much higher than that of COD. Even after a number of studies, equal standard pollution load of COD is lower than 10% in China. That is, from the perspective of the negative impact on water, the vast majority of pollutants are derived from emissions of nitrogen and phosphorus. Over the past 15 years, agricultural non-point sources pollution in China has been dominated by eutrophication, and emissions of TN and TP have become an urgent problem to control and reduce. Emissions of nitrogen and phosphorus in agriculture are mainly derived from chemical fertilizers, livestock and poultry, crop residues, and activities of daily life. Studies by different scholars in various regions agree that fertilizers and livestock are the main sources of nitrogen and phosphorus pollution in agriculture, accounting for 80–90% of total emissions. As for the actual proportions of fertilizers and livestock, however, conclusions in various studies are inconsistent. In different regions, chemical fertilizers or livestock may take the first place in turns. The high growth rate of chemical fertilizer application in China has been going on for many years, and there Liuxingmei. Comprehensive Survey and Evaluation of Agricultural Nonpoint Source Pollution in Hang-Jia-Hu Water-Net Plain [J], Journal of Zhejiang University (Agriculture and Life Sciences), 2002 (2); Ye, Fei & Bian, Xinmin. Evaluation of Jiangsu Water Pollution Caused by Agriculture Based on Equivalent Standard Pollution Index Method [J], Journal of Agro-Environment Science, 2005 (S1); Ou, Weixin, Gaojianhua & Yang, Guishan. Estimation of Nitrogen and Phosphorus Pollution Loads from Inland in the Coastal Zone of Yancheng [J], Ecology and Environment, 2006 (3); Chen, Chao, Huang, Dongfeng, Qiu, Xiaoxuan & Li, Weihua. Survey and Evaluation of Agricultural Non-point Source Pollution and Prevention-and-Cure Countermeasures in Middle and Upriver of Minjiang Drainage Area [J], Journal of Agro-Environment Science, 2007 (S2); Li, Jiexia, Yang, Zhimin, Chen, Qinghua, Chen, Yucheng & Zhao, Zhongjin. Spatial Distribution of Agricultural Non-Point Source Pollution in Chongqing [J], Journal of Southwest University (Natural Science Edition), 2008 (7); Yan, Suding. Source apportionment and spatial heterogeneity of agricultural non-point source pollution in Huangsh, Hubei Province [J], Transactions of the Chinese Society of Agricultural Engineering, 2008 (9); Liu, Guangde, Zhao, Zhongjin & Li, Qilin. Study on the Status of Agricultural Non-Pointing Source (NPS) Pollution in Three-Gorge Area and Its Control Countermeasures[J], Chinese Journal of Ecoagriculture, 2004 (2).

213

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

is a lack of effective means to control the loss of chemical fertilizers and pesticides through runoff. While the centralized cultivation of livestock and poultry, the treatment of manure, and the comprehensive utilization of technologies are gradually popularized, the loss of nitrogen and phosphorus caused by fertilizer application in the future may gradually become the primary problem of agricultural non-point sources pollution control in China. Figures 5.3 and 5.4 respectively show the trends in total amounts of fertilizers and pesticides applied in China overall as well as Hunan Province in recent years. It can be seen from the trends shown in Figs. 5.3 and 5.4 that Hunan Province has maintained a relatively consistent growth trend with the whole country in terms of the input of polluting factors such as fertilizers and pesticides. From the total increase over the years, the increase of pesticides is higher than that of chemical fertilizers. From the growth rate in the past five years, the increase in the pesticide application rate has begun to slow down, and the total application rate has declined in certain years, while the rapid growth of chemical fertilizer application has not slowed 160 140

5000

120 4000

(10,000 tons)

(10,000 tons)

6000

100 80

3000

60

2000

40 1000

20 0

19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10

0 (Year) The total amount of fertilizers applied in China

The total amount of pesticides applied in China

Fig. 5.3  National changes in the total amount of fertilizers and pesticides applied (1991–2010). (Data sources: China Statistics Yearbook 2011 (China Statistics Press, 2011); Ministry of Agriculture of People’s Republic of China. China Agricultural Development Report 2007 (China Agriculture Press, 2007))

214 

W. CHEN

12

200

10 150

8

100

6

(10,000 tons)

(10,000 tons)

14

250

4 50 0

2 2002

2003

2004

2005

2006 (Year)

The amount of fertizers applied in hunan

2007

2008

2009

2010

0

The amount of pesticides applied in hunan

Fig. 5.4  Changes in the total amount of fertilizers and pesticides applied in Hunan Province (2002–2010). (Data sources: Village Economies Survey Party of Hunan. Hunan Rural Statistical Yearbook [M](2004–2011), 2011)

down. Before the year 2000, the use of chemical fertilizers and pesticides in China was in a period of high growth (the annual application rate of chemical fertilizers and pesticides increased by 45% and 6% respectively). After 2000, the growth rate was adjusted back (the annual application rate of chemical fertilizers and pesticides increased by 3% and 27% respectively); the increase in Hunan was in a period of rapid growth before 2004 (the annual application rate of fertilizer and pesticide increased by 5% and 122% respectively), and then the growth rate began to be moderate (the annual application rate of fertilizer and pesticide increased by 26% and 14% respectively). At present, the average application rate of agricultural fertilizers in China exceeds 30 kg/mu, and that of pesticides has reached approximately 1 kg/mu. Because the multiple cropping index of Hunan Province is much higher than the national average (according to estimated areas of farmland and planting area, multiple cropping index of Hunan Province in 2009 was about 2.12), the average application amount of chemical fertilizers and pesticides in Hunan Province in 2010 reached 41.61 kg/mu and 2.09 kg/mu respectively (due to a lack of 2010 farmland data, 2009 data was used). Whether in Hunan Province or the country as a whole, the

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

215

application rates of chemical fertilizers and pesticides have exceeded the safe application ceiling and appropriate levels determined by developed countries, and thus the problem of agricultural non-point sources pollution also needs to be solved urgently. 3.2  Estimation of the Current Status of Major Agricultural Non-Point Sources Pollutants in China According to the above analysis, most TN and TP emissions are derived from chemical fertilizer application as well as livestock and poultry farming, and COD is mainly derived from livestock and poultry farming (about 75% of total COD emissions),19 which accounts for the main agricultural non-point sources pollutants in China. That is to say, compared with the sources of daily life, the impact of production sources on non-point sources pollution is more prominent. Therefore, the current status of agricultural non-point sources pollutants in China and Hunan Province is estimated based on chemical fertilizers and livestock. For the application of chemical fertilizers, the amount of nitrogen, phosphate, and compound fertilizers (assuming it includes 30% N and 65% P2O5) is estimated, and the leakage rate is approximately 20% nitrogen and 5% phosphate (see Table 5.1). These statistics are results from the China Statistical Yearbook and Hunan Statistical Yearbook databases. As statistical yearbooks only count breeding stocks of cattle, horses, donkeys, mules, pigs, and sheep, according to Dr. Yang Shunshun’s research,20 the excretion amounts of different types of livestock are calculated by a weighted combination according to the proportion of feeding (assuming that the proportion of breeding is unchanged according to 2005). Moreover, the excretion amount of unmeasured poultry is converted according to the proportion of total discharge in the total number of livestock and poultry. The leakage rates of TN, TP, and COD emissions from livestock and poultry are estimated at 20%, 13%, and 11% respectively. The results are shown in Tables 5.2 and 5.3. 19  Li, Jiexia, Yang, Zhimin, Chen, Qinghua, Chen, Yucheng & Zhao, Zhongjin. Spatial Distribution of Agricultural Non-Point Source Pollution in Chongqing [J], Journal of Southwest University (Natural Science Edition), 2008 (7); Yan, Suding. Source apportionment and spatial heterogeneity of agricultural non-point source pollution in Huangsh, Hubei Province [J], Transactions of the Chinese Society of Agricultural Engineering, 2008 (9). 20  Yang, Shunshun. Rural Environmental Management Simulation Based on the Analysis of Agricultural Households’ Behavior [M], Beijing: Science Press, 2012. For details, Cf. Table 4–16 and Table 4–18 therein.

216 

W. CHEN

Table 5.1  Estimation of chemical fertilizer application and loss of TN in China and Hunan Province Items

Application amount of nitrogen

Application amount of phosphate

Application amount of compound fertilizers

Leakage amount of TN

Leakage amount of TP

China Hunan

2353.7 110.3546

805.6 26.7177

1798.5 59.0346

578.65 25.61

43.11 1.42

Note: The data on chemical fertilizer application is from China Statistical Yearbook 2011 (China Statistics Press 2011)

Table 5.2  Conversion of TN, TP, and COD emission factors of main livestock and poultry Items

Cattle Horse Donkey Mule Pig Sheep

Excretion Excretion amounts of amounts of N P (kg/head/ (kg/head/ year) year) 47.6 68.64 68.64 68.64 5.86 11.23

9.769 4.925 2.868 2.868 1.434 1.052

Excretion amounts of COD (kg/ head/year) 239.547 109.883 91.871 91.871 27.49 3.879

The proportion of large livestock emissions to total livestock emissions (according to the 2005 breeding ratio) TN

TP

COD

88.35%

87.27%

90.79%

Note: Each type of livestock in the table is converted into different sub-categories. For example, among the excretion rates of N, the highest is cattle at 74.41 kg/head/year, the lowest is buffalo at 45 kg/head/ year; a sow is 19.06 kg/head/year, while a hog is only 4.87 kg/head/year because of a short feeding period. Therefore, for livestock with a feeding period of less than one year, statistics should be made on the basis of slaughter. However, due to insufficient data in the Hunan Statistical Yearbook, in order to facilitate comparison, this section is estimated according to number of livestock

Based on a comparison of Tables 5.2 and 5.3, it can be seen that in terms of nitrogen and phosphorus loss, the application of chemical fertilizers contributes most to this form of pollution throughout the country.21 However, the situation in Hunan Province is considerably different from 21  Yang, Shunshun, Huang, Kai & Yue, Xiaofang. Structural Analysis of China Water Footprint and the Input/output Analysis Framework [J], Environmental Science & Technology, 2012 (10).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

217

Table 5.3  Estimation of TN, TP, and COD loss in livestock and poultry breeding in China and Hunan Province (2010) National Estimate

Cattle Horses and Camels Donkeys Mules Pigs Sheep Total The Total Conversion Amount of Livestock and Poultry Source Total Loss Hunan Estimate

Cattle Horses Donkeys Mules Pigs Sheep Total Production The Total Conversion Amount of Livestock and Poultry Source Total Loss

Total amount of stock at the end of the year (10,000 heads) 10,626.4 702.7 639.7 269.7 46,460 28,087.9

Total amount of stock at the end of the year (10,000 heads) 435.2 4.26 0.67 0.18 4044.86 509.60

TN production (ten tons)

TP production (ten tons)

COD production (ten tons)

505.8166 48.2333 43.9090 18.5122 272.2556 315.4271 1204.1539 1362.94

103.8093 3.4608 1.8347 0.7735 66.6236 29.5485 206.0504 236.11

2545.5222 77.2148 58.7699 24.7776 1277.1854 108.9530 4092.4229 4507.57

272.59 TN production (ten tons)

30.69 TP production (ten tons)

495.83 COD production (ten tons)

20.7155 0.2924 0.0460 0.0124 23.7029 5.7228 50.4920 57.15

4.2515 0.0210 0.0019 0.0005 5.8003 0.5361 10.6113 12.16

104.2509 0.4681 0.0616 0.0165 111.1932 1.9767 217.9670 240.08

11.43

1.58

26.41

The number of livestock here is from China Statistics Yearbook 2011 (China Statistics Press 2011) and Hunan Rural Statistical Yearbook 2011

that of the whole country. As for TP in Hunan, the source of breeding is higher than the source of fertilizers. Therefore, when dealing with agricultural non-point sources pollution control in Hunan Province, the corresponding strategies for livestock manure management and comprehensive utilization should be fully formulated.

218 

W. CHEN

In order to illustrate the grim situation of agricultural non-point sources pollutants in China, an index of the largest equivalent pollution load is introduced. Its calculation formula is as follows: MP = max ( P1 , ,Pn ) , Pi =

Mi × 103 , ( i = 1, , n ) C0 i



In the above formula, MP is the maximum equivalent pollution load in cubic meters; Pi, Mi, and C0i are respectively the equivalent pollution loads (cubic meter), emissions (ton), and environmental quality standards (mg/L) of the pollutant i. According to the Class III standard limit of surface water environmental quality standard (GB3838–2002), the concentrations of TN, TP, and COD are 1 mg/L, 02 mg/L, and 20 mg/L respectively. According to the calculation, in these three types of pollutants, TN’s equivalent pollution load is the maximum equivalent pollution load. In 2010, the largest equivalent pollution load caused by chemical fertilizer application and livestock and poultry farming in China exceeded 9 trillion cubic meters, which was nearly 30 times that of agricultural water consumption. It is clear that the agricultural production process has exerted tremendous pressure on the agricultural environment. It is difficult to absorb and get rid of pollution in a natural way. Therefore, necessary policy intervention is the only way to control and solve the problem of agricultural non-point sources pollution. 3.3  Analysis on the Evolution Tendency of Main Agricultural Non-Point Sources Pollutant Emissions in China According to relevant research,22 extreme points in averaging theory of chemical fertilizers, pesticides, and agricultural plastic film inputs in China are 53.37 kg/mu, 1.6 kg/mu, and 2.91 kg/mu respectively. However, as long as the knowledge is not completely rational, in the case of objective disturbance, the optimal judgment of farmers on factor inputs may deviate far from the theoretical extreme point. The fertilizers, pesticides, and agricultural plastic film inputs may maintain an equilibrium level when 22  Yang, Shunshun. Rural Environmental Management Simulation Based on the Analysis of Agricultural Households’ Behavior [M], Beijing: Science Press, 2012.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

219

reaching 3.7 kg/mu, 1.1 kg/mu, and 1.9 kg/mu respectively. After that, there will be no obvious high-speed upgrades. Using this kind of analysis method, we take Hunan Province as an example to establish a C-D production function that characterizes the input and output relationship of agricultural factors, and to solve the non-linear target optimization problem with non-linear constraints, finally exploring the changes in production factor inputs and the development trend of agricultural non-point sources pollution problems. Table 5.4 details the output of major farm products, as well as the input of various factors in Hunan Province from 2002 to 2010. Limited by the data, the output of farm products is based on the total amount of grain, cotton, oilseeds, hemp, sugar cane (not beets), tobacco leaves, silkworm cocoons, tea, and fruits in the table. Lacking the data on farmland after 2009, the land area is calculated according to the planting area; the data on agricultural plastic films in 2006 is also lacking, and hence it is calculated by the average over the years. Furthermore, lacking the data on areas of machine-farmland in 2007 and agricultural diesel in 2006, the mechanical input is characterized by the total power of agricultural machinery at the end of the year; the input of water resources is characterized according to the actual irrigated areas rather than the ratio of effective irrigated areas to farmland areas (the data on farmland areas in 2010 is calculated according to that from 2009); the disaster situation is characterized by the ratio of disaster areas rather than occurrence areas to planting areas; labor input is characterized by total number of agricultural employees rather than total rural labor resources; fertilizer input is calculated according to its purity. The C-D production function is as follows, and the input and output units of various factor inputs are transformed into small dimensions:



Y = eα0 x1β1 x2β2 x3β3 x4β4 x5β5 x6β6 x7β7 x8β8 LnY = α 0 + β1 Lnx1 +  + β8 Lnx8

These two formulas are the C-D production function and its logarithmic form, and Y is the output of farm products (kg); α0 is the regression constant; x1 to x8 are the planting area (mu), fertilizer input (kg), pesticide input (kg), film input (kg), irrigation area ratio (actual irrigated area/cultivated area), total mechanical power (kW), area ratio of disaster area (the area affected by the disaster/planting area), and the employees (person); β1 to β8 are the output elasticity of x1 to x8 respectively. For the logarithmic form of

3037.9 3277.9 3449.4 3501.8 3618.3 3837.3 3742.7 3936.4 3970.9

2002 2003 2004 2005 2006 2007 2008 2009 2010

7779.22 7731.24 8188.67 8336.37 8531.93 8536.44 7939.51 8019.3 8216.1

Sowing area (1000 hectares) 1,843,234 1,883,338 2,031,852 2,098,670 2,121,436 2,195,837 2,233,840 2,316,037 2,365,719

Fertilizer input (tons)

86,972 95,360 109,493 113,250 114,513 109,142 112,750 115,352 118,762

Pesticide input (tons) 31,078 33,484 39,111 39,899 41,860 48,700 49,328 50,837 51,083

Film input (tons) 0.6436 0.6537 0.6600 0.6634 0.6587 0.6663 0.6685 0.6741 0.6683

Irrigation area ratio

24,980,879 26,644,540 29,239,260 31,898,640 34,166,123 36,844,291 40,211,398 43,526,391 46,515,488

Total mechanical power (kw)

This is calculated based on Hunan Rural Statistical Yearbook (2004–2011) by Village Economies Survey Party of Hunan

Farm products (10,000 tons)

Year

0.2046 0.2472 0.1174 0.1929 0.1514 0.2897 0.2897 0.1953 0.2164

Area ratio of disaster area

Table 5.4  Inputs and outputs of agricultural factors in Hunan Province over the years 2002–2010

2019.6 1997.67 1975.89 1951.9 1934.29 1877.91 1877.91 1867.33 1861.85

Practitioners (10,000 people)

220  W. CHEN

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

221

production function, multivariate linear regression is performed under SPSS. Since the amount of time series data is too small, when the independent variable is 8, the degree of freedom is 0, so only 6 independent variable regressions are selected. Moreover, the total mechanical power and the employees do not enter the regression equation (since the total mechanical power is less able to reflect the actual mechanical manpower input, and the number of employees should be more idealized to use labor hours). Calculated under SPSS16, Table 5.5 is presented as follows. As shown in Table 5.5, under the forced entry method, the t-value of all the independent variables is low, and therefore unable to achieve the ideal regression effect. Using backward elimination and forward entry, the independent variables with the lowest t-value are removed, and the independent variables that do not significantly reduce the t-value of other independent variables are added (if constant term is not significant, independent variables do not need to be removed). When the significance level is relaxed to 50% (even at the 20% significance level, it is difficult to obtain a regression equation with more than one independent variable satisfying the condition. The 50% significance level also means that the regression result has no practical significance, and is only used as a trial in this study to further supplement the data), the following regression equation can be obtained: Y = e 9.235 x10.1531 x20.309 x40.318



In this equation, only three independent variables, planting area, fertilizer input, and film input, are retained at the 50% significance level, that is, six independent variables are not strong in explaining the output Y, but these three independent variables have relatively strong explanatory powers for agricultural growth. The output of farm products in Hunan Province Table 5.5  Production function regression coefficient and statistical test results Item

Constant term α0

Sowing area β1

Fertilizer input β2

Pesticide input β3

Film input β4

Irrigation area ratio β5

Area ratio of disaster area β7

Regression coefficient T-value

10.185

0.242

0.340

−0.045

0.213

1.447

0.003

0.893

0.514

0.458

−0.120

0.575

0.509

0.061

222 

W. CHEN

may be further increased with the addition of planting area (replication coefficient) as well as the high-intensity input of chemical fertilizers and plastic film. As the purchase prices of different production factors and the selling prices of different crops are constantly fluctuating, according to the research results of Dr. Yang Shunshun, the extremes of planting areas, fertilizer inputs, and film inputs in Hunan Province, and the average selling prices (price in 1990) of crops and production factors are solved under the condition of profit maximization.23 Assuming that the upper limit of planting areas is 2.4 times that of cultivated areas (i.e. the multiple cropping coefficient is about 2 times the national average), and the upper limit of the input intensity of fertilizer and film per unit area (utilizing the input intensity of unit cultivated area to reverse inference) is regarded as a constraint: MAX ∏ = 0.85e 9.235 x10.153 x2 0.309 x4 0.318 − 2.5 ⋅ x2 − 5.51 ⋅ x4 x x s.t. x1 ≤ 1.3646 × 108 ; 2 ≤ 21; 4 ≤ 0.85 x1 x1





Solving the above formula in MATLAB (∏ in the above formula represents the profit), at first, transforming it into a minimization problem and establishing the objective function M file fminc.m [x (3) refers to the independent variable x4]: functionf = myfun ( x ) f = 2.5 ⋅ x ( 2 )

+ 5.51 ⋅ x ( 3) − 10249.99 ⋅ x (1)

0.153 ⋅ x ( 2 ) 0.309 ⋅ x ( 3) 0.318 ∧



∧

Writing a non-linear constraint file fminest.m: function [ c,ceq ] = mycon ( x ) c (1) = ∫ x ( 2 ) / x (1) − 21

c ( 2 ) = x ( 3) / x (1) − 0.85 ceq = 0;



 Ibid.

23

∧



5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

223

Command line input: a = [1 0 0; 0 − 1 0; 0 0 − 1]; b = [136460000; 0; 0]; % a, b are linear constraints. x0 = [123241500; 2365719000; 51083000]; initial value of %, calculated by 2010 value. lb = zeros (3, 1); % non-negative condition

[ x, fval,exitflag,output, lambda ] = fmincon (@ fminc, x0, a, b, [ ] , [ ] , lb, [ ] ,@ fmincst ) The optimal solution can be solved as 1.365 × 108 for the sowing area in the province and 2.87 × 109 kg for fertilizer input (up 21.6% from 2010), 1.16 × 108 kg for film input (up 127.45% from 2010), and 4.61 × 1010 kg for crop yield (up 16.12% from 2010). The factors have all reached the upper limit of the constraint. That is to say, in the case of trial calculation, due to the high elasticity of production factors, the constraint of factor cost on factor input is difficult to reflect. In the future, fertilizers and film will have large room for growth in Hunan Province, but the increase of fertilizer input will bring more serious problems such as agricultural nitrogen and phosphorus emission control. Moreover, the film input may maintain a long period of growth. Therefore, the rational and scientific utilization and recycling of film is particularly critical in the future. For the above reasons based on relevant data, the explanatory power of the output of agricultural production factors is not strong, and thus the output elasticity used is of little practical significance. In conclusion, this issue still awaits further data collection and research. 3.4  Constructing the System of Agricultural Non-point Sources Pollution Prevention and Control to Preserve Eco-Environment To construct the system of agricultural non-point sources pollution prevention and control, China must fully recognize the two most basic properties of its agricultural production. The first is the small-scale agricultural development mode of single-family management characterized by a high degree of freedom, dispersion, and small scale, resulting in a low degree of farmer organization. The lack of collective consciousness leads farmers to

224 

W. CHEN

independently fight for the prevention and control of agricultural non-­ point sources pollution. Therefore, it is difficult to achieve unified prevention and control. Second, with the large-scale outflow of rural labor to cities and industries, agricultural laborers are aging and their environmental awareness is relatively low. Moreover, these individuals highly depend on chemical fertilizers and pesticides, which are easy to use, but their willingness and ability to accept the new concept of “resource and ecologically sound agriculture” and the application of new technologies is weak.24 Therefore, this is a groundbreaking and complex systematic project involving many stakeholders, covering broad areas, and having great difficulties in institutional innovation. In a large agricultural country like China, it is more necessary to coordinate and establish a strong support system at the country level with the strategic goal of “constructing ecological civilization”. 3.4.1 Public Financial System It is necessary to elaborate on the leading role of finance in the prevention and control of agricultural non-point sources pollution. Through fiscal transfer payments, special financial funds, project support, preferential credit, and agricultural eco-environment taxes and fees established by central and local government, China should improve financial support policy for pollution-free farm products, green foods, and organic foods, thereby constructing a three-dimensional public financial system for agricultural non-point sources pollution prevention and control. On the basis of existing transfer payments by the central government, the fiscal reduction and development restrictions caused by the prevention and control of agricultural non-point sources pollution in the main functional areas of agriculture are regarded as an important factor in calculating the funds for fiscal transfer payments. It is also imperative for the central government to increase financial transfer payments and fund subsidies for agricultural non-point sources pollution prevention and control in the main functional areas of agriculture, establishing special funds for transfer payments. In the meantime, environmental management and protection, environmental monitoring, loss of enterprise closure, ecological immigration, ecological industry adjustment, water conservancy construction, and drinking water safety in the main functional areas of agriculture will be compensated 24  Wang, Ou & Jin, Shuqin. The Prevention and Control of Agricultural Non-Point Pollution: International Experience and Enlightenments [J], World Agriculture, 2002 (1).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

225

through transfer payments. China should increase support for projects in the main functional areas of agriculture, and compensate for environmental governance projects, industrial restructuring, energy conservation and emissions reduction projects, soil remediation projects, and soil and water conservation projects. It also should strengthen taxation and credit support, formulate preferential credit policies for the main functional areas of agriculture, and enhance tax incentives and credit policy support in public services and infrastructure construction. 3.4.2 Market Regulation System In addition to strengthening the compensation for public finance transfer payments, it is necessary to improve the price mechanism for agricultural ecological products and paid use of agricultural resources, and to establish a market regulation system based on agro-ecological value to promote the commercialization of agro-ecological services, alleviate the government’s fiscal pressure, and finally expand the funding channels for agro-eco-­ environmental protection. Moreover, China should promote the property rights transaction of agricultural ecological resources, accelerate the cultivation of an agricultural ecological resources trading market, promote the construction of an agricultural ecological resources trading platform, open up the agricultural ecological factor market, and explore trials for using the right to resources, emissions trading, and carbon trading. China also needs to develop a regional market-based compensation pilot for the distribution of pollutant discharge indexes, establish a trading mechanism for the sale, transfer, and lease of the right to use ecological resources, and achieve the capitalization of agricultural ecological resources, the marketization of agricultural eco-environment factors, and the commercialization of agricultural ecological product trading. Under the premise of total control over agricultural non-point sources pollution, it is time to carry out emissions trading between industrial point source pollution and agricultural non-point sources pollution, as well as transactions between non-point sources pollution and emissions trading of non-point sources pollution, and to establish the distribution pilots for agricultural pollutant emission index in regions, gradually implement agricultural production emission trading under government supervision, so that the price of environmental factors can truly reflect its scarcity, and motivate agricultural business entities to seek new technologies and methods. This should promote cross-border consultation of ecological resources, and establish a paid distribution mechanism and a trading

226 

W. CHEN

market for the use of agricultural ecological resources in regions, thereby guiding and encouraging agricultural eco-environmentalists and beneficiaries to achieve reasonable ecological compensation through voluntary consultation. This should improve the market intermediary service system, optimize market services such as financing, assessment, authentication change, and dispute resolution of agricultural ecological resources, and strengthen the flow and exchange of ecological products in agro-­ ecological functional zones, thus realizing ecological values through market mechanisms, and strengthening the protection and development of the agro-eco-environment. Meanwhile, it is important to explore the green taxation system, guide enterprises and the public to participate in ecological compensation construction of agro-ecological functional zones, and then realize the reasonable coordination between the government’s drive for ecological compensation and the primary force of markets. China will promote compensation for agricultural ecological damage, and thus for behaviors that destroy ecological resources and the environment, in addition to being investigated in accordance with the law, the criminal would pay the compensation for ecological resources and the environment at market prices. 3.4.3 Technological Support System It is necessary to increase scientific and technological support for agricultural non-point sources pollution prevention and control so that there will be more scientific and technological development and innovations for agricultural non-point sources pollution prevention and control, as well as technological innovations for farmland restoration, energy conservation, and emissions reduction. It is also imperative to develop standardized production technologies, new environmental protection technologies, and new energy technologies for pollution-free, green, and organic foods. Moreover, China should vigorously promote technologies for soil diagnosis, plant nutrition diagnosis, soil testing, and formula fertilization; accelerate research, development, and application of agricultural waste recycling technologies such as high-efficiency and low-toxicity pesticides, biological pesticides, plant-derived pesticides, pollution-control technologies for livestock and poultry breeding, and straw agricultural film; and continuously reduce the application of pesticides and fertilizers and the discharge of pollutants. Consequently, China should also strengthen research on the statistical monitoring index system for natural resources and agricultural non-point sources pollution prevention and control, as well as on

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

227

agricultural product quality standard systems, thereby effectively improving its monitoring of agricultural non-point sources pollution prevention and control. For the main functional areas of agriculture, the improvement of the automatic monitoring systems for land and water quality should be accelerated; the monitoring and evaluation index system for rural eco-­environment safety will be formulated and improved; information on dynamic monitoring and evaluation of agricultural non-point sources pollution will be provided in a timely manner, and a statistical information release system and a predictive and early warning mechanism will be gradually established to improve the scientific and technological level of agricultural non-point sources pollution prevention and control. Take Hunan Province as an example. The main problem of agricultural non-point sources pollution is still the eutrophication caused by the loss of nitrogen and phosphorus nutrients. In agricultural production sources, about 70% of nitrogen and 50% of phosphorus in Hunan Province are derived from the application of fertilizers and the rest from livestock and poultry farming. The multiple cropping coefficient of Hunan Province is much higher than the national level. Therefore, the negative impact of high-intensity application of chemical fertilizer on soil is more prominent. The nitrogen and phosphorus applied by chemical fertilizers are lost with rainfall, leaching, and surface runoff. Unless engineering methods are used, it is difficult to achieve the interception and better processing of these pollutants. Meanwhile, the cost is relatively high. For the application of chemical fertilizers, the proportion of formulated fertilization should be further increased, fertilizer should be rationally applied, a fertilizer structure should be adjusted, and fertilizer utilization efficiency should be improved. At present, 70% of nitrogenous fertilizers in Hunan Province are still urea, and the nitrogen emission factor of urea ranks first among various nitrogen fertilizers. Hunan Province can reduce the proportion of urea in nitrogen fertilizer application, or guide farmers to simultaneously use urease inhibitors to reduce urea hydrolysis, thereby increasing the utilization of nitrogen. Different from farmland fertilizer application, livestock and poultry breeding can realize the transformation from non-point sources to point sources through technical measures, so as to achieve effective treatment. Centralized farming, treatment, and comprehensive utilization modes should be promoted, and manure management should be conducted effectively, especially its storage and returning application. In addition, the construction of the rural environmental protection infrastructure should be strengthened. Centralized or decentralized rural

228 

W. CHEN

domestic sewage and garbage treatment facilities should be built according to the distribution characteristics of villages. Rural domestic sewage is relatively organic, and rural land resources are abundant, making it easy to adopt low-cost biological treatment technologies, for example land treatment. 3.4.4 The System of Social Participation Prevention and control of agricultural non-point sources pollution is a systematic project for the whole society. Only through the extensive participation of the whole society can the process of rural eco-environmental protection and governance be promoted. Citizens, social organizations, and community groups can participate in government programs, influence enterprises’ production methods, and help those who are considered profit losers in agricultural ecological construction. Therefore, social forces can play a role in the prevention and control of agricultural non-­ point sources pollution, and finally promote the socialization of agricultural non-point sources pollution prevention and control. China should establish a non-profit fund for agricultural non-point sources pollution prevention and control, fully mobilize the enthusiasm of social forces, and apply for the support of the international green environmental protection fund. It should also take advantage of the media’s role in fostering public opinion to highlight the harm and causes of agricultural non-point sources pollution, and take the standards and production technologies of pollution-­ free farm products and green and organic foods as important content to carry out education on agricultural eco-environment and publicity on agricultural non-point sources pollution prevention and control, thereby improving the recognition, environmental awareness, and participation awareness of the whole society. Moreover, social organizations should provide technical and legal assistance for agricultural non-point sources pollution prevention and litigation for the public, and offer consulting and intermediary services for market transactions of agricultural pollutant emissions. In the meantime, citizens and social organizations can participate in government hearings about agricultural non-point sources pollution prevention and control, and take part in the formulation of relevant compensation policies and accountability systems to express public demands for agricultural non-point sources pollution prevention and control. Based on citizens’ and social organizations’ participation in performance evaluation and supervision of agricultural non-point sources

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

229

pollution prevention and control, the policies related to agricultural non-­ point sources pollution will be constantly improved. 3.4.5 Institutional Guarantee System As a groundbreaking task, promoting a top-level design and constructing a system of agricultural non-point sources pollution prevention and control requires systematic planning and overall consideration. Functional departments under the Chinese government as well as provincial governments should determine the main functional areas of agriculture, clarify medium- and long-term goals, introduce relevant policies and measures, and establish a unified rural eco-environmental protection plan and agricultural environmental assessment system. Therefore, formulating specific standards for agricultural non-point sources pollution prevention and control has become an important part of agricultural development planning at all levels of government, which can promote agricultural environmental protection and ecological construction. Meanwhile, China should formulate and improve relevant laws and policies, perfect the quality and safety assessment system for farm products, establish an environmental impact assessment system and clean production system for agricultural production processes, and initiate the environmental labeling system for farm products. Therefore, Chinese farmers, sellers, and customers will have substantial laws and rules to follow. The government should also intensify law enforcement, and conduct enforcement inspection, supervision, assessment, evaluation, and accountability for the implementation of laws and policies related to agricultural non-point sources pollution prevention and control, thereby continuously promoting the institutionalization and legalization of agricultural non-point sources pollution prevention and control. 3.4.6 Administrative System China should innovate the management mechanism for urban—rural integrated rural ecological protection, incorporate the responsibility of agricultural non-point sources pollution prevention and control into economic and social development evaluation and assessment systems at all levels of government, establish a self-governance mechanism for ecological protection of rural areas, and adopt village regulations and agreements to strengthen mutual supervision and restraint on agricultural non-point sources pollution prevention and control, thereby forming a working mechanism characterized by the unified leadership of the Chinese

230 

W. CHEN

government, the division of labor within relevant departments, and the participation of the whole society. Moreover, China should also construct a management system for agricultural non-point sources pollution prevention and control, and establish consultative and coordinating structures of relevant departments across all levels of government, thus forming a cross-­ regional coordinated management system for agricultural non-point sources pollution prevention and control. Furthermore, it is necessary to establish a platform for management and coordination in order to promote cooperation and exchange of agricultural non-point sources pollution prevention and control, and strengthen the protection of agricultural ecological resources, as well as joint prevention and control of agricultural non-point sources pollution across the administrative regions, and then encourage cross-regional exchanges and cooperation on information dissemination, joint meetings, joint emergency monitoring, and coordination of information dissemination for agricultural non-point sources pollution prevention and control. Meanwhile, it is vital to guide and encourage beneficiary areas and agro-eco-environmental protection areas to establish the relationship between horizontal cooperation and interest compensation through voluntary negotiation.

4   Constructing the System of Disaster Prevention and Mitigation with Constructing Irrigation and Water Conservancy at Its Core The academic community’s understanding of disasters has developed from “disaster factors” to “disaster factors plus disaster bodies” to “integrated disaster”. As a requisite part of the natural disaster system, human activities have the effect of “zooming in” and “zooming out” on natural disasters. Agricultural natural disasters are formed by the combination of and interaction between hazard-formative environments (natural environment), disaster factors (various types of disasters), and disaster bodies (agricultural production and farmers). In the case of insufficient understanding and control of disaster factors, improving the stability of hazard-­formative environments, reducing the vulnerability of disaster bodies, and enhancing their resilience are effective ways to solve damage problems of agricultural disasters (mainly floods and droughts). Therefore, in the process of transforming the agricultural development mode and constructing a “resource and ecologically sound” agricultural production system, it is necessary to focus on

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

231

improving sustainable development capacity of agriculture, pay attention to how we construct the system of disaster prevention and mitigation with constructing irrigation and water conservancy at its core, reduce the vulnerability of agricultural production and farmers in the face of agricultural natural disasters, and improve the efficiency and level of China’s agricultural production in response to various natural disasters. 4.1  The History and Current Situation of Irrigation and Water Conservancy Construction in China After the founding of the People’s Republic of China, the construction of irrigation and water conservancy has experienced five evolutionary stages: from the founding of the People’s Republic of China to the restoration of irrigation and water conservancy in 1955; the period of continuous development of irrigation and water conservancy construction from 1955 to the end of the 1970s; the period of stagnant development from the late 1970s to the late 1980s; the period of institutional change in the system of irrigation and water conservancy construction in the early 1990s; and the forming period of current irrigation and water conservancy construction pattern since the mid-1990s.25 Since the founding of the People’s Republic of China, the country has attached great importance to the construction of water conservancy and the prevention of water damage. In 1950, the Ministry of Agriculture held a working conference on irrigation and water conservancy, thereby laying down its working policy: “…should widely mobilize the masses, vigorously restore and renovate water conservancy and irrigation engineering, improve the original management institutions, strengthen irrigation management, gradually achieve rational use, establish and improve various systems”. Since that time, farmers have engaged in constructing large-scale water conservancy with great enthusiasm. On the one hand, farmers have vigorously rectified the original irrigation and drainage projects. On the other, mass water conservancy and irrigation construction had been carried out extensively, with small-scale water conservancy as the priorities. From the winter of 1949 to the spring of 1953, more than 600,000 small ponds were repaired and renovated, more than 800,000 wells were drilled, 25  Tang, Zhong & Li, Zhongmin. Who Should Invest in Irrigation System as Infrastructure? An Economic Interpretation of the Absence of the Investor [J], Issues in Agricultural Economy, 2005 (2).

232 

W. CHEN

more than 500,000 waterwheels using humans or animals as a source of power were lent, more than 30,000 horsepower of pumps were installed, and more than 280 irrigation and drainage projects were restored and constructed. Moreover, with improved irrigation management, more than 56 million mu irrigation areas were expanded.26 After the recovery phase of irrigation and water conservancy construction, all parts of the country entered the high-tide period of construction. At that time, the development index of water conservancy was excessively formulated. Due to the level of economic development, however, it was impossible for the country to invest too much capital and material resources in conservation efforts. Therefore, it relied on the active participation of the broad mass of people. Since most of the farmers at that time had participated in rural cooperatives, those cooperatives and various communes took on the main tasks of water conservancy infrastructure construction. Some large-scale and important water conservancy projects were built during this period. After the 1980s, the government largely withdrew from the supply of public goods in rural areas, and the original “collectivization” mechanism of rural public goods began to gradually lose its functionality. At the same time, China also reduced its investments in irrigation and water conservancy construction, which made the third period of the construction begin to stagnate. The construction of water conservancy facilities at this stage was contracted. For each type of project, the district (or township) water conservancy management stations (or technicians) were responsible for contracting in the case of determining the ownership of projects. The contractors were farmers or water conservancy professional households; the main bodies of operation and management were joint households, groups, or consortiums. Moreover, irrigation service centers were established with engineering or village as a unit to unify management. Since the construction in the third stage was grinding to a near standstill, after the 1990s, the supply shortage and inadequate maintenance of water conservancy facilities in various regions gradually emerged. State and local governments at various levels also recognized the seriousness of the problem and successively introduced a series of policies, thereby clarifying that the farmers’ investment in labor was the main channel for the capital construction of irrigation and water conservancy. For example, in 1991, the State Council enacted The Regulations on the 26  Yang, Shuo. Changes of Construction of Irrigation and Water Conservancy in Contemporary China [D], Northwest A&F University, 2008.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

233

Management of Farmers’ Expenses and Labor Services, promoted the collectivization of “accumulated labors”, and legally stipulated the responsibilities and obligations of farmers. In the meantime, it also stipulated certain labor days of each rural labor force for the construction of irrigation and water conservancy every year, thus promoting the renovation and restoration of irrigation and water conservancy. With the gradual completion of rural tax and fee reform, the basic organizational forms, financing methods, input systems, and mechanisms for the construction of irrigation and water conservancy have undergone profound changes. The aim of rural tax and fee reform, which directly relates to the construction of conservancy, is to cancel accumulated labor and compulsory labor stipulated previously. It also changes the methods to collect and use fees paid by farmers for overall townshiplanning and village reserve. Irrigation and water conservancy construction in villages is to take “one discussion for one case” mechanism and the maximum amount of funds raised person/year is to be set. In conclusion, rural tax and fee reform has made major adjustments to the policies of irrigation and water conservancy construction. From the overall and long-term perspective, rural tax and fee reform has promoted the fundamental reform of the construction and led to a qualitative leap in irrigation and water conservancy. At present, under the guidance of the central government’s policy of “industry nurturing agriculture, cities supporting the countryside” and “giving more, taking less, and loosening control”, as well as the concept of transforming agricultural development mode, the central government has greatly increased its investment in “agriculture, rural areas, and farmers”. While increasing financial investment in agricultural production, China also encourages farmers to actively carry out irrigation and water conservancy construction that directly benefits them, as well as promotes effective practices for farmers to participate in irrigation management, and adopts incentives and subsidies to mobilize farmers to build small-scale irrigation and water conservancy projects. In addition, the government has actively guided and encouraged social forces to participate in the construction of irrigation and water conservancy, which has effectively enhanced the ability and level of agricultural production for disaster prevention and mitigation. Since the convening of the 16th National Party Congress in 2008, the national capital construction of water conservancy completed a total investment of ¥ 384.7 billion, and made major breakthroughs in the construction of key water conservancy projects, namely on Huaihe River, thereby exerting great benefits. At the same time, seepage

234 

W. CHEN

prevention and reinforcement for 2381 unsafe reservoirs was completed, and its pace has been significantly accelerated; the newly installed capacity of hydropower in rural areas reached more than 18 million kW, which has solved the electricity consumption of 7 million people without access to electricity and provided follow-up support for more than 22 million reservoir immigrants.27 Due to flood prevention, submerged farmland has been reduced by 16.4 billion mu, flood disaster loss by ¥  421.3 billion, and flood-hit population by 92 million; drought-resisting measures collectively recovered 223 billion kilograms of lost grain and ¥ 193.9 billion of economic crop losses, and provided temporary drinking water for 14.1 billion people and 1.1 billion livestock.28 4.2  Distribution and Risk Analysis of Main Agro-­Meteorological Disasters in China Agricultural disasters not only threaten China’s food production safety, but also easily lead to resource, environmental, and population problems, among which agro-meteorological disasters are paramount. Agro-­ meteorological disasters generally refer to the adverse weather or climatic conditions that occur in agricultural production processes and cause significant reductions in agriculture. These include floods, droughts, frost damage, typhoons, dry-hot winds, hail, and other secondary disasters. China has some of the most serious meteorological disasters in the world. In China, the loss from meteorological disasters accounts for more than 70% of the total loss from natural disasters. Moreover, agriculture is one of the weakest links in the prevention of meteorological disasters.29 According to statistics, since the founding of the People’s Republic of China, there have been 23.2 natural disasters such as major floods, droughts, and wind disasters happening every year. An average of 600 million mu of crops and over 200 million people suffer from disasters every year, while economic losses amount to tens of billions of yuan. Among them, the annual loss of 27  Qu, Yongfang. The Supply of Rural Hydraulic Infrastructure in China [D], Shandong University, 2008. 28  Li, Kun. Implement Fully the Guidelines of the Central Conference on Rural Work and Accelerate the Development and Reform of Rural Water Conservancy [N], China Water Resources News, January 4, 2008. 29  Zhang, Heng & Bao, Wen. Agricultural Meteorological Disasters Insurance and Capacity Building of Disaster Prevention and Mitigation [J], Research of Agricultural Modernization, 2012 (2).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

235

food due to natural disasters accounts for about 5% of the total annual output (the loss far exceeds this number because of major calamities, such as more than 30 billion kilograms in 1998).30 The distribution and hazardous forms of major agro-meteorological disasters in China are ­ shown in Table 5.6. Droughts and floods are the major disasters affecting the normal operation of China’s agricultural production and are also the main precautionary targets for the construction of the “resource and ecologically sound agriculture” system for disaster prevention and mitigation. Affected by global climate change, since the 1980s, China has had less precipitation in the north compared to the south. Especially since the late 1990s, the precipitation in the north and south in China has changed toward the opposite direction, while the precipitation in the northern river basins is decreasing. This situation means the north continues to suffer from droughts and water shortage, with floods occurring frequently in the south. After the 1990s, there were major floods in the Huaihe and Taihu Basin in 1991, in the Yangtze River Basin in 1998, and in the Huaihe River Basin in 2003. Due to the frequent occurrence of meteorological disasters, as well as the low resistance ability and scarce technological preparation, China’s agricultural production has always been in an unstable state, with great changes between years. 4.3  Constructing the Evaluation System of Disaster Prevention and Mitigation with Constructing of Irrigation and Water Conservancy at Its Core China’s system for disaster prevention and mitigation has a specific foundation after many years of development, but there are still deficiencies, such as an insufficient investment in water conservancy construction and aging facilities. Moreover, the capacity for agricultural disaster monitoring and forecasting is not strong, and the coverage of agricultural disaster insurance is not inclusive. It also lacks grass-roots agricultural management and technical talents, as well as innovations in management systems and the mechanism of agricultural disaster prevention and mitigation. Along with the dramatic changes in global climate systems and the increasing areas affected by agricultural disasters in China, as well as the 30   Zou, Kailiang. On Protection of Agricultural Disasters in China [J], Journal of Huanggang Normal University, 2003 (1).

Table 5.6  Distribution areas and hazard forms of major agricultural meteorological disasters in China Name

Major hazard forms

Major occurrence areas and affected crops

Drought

In a long-term period, there is little to no precipitation. Crops cannot absorb enough water, thereby causing growth retardation, wilting, and dry death. Moreover, severe drought makes rivers stop flowing and wells run dry. It is difficult for people and livestock to access drinking water.

Waterlogging

The rain is too concentrated to bring excess surface water. The toxic substances in the soil damage the root system, making the leaves turn red. Then the growth of crops becomes slow, and the production is reduced. During the warm period, the surface of the soil and plants and the near-surface layer fall to a low temperature below 0°C for a short time, causing the water in the plants to form ice crystals. This will lead to cell dehydration and coagulation of the protoplast colloid, causing the death of crops. In winter, under the strong cold wave attack, the temperature drops sharply below 0°C, causing the plant bodies to freeze or lose all physiological activities. This will lead to partial or total death of the aboveground part of the plants. Hail can injure or even kill crops and livestock, and damage greenhouses, plastic sheds, and even houses.

This can occur all over China, with the spring drought in the north particularly severe. In the Yangtze River basin, the area of the southern Yangtze River, and Jianghuai region, there is regular occurrence of droughts. The affected crops are rice, wheat, corn, soybean, cotton, forests, and fruit trees. It occurs in the middle and lower reaches of the Yangtze River and in southern, northern, and northeast China. The affected crops are rice, wheat, rape, corn, soybean, sorghum, and millet. It occurs in northwest, northern, northeast, eastern, mid-southern, and southern China. The affected crops are winter wheat, cotton, corn, rice, sweet potato, sorghum, vegetables, and fruits.

Frost

Freeze injury

Hail damage

It occurs in northwest, northern, eastern, and mid-southern China. The affected crops are winter wheat, rape, vegetables and grapes, citrus, camellia, tea trees, and other economic forests.

It occurs all over the country, but mostly in the Qinghai-Tibet Plateau and the Qilian Mountains, damaging summer and autumn crops, fruit trees, and livestock. Dry-hot wind High temperature, low humidity It occurs in Henan, Hebei, Shandong, accompanied by high wind power will Anhui, Shanxi, Shaanxi, Ningxia and cause crop transpiration and water loss. North Jiangsu, and Hexi Corridor of Then water supply will not be enough Gansu, Turpan Basin of Xinjiang. The for roots, leaves will turn green and dry, affected crop is wheat. glumes will be white, and finally crops will wither. Heat-forced It will influence flowering and It occurs in the middle and lower maturity of pollination, reducing seed setting rate; in reaches of the Yangtze River and rice grain filling time, high temperature will southern China. The affected crops accelerate root senescence and reduce are early and middle rice. grain weight. Liu, Ling, Sha, Yizhuo & Bai, Yueming. Regional Distribution of Main Agrometeorological Disasters and Disaster Mitigation Strategies in China [J], Journal of Natural Disasters, 2003 (2)

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

237

transformation of the agricultural development mode and continuous promotion of “resource and ecologically sound agriculture” construction, it is crucial to accelerate the construction of agricultural water conservancy facilities and the system for disaster prevention and mitigation, specifically with flood mitigation and drought prevention at its core. In addition, it is necessary to formulate a scientific and rational technical plan for disaster prevention and mitigation, thereby providing a scientific decision-making basis for effective disaster prevention, preparation, post-disaster production, and self-rescue. 4.3.1

 asic Principles for Constructing the Evaluation System B of Disaster Prevention and Mitigation The level of agricultural disaster prevention and mitigation is an important factor in measuring a country’s capacity for agricultural sustainable development. The index system of agricultural disaster prevention and mitigation should be able to scientifically measure the regional disaster-resistance level, which requires the design of the index system to be scientific and reasonable. Therefore, the construction of the index system should follow the guidelines below: (i) Scientific principle. The basic requirement for the evaluation index system of agricultural disaster prevention and mitigation is that it must be scientific. As an accumulation base of economy, population, and culture, rural areas, which are widely affected by natural factors, are of particular importance in disaster prevention. The cost of any wrong decision will lead to heavy losses. Based on this, the setting of evaluation indicators should be highly scientific. (ii) Feasibility principle. The purpose of constructing an evaluation index system of agricultural disaster prevention and mitigation is to conduct a concrete evaluation of the emergency response capability regarding agricultural disasters, which can clearly achieve the purpose of agricultural disaster prevention and mitigation. Therefore, the design of the index system should achieve the expected goals and have a strong operational value. (iii) Hierarchy principle. According to specific conditions of selected indicators, different levels are divided to reflect the complexity of the evaluation index system in a true and accurate way. (iv) Flexibility principle. Due to regional differences in agricultural production methods and resource endowments, indicators that can participate in the evaluation of agricultural disaster prevention

238 

W. CHEN

and mitigation will also have regional differences. Therefore, it is required that in the selection of evaluation indicators and construction of the evaluation index systems, regional differences, adaption to local conditions, and flexible design need to be fully considered. Especially for different types of disasters, different evaluation indicators should be selected according to different influences, or corresponding weights should be allocated. The differences of key evaluation indicators will affect the final evaluation results. (v) Dynamic principle. Since the development of agriculture is a dynamic process, emergency response capability for agricultural disasters will change with the development of agriculture on a similar time scale, which requires a dynamic perspective on the evaluation of levels and management capabilities of agricultural disaster prevention and mitigation. 4.3.2

 ain Content for Constructing the Evaluation System M of Disaster Prevention and Mitigation The national “12th Five-Year” development plan made comprehensive arrangements for strengthening the construction of farmland water conservancy and a disaster prevention and mitigation system. It proposes to comprehensively strengthen the infrastructure construction of irrigation and water conservancy, and improve the maintenance systems and mechanism for facility construction and management. It also proposes to accelerate the revamping of large and medium-sized irrigation districts and irrigation and drainage pumping stations, and construct new irrigated areas with abundant water and soil resources. Furthermore, it advocates for the quality construction of drought-resistant water sources, promotion of the construction of small-scale irrigation and water conservancy in key counties, and improvement of small and micro-scale rural water conservancy facilities. In addition, it encourages the country to strengthen field construction based on irrigation and water conservancy facilities, transform medium-low-yield fields, and carry out large-scale construction of high-standard farmlands with stable yields.31

31  The 12th Five-Year Plan on National Economic and Social Development [N], People’s Daily, March 17, 2011.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

239

(i) Engineering construction with farmland water conservancy as well as disaster prevention and mitigation at its core. It is necessary to increase laws and regulations on the preservation of China’s great rivers and lakes, as well as important tributaries, lakes, and small and medium-sized rivers, thereby enhancing the ability of agriculture to withstand natural disasters, and the capacity for water supply. China should improve the national allocation system of water resources, in order to accelerate the construction of inter-basin water transfer and major water source projects, and promote the construction of medium, small, and micro-scale water source projects, thus improving the capacity of the water supply and reserves. Moreover, it also should promote the solution of regional engineering and resource water shortage, effectively utilize rain-flood resources and cloud-water resources, and realize the transformation and upgrading of hydrology and water resource management infrastructure and major water conservancy project dispatching management systems to enhance the capacity for flood control and disaster prevention. Meanwhile, to enhance the project’s capacities for flood control and drought resistance, it is necessary to continue the development of flood storage and detention areas near large rivers and lakes; strengthen embankment construction, dredging, and remediation of small and medium-sized rivers, lakes, and reservoirs; accelerate the investigation and elimination of hidden dangers within reservoirs; strengthen the standard ­construction of coastal seawalls; and develop the comprehensive management of important estuaries. (ii) The management of small-scale water conservancy in mountain ponds and creeks. China should strengthen the dredging and reinforcement of small-scale water conservancy facilities such as mountain ponds and creeks to improve its capacity for water storage and drainage, comprehensively register small-scale water conservancy facilities, formulate plans for governance and construction, increase financial input at all levels, integrate all aspects of resources, and focus on investment and implement it in a separate manner with the aim of improving the disaster prevention and resilience capacity of small-scale water conservancy. Meanwhile, the construction of irrigation networks will focus on improving the overall agricultural production capacity to enhance the irrigation function of mountain ponds and creeks. All kinds of rainwater storage projects

240 

W. CHEN

such as small reservoirs, ditches, and embankments in the basin will be connected together to carry out joint dispatching to form a flood control irrigation network, thereby realizing the rational development, optimal allocation, and effective utilization of irrigation and water conservancy. Moreover, there should also be vigorous promotion of water-saving irrigation, and generalization of new technologies such as ways to channel anti-seepage, sprinkler irrigation, and drip irrigation, in order to strengthen water conservation. It is necessary to innovate the management mechanism for mountain ponds and creeks, strengthen the management responsibilities of county, township, and village governments, establish a contract responsibility system, and achieve orderly management of mountain ponds and creeks. (iii) The construction of a geological and climate monitoring and forecasting information network targeting disaster prevention. Government departments should attach great importance to the general survey of geological and meteorological disasters, comprehensively investigate the types, distribution, frequency, intensity, and loss during meteorological and geological disasters in the region, and build a regional risk database to catalogue such disasters. It should also strengthen group monitoring and prevention of hidden danger points, carry out professional monitoring for hidden danger points of potential instability and dangerous and serious geological disasters, and strictly control various c­ onstruction project areas with potential geological disasters. Moreover, it is necessary to strengthen the cooperation between meteorological departments and geological units, establish an information-­sharing platform, and scientifically and quickly analyze and evaluate meteorological and secondary disasters, thereby improving targeted disaster prevention and mitigation measures. In order to sufficiently tackle situations in different regions, The Emergency Plan for Sudden Meteorological Disasters and The Emergency Plan for Sudden Geological Disasters are to be improved, and the coordination and integration of the two plans are to be strengthened to rapidly improve efficiency, warning, and forecasting capabilities. Meanwhile, it is necessary to organize multi-sectoral joint emergency plan drills for meteorological and geological disasters, thus promoting the coordination of various units and implementing clear duties for every position within those units.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

241

(iv) The construction of water conservancy service systems with technical talents as the key. China will strengthen the construction of water conservancy service systems according to local conditions. This includes first improving the organization. Posts will be reasonably set up based on requirements to hire personnel accordingly; determine the proportion of professional technical personnel; implement personnel allocations, as well as fixed position, fixed orientation, fixed duty, and pay based on post; carry out position competition; and improve the talent evaluation mechanism, flow mechanism, and incentive mechanism. Second, the government will formulate and implement preferential policies and innovative mechanisms for college graduates to work in grass-roots water conservancy service institutions. According to the principles of openness, fairness, and impartiality, governmental departments will recruit and select professional and technical personnel and management talents to enter grass-roots water conservancy institutions, thereby effectively enhancing surveying and design capability of water conservancy, construction management capability, and ability of administration by law. Third, it is prudent to adapt to the new requirements of water conservancy reform and development, implementing a talent training program, conducting regular comprehensive and professional training for grass-roots water conservancy cadres and workers, encouraging workers to continue professionalization and enhancing service capabilities through continuing education and business technology training, and paying attention to structural optimization for grass-roots water conservancy institutions and talents. (v) The optimization of the water conservancy investment structure oriented by citizen livelihood projects. Based on the relevant policies of the central government to support the construction of agricultural water conservancy facilities, the central and local governments will establish a financial and material support mechanism for small and medium-sized agricultural water conservancy projects and farmland water conservancy construction. Local finance should highlight the orientation of “people’s livelihood and water conservancy” to increase the investment in supporting water conservancy funds for agriculture and establish a water conservancy investment mechanism that closely cooperates with the central government. To improve the ability to withstand agricultural natural

242 

W. CHEN

disasters and provide support for farmers to increase production and income, China should support rural water conservancy construction as an important part of safeguarding and improving citizen livelihood, strengthening the protection of farmland irrigation, mountain flood disaster prevention, safe rural drinking water, and other livelihood projects. While deepening the reform of water conservancy investment, government financial input should be mainly used for the construction of public welfare water conservancy facilities. The construction of quasi-public welfare water conservancy facilities should be guided by the government’s input to mobilize the enthusiasm of social forces, especially to encourage enterprises and individuals to invest in farmland water conservancy facilities. (vi) The development plan for water resources based on the promotion of farmers’ interests. In view of the overall situation, the Chinese government should set priorities; give overall consideration; scientifically formulate and implement water supply and demand planning; provide quality water storage, diversion, and transfer of rivers, lakes, and reservoirs; correctly deal with differences in the natural environment and contradictions between flood control and drought resistance between the upper, middle, and lower regions, and water contradiction in different regions; manage the use of water resources; and promote the construction of a ­water-­saving society. In the meantime, China should also strengthen the construction of farmland irrigation facilities, expand effective irrigation areas of farmland, enhance the ability to withstand natural disasters, especially floods and droughts, accelerate the process of rural water conservancy and hydropower construction, promote the transformation of rural hydropower systems, and comprehensively develop and utilize a variety of functions of rural water resources such as irrigation, drought relief, breeding, power generation, and tourism, thereby achieving multiple uses of water. Moreover, it is necessary to promote high-efficiency and water-­ saving agricultural irrigation technologies and facilities according to local conditions, encourage the development of water-saving irrigation agriculture, strictly limit a water-deficient area’s ability to plant high-water-consuming crops and start high-water-­consuming projects, implement the “three simultaneous” system of water-saving facilities and the main part of projects, eliminate the water process, equipment, and products that do not meet water-­saving standards, and promote the application of water-saving products and appliances.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

243

4.3.3

 he Index System for the Construction of Disaster Prevention T and Mitigation Evaluation Systems The construction of disaster prevention and mitigation capacity for agricultural disasters should focus on reducing the vulnerability of disaster bodies and improving their recovery capability. This system should prevent problems before they occur and put the construction of disaster prevention capacity in a more prominent position. For floods and droughts, which are major agricultural natural disasters in China, it is necessary to focus on constructing a disaster prevention and mitigation system with farmland water conservancy projects at its core. Meanwhile, this system is assisted by various means such as administration and technologies, while coordinating with several measures such as disaster monitoring, early warning and forecasting, risk assessment, defense, and rescue, thereby minimizing losses. Based on this, we will focus on the factors affecting the regional agricultural disaster prevention and mitigation level. According to the main influence areas, this follows construction principles of the index system, refers to the relevant research literature at the current stage, and summarizes the indicators selected by many researchers to form a general evaluation index system of agricultural disaster prevention and mitigation. The indicator screening table consists of four levels: target layer, criterion layer 1, criterion layer 2, and indicator layer. (i) Target layer: A comprehensive evaluation index of regional agricultural disaster prevention and mitigation levels can be derived. (ii) Criterion layer 1: Consisting of four sub-modules, which are monitoring and forecasting capabilities, engineering defense capabilities, social and economic support capabilities, and disaster management capabilities. (iii) Criterion layer 2: Consisting of nine sub-modules, namely agricultural disaster monitoring, agricultural disaster warning and ­forecasting, engineering defense, human resources support, social and economic support, systems, mechanism and legality, disaster relief, social mobilization, and scientific and technological support. (iv) Indicator layer: According to the implication of agricultural disaster prevention and mitigation and the setting principles of evaluation index system, 21 specific indicators are collected and aggregated, and disaster engineering defense should be given greater weight (see Table 5.7 for details).

Criterion layer 1

Engineering defense capabilities

Disaster prevention Monitoring and and mitigation forecasting capabilities with capabilities constructing farmland water conservancy at its core

Target layer

Engineering defense

Agricultural disaster warning and forecasting

Agricultural disaster monitoring

Criterion layer 2

One per 10,000 square kilometers One per 10,000 square kilometers One per 10,000 square kilometers %

The density of hydrological monitoring stations The density of geological disaster monitoring stations The density of crop pest monitoring stations The penetration rate of radios, televisions, and telephones The penetration rate of the Internet The disaster prevention performance of the power supply system The disaster prevention performance of the communication system The length proportion of disaster prevention dam The reservoir storage per unit area The proportion of effective irrigated areas 100 million cubic meters %

%

%

%

%

One per 10,000 square kilometers

Unit

The density of meteorological stations

Indicator layer

The number of hydrological stations per 10,000 square kilometers The number of geological disaster monitoring stations per 10,000 square kilometers The number of crop pest monitoring stations per 10,000 square kilometers The proportion of households with radios, televisions, and telephones (mobile phones) in the region to the total households The proportion of households with Internet access in the region to the total households The proportion of the length of the power supply line that reaches the fortification level to the total length of the power supply line The proportion of the length of the line reaching the fortification level to the total length of the communication line The ratio of the dam reaching the fortification level to the total length of rivers The total storage of various reservoirs per unit area The ratio of total effective irrigation areas in the region to the total areas of farmland

The number of meteorological stations per 10,000 square kilometers

Index explanation

Table 5.7  Evaluation index system for disaster prevention and mitigation capacity with constructing irrigation and water conservancy at its core

Disaster management capabilities

Social and economic support capabilities

%

%

The proportion of scientific research personnel The proportion of research funding

Scientific and technological support Scientific and technological support

0–1

0–1

0–1

¥10,000 /per person ¥10,000/per person %

The maturity level of disaster mobilization mechanism

The coverage rate of agricultural insurance The degree of agricultural disaster prevention and mitigation system, mechanism, and legal system The efficiency and level of disaster relief funds, emergency materials, disaster mitigation technologies, and information

Per capita savings

Per capita GDP

%

%

Social mobilization

Disaster relief

Systems, mechanism and legality

Social and economic support

Human resources support

The proportion of geological disaster prevention and control areas The proportion of agricultural population

(continued)

The ratio of geological disaster prevention areas in the region to the areas that need to be treated The ratio of the population that over 18 years of age who have the ability to participate in agricultural production activities to the total population The proportion of regional GDP to the total population of the region The proportion of total regional savings to the total population in the region The proportion of farmland with agricultural insurance to the total areas The degree to which the government incorporates agricultural disaster prevention and mitigation into the standardized and legalized framework The proportion of rescue funds, emergency materials, technologies, and information in the implementation of disaster prevention and mitigation under specific time and certain technical conditions to achievements of disaster prevention and mitigation The degree to which the government incorporates effective social mobilization of agricultural disaster prevention and mitigation into the standardized and legalized framework The ratio of the number of people engaged in agro-science research to the total population in the region The ratio of funds spent on agro-science research to GDP

Per capita GDP (¥10,000 per person) refers to the proportion of regional GDP to the total population of the region, which is an indicator for measuring financial support capacity.

The proportion (%) of agricultural population refers to the ratio of the population that is over 18 years of age and has the ability to participate in agricultural production activities to the total population, which is an indicator to measure the level of urban-rural dual structure.

The proportion (%) of geological disaster prevention and control areas refers to the ratio of geological disaster prevention areas in the region to the areas that need to be treated, which is an indicator to measure the capacity for disaster prevention and mitigation.

The proportion (%) of effective irrigated areas in the region refers to the ratio of total effective irrigation area in the region to the total areas of farmland, which is an indicator to measure the capacity for flood prevention and waterlogging control.

The reservoir storage per unit area (100 million cubic meters) refers to the total storage of various reservoirs per unit area, which is an indicator to measure the flood control capacity of the reservoir.

The length proportion (%) of dam disaster prevention refers to the ratio of the dam reaching the fortification level to the total length of rivers, which is an indicator to measure the flood control capacity of the dam.

The disaster prevention performance (%) of the communication system refers to the proportion of the length of the line reaching the fortification level to the total length of the communication line, which is an indicator for measuring the capacity for engineering disaster prevention and mitigation.

The disaster prevention performance (%) of the power supply system refers to the proportion of the length of the power supply line that reaches the fortification level to the total length of the power supply line, which is an indicator for measuring the ability of engineering disaster prevention and mitigation.

The penetration rate (%) of the Internet refers to the proportion of households with Internet access in the region to the total households, which is an indicator for measuring the applied technology level of disaster prevention and mitigation information.

The penetration rate (%) of radios, televisions, and telephones refers to the proportion of households with radios, televisions, and telephones (which can also refer to mobile phones) in the region to the total number of households, which is an indicator for measuring the applied technology level of disaster prevention and mitigation information.

The density of crop pest monitoring stations (one per 10,000 square kilometers) refers to the number of crop pest monitoring stations per 10,000 square kilometers, which is an indicator for measuring the construction level of the crop pest monitoring network.

The density of geological disaster monitoring stations (one per 10,000 square kilometers) refers to the number of geological disaster monitoring stations per 10,000 square kilometers, which is an indicator for measuring the construction level of the geological disaster monitoring network.

The density of hydrological monitoring stations (one per 10,000 square kilometers) refers to the number of hydrological stations per 10,000 square kilometers, which is an indicator for measuring the construction level of the hydrological monitoring service network.

The density of meteorological stations (one per 10,000 square kilometers) refers to the number of meteorological stations per 10,000 square kilometers, which is an indicator for measuring the construction level of the meteorological service network.

Table 5.7  (continued)

The proportion (%) of research funding refers to the ratio of funds spent on agro-science research to GDP, which is an indicator for measuring scientific research capacity of disaster prevention and mitigation.

The proportion (%) of scientific research personnel refers to the ratio of the number of people engaged in agro-science research to the total population in the region, which is an indicator for measuring scientific research capacity of disaster prevention and mitigation.

The maturity level (0–1) of the disaster mobilization mechanism refers to the degree to which the government incorporates effective social mobilization of agricultural disaster prevention and mitigation into the standardized and legal framework. It is an indicator to measure the construction level of the social mobilization system for disaster prevention and mitigation. This value is obtained by questionnaire.

The efficiency and level (0–1) of disaster relief funds, emergency materials, disaster mitigation technologies, and information refer to the proportion of rescue funds, emergency materials, technologies, and information in the implementation of disaster prevention and mitigation under specific time restraints and certain technical conditions to achievements of disaster prevention and mitigation. It is an indicator for measuring the input and output effects of disaster prevention and mitigation. The value of this is obtained through a questionnaire.

The degree (0–1) of the agricultural disaster prevention and mitigation system, mechanism, and legal system refers to the degree to which the government incorporates agricultural disaster prevention and mitigation into the standardized and legalized framework, which is an indicator for measuring the construction level of the agricultural disaster prevention and mitigation system. The value of this is obtained through a questionnaire.

The coverage rate (%) of agricultural insurance refers to the proportion of farmland with agricultural insurance to total areas, which is an indicator to measure the agricultural development and security level.

Per capita savings (¥10,000 per person) refers to the proportion of total regional savings to the total population in the region, which is an indicator for measuring financial support capacity.

248 

W. CHEN

4.3.4

 valuation Methods of Disaster Prevention and Mitigation E Evaluation Systems In the evaluation process, it is necessary to combine the standards set by the State with the actual level of the region, adopting the method of qualitative and quantitative analysis, with the former as the main method. The evaluation of disaster prevention and mitigation with farmland water conservancy construction at its core involves many indicators. Considering the availability, reliability, and completeness of statistical data, Analytic Hierarchy Process (AHP) is used for overall evaluation. In addition, the expert scoring method and the questionnaire survey method are adopted in the evaluation process to ensure consistent scientific evaluation results. In the specific operating process, weight distribution between indicators at each level is based on the AHP and expert scoring method. The quantitative values of some specific indicators can be obtained through questionnaires, and evaluation results should be fair, objective, and accurate. 4.4  Constructing the System of Disaster Prevention and Mitigation with the Construction of Irrigation and Water Conservancy at Its Core As a country with some of the most serious agricultural natural disasters in the world, it is urgent for China to establish an effective agricultural disaster prevention and mitigation system to strengthen effective prevention and control of agricultural disasters and avoid and reduce their harm to agricultural production and the lives of farmers. Farmland water conservancy infrastructure plays an irreplaceable role in agricultural disaster prevention and mitigation. As farmland water conservancy facilities are relatively lagging behind, China should take the construction of irrigation and water conservancy facilities as the core, and improve disaster prevention and mitigation systems such as monitoring and early warning, response training on disaster prevention, and disaster recovery. 4.4.1

 he Investment Mechanism for Disaster Prevention T and Mitigation to Be Optimized As China’s comprehensive national strength continues to increase and social civilization continues to advance, once disaster relief occurs, it will become a highly important task for the Chinese government. However, the rationale of “regardless the cost and consequence” ignores performance, thereby failing to maximize the effectiveness of disaster prevention

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

249

and mitigation resources that are inherently limited. The investment in disaster prevention and mitigation should be limited. Therefore, to maximize the effect with limited input, it is necessary to optimize the investment mechanism for disaster prevention and mitigation. First, a sharing mechanism with clear responsibilities should be established. Currently, there is no clearly defined responsibilities for the investment in large and small disasters. Shangxi Liu, an official of the Ministry of Finance, believes that in the absence of an institutional framework for risk sharing, the financial emergency response capacity will be greatly reduced. Because under the condition that its responsibility is not clear, once the public is faced with a crisis, the exact financial responsibility of the government will be blurred and the action will be slow to follow.32 There will be overreliance on the central government, as some people say a “big rice bowl of risk”, which can directly lead some local governments to pay no attention to disaster prevention before it occurs, and fail to address it efficiently after the event. Moreover, some local governments could even exaggerate the impact of such disasters in order to maximize the financial input of the central government and the financial department at a higher level. Therefore, it is necessary to clarify the responsibility for disaster prevention and mitigation between all levels of government and between various government departments to prevent the moral and credibility crisis caused by shirking responsibilities. Second, a strict disaster statistics mechanism should be established. Disaster statistics include technical methods and mechanism design. In the information age, information technology provides support for all aspects of the technical methods and paths of disaster statistics. However, the modern transformation of governance capacity, patterns, and systems lag behind, making the system and mechanism design of disaster statistics increasingly difficult. In reality, human error and accidents are often underreported or covered up, while reports of natural disasters are often exaggerated with overstated losses. Unless strict disaster investigation, reporting, and evaluation mechanisms are established, it will be hard for disaster statistics to be objective or accurate. Meanwhile, the performance expectations of disaster prevention and mitigation inputs may not be realized.

32  Liu, Shangxi & Chen, Shaoqiang. An Emergency Response Mechanism for Public Finance to Be Built [J], Public Finance Research, 2003 (8).

250 

W. CHEN

Third, an investment system which gives priority to disaster prevention is to be established. Simply put, preparedness ensures success while unpreparedness spells failure. Optimizing the allocation of inputs and establishing a long-term mechanism for disaster prevention and mitigation objectively requires disaster prevention first. Former UN Secretary-­ General Kofi Annan once stated that pre-disaster prevention is not only more humane but also more economical than post-disaster relief. Therefore, priority should be given to disaster prevention. For example, investing in disaster prevention projects such as water conservancy projects, wind sheltering, and sand fixation projects with important functions of disaster prevention and mitigation will help to reduce disasters or the losses from such events. It also promotes precautionary, initiative, and sustainable measures against disasters. In conclusion, putting disaster prevention first is a fundamental solution for China, which has already invested a considerable amount in disaster relief and reconstruction. Fourth, an investment system which highlights key points is to be established. It is necessary to optimize the allocation of various disaster prevention and mitigation inputs in order to pay closer attention to potential disasters that pose a major threat to people’s lives, property security, and socio-economic development. This would include major disasters such as floods, droughts, and earthquakes which often threaten industrial and agricultural production, key areas with frequent natural disasters and multiple natural disaster risks, as well as underdeveloped areas and rural areas in central and western regions with weak anti-disaster capacity. China should prevent increased loss through the inputs before and after the disaster and restore normal production and living order as soon as possible. The strategy is complementary to the fundamental solution, so as to address both the symptoms and root cause. Fifth, an investment mechanism with positive guidance should be established. If the investment mechanism becomes unreasonable, it will have a negative guiding effect. This means that the higher the investment, the greater the negative effect will be; areas which fail to pay attention to disaster prevention and suffer serious losses will obtain more financial inputs. Conversely, in areas where disaster prevention is done very well, financial investment cannot be obtained due to existing disaster prevention. Financial investment has been excessive in post-disaster areas, thereby making the standards for reconstruction in disaster-stricken areas too high and even causing some areas to expect disasters. Therefore, it is necessary to rationally adjust the interests of each entity, incorporate the investment of disaster prevention and mitigation into the performance appraisal

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

251

system of governments at all levels, and have financial investment exert a positive influence on governments through a reward and punishment mechanism. Meanwhile, fiscal and tax preferential policies, direct subsidies, and the establishment of related interest mechanisms will be given full play to positively guide the role of financial input in market and private investment.33 4.4.2 A Clear System of Power and Responsibility to Be Established Efforts should be made to integrate various resources and build a government-­led pattern of national disaster relief. In the overall planning of national economic and social development, disaster resistance and prevention is generally included; the chief responsibility for disaster resistance and relief system should be to strengthen the leadership and departmental responsibilities; training and education should be strengthened to improve the awareness and the ability of farmers to fight against disasters, thereby giving full play to the main role of the people; the enthusiasm of all departments to participate in disaster prevention and mitigation should be mobilized, thus forming a joint effort of the government; and it is necessary to give full play to the unique role of social organizations, so as to guide such organizations to actively participate in disaster prevention and mitigation. 4.4.3

 he Material Reserve System for Disaster Prevention T and Mitigation to Be Improved In view of the fact that the material reserve for disaster relief at the national level has narrow coverage and tardy responses, it is necessary to explore the establishment of a two-tier disaster relief material reserve system with the “central-provincial” model. Moreover, each province should establish corresponding daily material reserve systems for disaster prevention and mitigation with its own fiscal revenue,34 thereby providing channels for the use of reserve materials in provinces, cities, counties, and villages. Meanwhile, China should improve the seed risk reserve system, strengthen the construction of emergency material storage and transportation infrastructure such as composite feed, and promote corresponding production technologies and disaster prevention and mitigation measures.35 33  Hua, Ying. The Optimal Mechanism for Chinese Government’s Investment in Disaster Prevention and Mitigation [J], Gansu Social Sciences, 2011 (6). 34  Zou, Fan & Lu, Ruizheng. Research on Improvement of Agricultural Disaster Prevention and Mitigation System in China [J], Agricultural Economics and Management, 2011 (01). 35  Lan, Dahuang. Disaster Prevention and Mitigation Capability in Agriculture to Be Improved [N], Guangxi Daily, June 17, 2010.

252 

W. CHEN

4.4.4

 he Working Mechanism for Disaster Prevention T and Mitigation to Be Improved China should establish a modern meteorological monitoring network and improve current meteorological department forecasting and early warning mechanisms, including establishing full coverage of meteorological disasters, grassland fire monitoring, and forecasting and information release systems. It should also clarify the corresponding responsibilities of governments at all levels for weather and climate monitoring, improve forecasting and disaster emergency response capabilities, and create initiatives to deal with climate changes. Meanwhile, it is necessary to promote the informatization of agricultural disasters, and establish an information system that efficiently collects, organizes, and reflects disasters, thereby providing scientific basis and reliable guarantee for disaster prevention, resistance, and mitigation. Moreover, it is pressing for the Chinese government to improve the emergency response mechanism at all levels of government for disaster prevention and mitigation, and to comprehensively coordinate the emergency response plans of counties (or districts), townships, and villages so as to strengthen emergency response capabilities for disaster prevention and resistance.

5   Constructing the System of Biological Species Resources Protection with Protecting of Biological Germplasm Resources at Its Core Based on the status quo of China’s biological species resources, the comprehensive evaluation of the problems in the protection and utilization of biological species resources will help China to construct the system of biological species resource protection with protecting of biological germplasm resources at its core. 5.1  Biological Species Resource Evaluation in China 5.1.1 Biological Species Resources Rank among the Top in the World China has a vast territory and diverse topography and landforms. Some areas of China have not been affected by the Quaternary Glaciers, which has left China with a large number of biological species.36 According to relevant literature, there are about 2748 species of terrestrial vertebrates in 36  Li, Fei. Biological Species Resource Evaluation and Its Sustainable Utilization in China [J], ZIRANZIYUAN, 1996 (4).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

253

China, which include about 607 species of mammals, 1294 species of birds, 412 species of reptiles, and 435 species of amphibians, accounting for 12.6%, 13.3%, 6.5%, and 10.8% of mammals, birds, reptiles, and amphibians respectively in the world. There are more than 20,000 species of aquatic organisms, including more than 3800 species of fish, more than 300 species of amphibians, more than 40 kinds of aquatic mammals, and more than 600 kinds of aquatic plants. Among them, over 200 species of aquatic organisms have an important value for utilization. Moreover, China’s agriculture has a long history of cultivating various plants. According to statistics, albeit incomplete, there are thousands of kinds of crops and their wild relatives, including about 1200 kinds of cultivated plants and more than 600 kinds of main cultivated plants. Among them, about 300 species are indigenous to China. Therefore, the number of crop germplasm resources ranks high globally.37 5.1.2

 eterioration of the Eco-Environment in Which Biological D Species Resources Are Located Changes in biological species resources are inextricably linked to the socio-­ economic development process. The use of biological species resources by humans supplies a large number of material products and meets the needs of human survival. However, the excessive utilization of natural resources and the eco-environment leads to extreme environmental damage. China’s industrialization and urbanization has exacerbated the impact of industry, agriculture, and domestic sewage on the natural environment, further destroying precious ecosystems.38 Taking water environment as an example, according to the monitoring data in 2011, major rivers are polluted to varying degrees. Among 469 state-controlled sections monitored in ten river systems, which include the Yangtze River, the Yellow River, the Pearl River, the Songhua River, the Huaihe River, the Haihe River, the Liaohe River, the Zhejiang-Fujian River, the Southwest Rivers, and other inland rivers, the proportions of water quality sections of Grade I to III, Grade IV to V, and worse than Grade V are 61.0%, 25.3%, and 13.7% respectively. Among the 26 state-controlled key lakes (or reservoirs), the proportions of lakes (reservoirs) of Grade I to III, Grade IV to V, and worse than Grade V are 42.3%, 50.0%, and 7.7% respectively. This means that lake (reservoir) eutrophication is an outstanding problem. Moreover, 18 37  State Environmental Protection Administration. The Guidelines for the Plan on the Protection and Utilization of National Resources of Biological Species (No. 163, 2007). 38  Lv, Xianguo. The Protection and Administration of Wetland Ecosystem [M], Beijing: Chemical Industry Press, 2004: 184.

254 

W. CHEN

indicators such as water quality, sediments, and biology are monitored in 120 important fishing waters and 43 national aquatic germplasm resource conservation areas in the Bohai Sea, the Yellow Sea, the East China Sea, the South China Sea, the Heilongjiang River Basin, the Yellow River Basin, the Yangtze River Basin, the Pearl River Basin, and other key areas. The total monitoring area is 19.207 million hectares and its monitoring data indicates that the pollution of local fishing waters in China is still very serious.39 While China’s biological species resources are bringing economic, social, and ecological benefits, they are facing enormous threats from humans. Human survival expansion and development expansion are intertwined, putting increasing pressure on the important strategic resources of biological species resources. 5.1.3 Imperfect Protection System for Biological Species Resources Due to the destruction of biological habitats, predatory development and utilization, and environmental pollution, the living conditions of China’s biological species are deteriorating. There are more than 300 species of terrestrial vertebrates and about 500 species of aquatic wildlife currently endangered throughout China. The coastal waters and inland waters are the main spawning grounds and fattening farms for most aquatic organisms. However, due to pollution, the water function is degraded, resulting in a decrease in the parental fertility and the larval viability of aquatic organisms. Aquatic products have also fallen sharply; for example, the aquatic production in the Bohai Sea is less than one-fourth what it was in the 1980s. For a long time, the germplasm resources of Chinese crops have also been lost or severely damaged. One of the major reasons for this is that since the adoption of new varieties and technologies, a large number of older plant varieties, especially household varieties which farmers hand down from generation to generation, have been eliminated. Another reason is that environmental transition such as changes in land use, large-­ scale construction, and urban expansion, has led to the survival crisis of wild relatives of many important crops. For example, the habitat areas and populations of common wild rice, oryza officinalis, and oryza granulate are shrinking and disappearing.40 39   Ministry of Environmental Protection of People’s Republic of China. China Environmental Status Bulletin2011 [J], China Environmental Status Bulletin, 2012 (6). 40  State Environmental Protection Administration. The Guidelines for the Plan on the Protection and Utilization of National Resources of Biological Species (No. 163, 2007).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

255

5.1.4 Low Levels of Sustainable Use of Biological Species Resources In general, the research on biological species resources in China is not thorough enough, the utilization level is low, as is yield, and the processing capacity is limited. Taking livestock and poultry germplasm resources as well as crop seed resources as an example, due to the complexity of China’s agricultural system, the collecting work of variety resources is extensive. Moreover, the livestock and poultry germplasm resources in some areas have not yet been thoroughly investigated. Therefore, some variety resources have failed to be catalogued and lack effective protection. The census of crop germplasm resources is small in variety and scope. In particular, there is a lack of systematic census of wild relatives to plant resources. The information and data on species and populations are incomplete, and some categories are still blank. Even for the species that have been investigated, due to the failure to monitor, the quantity, distribution areas, threat levels, and causes are not known. The total amount of the collected crop germplasm resources is less than 400,000, and thus the collection of most germplasm resources, especially wild relatives to plant resources of crops, has become an urgent task.41 The shallowness in the research of biological species resources restricts the development and utilization of biological species resources, so that the problems of destructive development and utilization of biological species resources as well as insufficient development of high-quality resources coexist. 5.2  The Composition of the System of Biological Species Resources Protection with Protecting of Biological Germplasm Resources at Its Core The biological species resources protection system with protecting of germplasm resources at its core consists of five aspects: the breeding and technology promotion system, variety testing and evaluation system, seed quality assurance system, endangered species management system, and the biological species resources information service system (see Fig.  5.5 for details).  Ibid.

41

256 

W. CHEN

The breeding system Breeding and technology promotion system

The system of biological species resources protection with protecting of biological germplasm resources at its core

Technology promotion system

Variety testing and evaluation system

Seed quality assurance system

Endangered species management system Biological species resources information service system

The protection list system of endangered species The assessment system of endangered species

Fig. 5.5  The system structure of biological species resources protection with protecting biological germplasm resources at its core

5.2.1 Breeding and Technology Extension System The breeding system is a systematic project, which includes four subsystems: breeding, production, processing and packaging, and sales promotion. On the basis of the existing breeding project, China should initiate the crop breeding project, establish and improve the system of cultivating seed operational entities as the main body, and carry out uniform breeding and supply of crop varieties. It should also initiate the breeding project of livestock and poultry, and establish and improve breeding organizational structures of “seed stock station, breeding expansion field, and commodity field”, and standardized supply system. Meanwhile, it is necessary to improve the aquatic products breeding project; strengthen the search, sorting, preservation, and identification of germplasm resources; establish and improve the center for conservation and utilization of aquatic germplasm resources, genetic breeding, seed introduction, and breed

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

257

conservation; and establish aquatic breeding systems such as seed breeding farms. It is necessary to form a four-system coordination and linkage mechanism for various types of improved varieties projects, and to accelerate the formation of an improved variety system with reasonable layout, and the structural optimization and efficient operation: germplasm resources conservation is efficient, the supply capacity of improved varieties is significantly improved, and the commercialization of improved varieties is rapidly advancing. To improve the technology promotion system for improved varieties, China should focus on four tasks. The first is the reform of the grass-roots agro-technology extension system. In accordance with the relevant documents and policies of the central and provincial governments, China should solidly promote the reform of the grass-roots agro-technology extension system. The second task is the construction of conditions and facilities for grass-roots agro-technology extension institutions. China should accelerate the construction and improvement of county-level agro-­ technology extension centers, township, or regional agro-technology extension institutions, so that these centers and institutions can have clear functions, standardized operating mechanisms, excellent extension teams, stable funding guarantees, and necessary working conditions; it should also construct pilot projects of village-level service stations. These stations will not only become a link connecting the majority of farmers, but also the extension, publicity, and service points for new varieties, technologies, and products of agriculture. Meanwhile, it is time to construct a regional agricultural test demonstration base, and build it into the test base for new varieties and technologies, the learning base for agro-technology personnel and farmers, the agricultural information collection base, as well as the employment and entrepreneurship base for university graduates. The third task is to improve the quality of the grass-roots breeding technology extension team. It is necessary to establish an institutionalized training and education mechanism for grass-roots breeding technology extension personnel, set up special subsidies for knowledge update training, and provide continued training for breeding technology extension personnel, thereby comprehensively improving the service quality of the grassroots breeding technology extension team. The fourth task is to support special posts for grassroots breeding technology extension institutions. In accordance with the 2010 斜体: No. 1 Central Document Special Post Plan in Grassroots Agro-technology Extension Institutions: College Graduates of Agriculture-Related Majors Are Encouraged to Work In Grassroots

258 

W. CHEN

Agro-­technology Promotion Institutions, China is to implement the support plan for agricultural talents, encouraging college students to work in the grass-­ roots agro-technology extension institutions, carrying out the breeding technology extension program for improved varieties, setting up a demonstration base for breeding test techniques, and promoting the extension services of breeding techniques. 5.2.2 Variety Testing and Evaluation System The variety testing and evaluation system should change the current, unsteady system which is characterized as “semi-official, semi-civilian”, and construct a comprehensive evaluation system that includes variety testing and evaluation organizations, standards, and procedures.42 According to the provincial agro-ecological regionalization and arrangements for agricultural breeding and distribution, variety testing and evaluation institution is composed of the agricultural administrative department, variety management department, teaching and scientific research department and the key original breeding farms (plants), and a special office responsible for daily works of variety testing and evaluation. According to the actual situation of regional agricultural production, the provincial-­level administrative department responsible for agricultural variety management formulates the evaluation standards, which are a series of technical regulations for the scientific evaluation of the safety and use value of agricultural product varieties in production. In order to avoid social risks brought by genetically modified farm products, genetically modified detection techniques should be included in the technical regulations. The variety testing and evaluation procedures can be divided into the regional identification testing phase and the production identification testing phase. Based on the natural conditions such as soil and topography, the regional identification testing phase divides a region into different ecological zones and selects several representative testing points in each ecological zone to arrange the experiment. Its purpose is to evaluate the productivity, adaptability, stability, and quality of the experimental variety, and carry out preliminary identification of a suitable planting range of the variety. The production identification testing phase selects good strains. Based on the conditions close to field production and technical measures adopted in the production, seeds will be planted in different representative locations, and experiments will be conducted on the production 42  The Bureau of Seed Management, Ministry of Agriculture, PRC.  Measures for the Examination and Approval of Major Crop Varieties (Order of the Ministry of Agriculture No. 44).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

259

potential and resistance of the experimental variety. The purpose of this phase is to determine whether to continue to generalize the variety or not. The workflow is: variety survey → data analysis summary → evaluation → announcement.43 Variety survey: This is the basic work in the variety evaluation process. The experimental varieties planted in different ecological zones will be tracked and investigated, and thereby characteristics, productivity, adaptability, stability, and disease resistance of experimental varieties in different ecological zones and environmental conditions can be determined and properly catalogued. Experimental data analysis summary: Establishing a variety testing database, based on which the trial data reported by testing points will be summarized, testing results reviewed, year-to-year comparisons conducted, and targeted advice to the characteristics of experimental varieties in agricultural production proposed. Comprehensive evaluation: According to the results of the analysis summary, the variety testing and evaluation office will organize relevant experts from agricultural administrative departments, teaching, scientific research, promotion, production, management, and application to comment. Moreover, the office may invite representatives from farming communities to participate if necessary. The discussion focuses on the following issues: the mutual effects of experimental varieties and the environment; the stability of the experimental varieties; and redefining appropriate production areas of the variety. If there is serious degradation of species or insurmountable shortcomings in the use of experimental varieties, or experimental varieties are not suitable for continued use in production, it is time to stop the operation and promotion. For varieties that are particularly sensitive to environmental conditions or are not suitable for planting in special environments, warnings should be given to limit production testing areas, and experimental institutions should be recommended to continue the “three features” identification of productivity, adaptability, and stability. Announcement: The testing and evaluation results of experimental varieties having passed the identification shall be notified by the variety testing and evaluation office to the agricultural administrative department at the same level, and the agricultural administrative department shall issue an announcement. 43  Liu, Sujuan. An Analysis of Cotton Variety Test Evaluation System in Hebei Province [J], China Cotton, 2005 (1); Wang, Dongpo. A Brief Analysis of Cotton Variety Test Evaluation System in Liaoning Province [J], Bulletin of Agro-sci & tec, 2011 (12).

260 

W. CHEN

5.2.3 Seed Quality Guarantee System The seed industry is very important as a whole in agricultural production. Therefore, to promote the sound development of seed industrialization and ensure the safety of agricultural production, it is necessary to increase investment and improve the construction of quality supervision and inspection network systems at provincial, municipal, and county level, highlighting the leading role of the provincial inspection center, strengthening the main role of the municipal-level testing center, and intensifying the basic role of county-level quality inspection stations. Improving the seed quality supervision and spot check system: China should formulate an entrusted inspection work system, and strive for quality entrusted inspection. It should also increase capital investment, thereby achieving normalization and institutionalization of seed quality supervision and spot checking. Meanwhile, it is necessary to improve the inspection system of new varieties before reporting to higher authorities, and ensure the consistency, uniformity, and stability of genetic traits of new seed varieties. Improving the quality of supervision and inspection personnel in an all-round way: China should strictly carry out the appraisal system for inspectors, implement a training program for seed inspectors, and hold regular inspection technical exchange meetings to comprehensively improve the overall quality of inspectors. Improving seed quality testing capabilities: China should develop and promote new technologies and methods to adapt to the new development of seed quality testing, and innovate and improve testing methods and means. It should also optimize DNA fingerprinting of crop varieties, and develop and improve national specifications for molecular marker identification. Improving the quality guarantee systems of seed enterprises: Seed enterprises should strengthen their quality guarantee systems, and do the following: increase capital investment, expand the construction scale of seed inspection room and team, thus matching it with the actual inspection work; carry out seed inspection work throughout the entire process of production, processing, and sales; improve the enterprise quality guarantee system, strengthen seed quality control, and finally form a good corporate image. 5.2.4 Endangered Species Management System Improving the conservation management of endangered biological species is an essential part of the biological species resources protection with protecting of biological germplasm resources at its core.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

261

Improving the list of endangered species: According to their distribution, situation, and other factors, China should set up dynamic standards for the collection and classification of endangered species, optimize the collection and revision procedures for protected species, improve the standards and procedures for the collection of protected species, and make the list reasonably connected to existing industrial policy systems. Moreover, the list of endangered species in China will be established and regularly evaluated by scientific and technological departments as a supplementary list of China’s other key protection lists. Relevant management departments, together with invited experts, scholars, and the public, shall formulate a restoration plan of species resources in accordance with the grades and characteristics of the species list. In the meantime, the management departments are responsible for long-term monitoring of the living conditions of species, and efficiently adjust the recovery plans according to the changes in resources to effectively carry out the protection of endangered species. Establishing an assessment system of endangered species: Focusing on resource restoration and species conservation of the biological protection list, China shall construct a scientific assessment system, develop evaluation criteria, and monitor and evaluate resources to provide a basis for including species in the list and formulating recovery plans. It should also evaluate the implementation of resource recovery plans, and report to the society on the changes in the resources of protected species on the list. 5.2.5 Information Service System of Biological Species Resources While fully understanding the status and role of informatization in the development and utilization of biological species resources, China should follow the basic ideas of “government-led, the public participating, information shared, operation mechanism perfected, and a win-win situation achieved”. To better cope with the characteristics of data dispersion and rapid changes in the demand, China should establish and improve the information network service system of biological species resources, including a comprehensive database of biological species resources, a data-­sharing platform, and a multi-level information service model for biological species resources. Comprehensive database of biological species resources. The information on biological species resources is rich, wide, and scattered. Therefore, to effectively develop and utilize biological species information resources, a comprehensive database must be established, which includes stocks and changes of biological species resources at home and abroad, agricultural biological species libraries, agricultural breeding research results libraries,

262 

W. CHEN

patent libraries, and human resources databases. The purpose is to provide information services for catching up with the utilization trends of biological resources at home and abroad and the future development of agricultural breeding. Data-sharing platform for biological species resources. It is necessary to do the work of targeted collection, analysis and reporting of management documents, laws and regulations, notices, industry standards, breeding research at home and abroad, breeding development and progress, domestic and international biological species resources information, as well as market and commercialization information on biological species resources. Multi-level information service model for biological species resources. It is necessary to integrate domestic and international biological resources and information services and establish an information service model for biological species resources that may develop into different typologies. For researchers and management departments, scientific journals, comprehensive databases, and data-sharing platforms will be the major channels to provide the latest domestic and international utilization technologies and methods of biological species resources for tracking the tricky and hot topics. For grass-roots farmers, it is necessary to build an information dissemination channel of “publications-Internet-stores” for the achievements in the utilization of biological species resources, so as to disseminate and promote new varieties and technologies for the utilization of biological species resources in an illustrated and easy-to-understand way. 5.3  Path Choices for Constructing the System of Biological Species Resources Protection 5.3.1 Ownership and Policy Analysis of Biological Species Resources The property rights of biological species resources have special forms. From the perspective of property subjects, these property rights belong to the society as well as the public. However, from the perspective of the availability of biological species resources, the owners and users of biological species resources have absolute and unequal rights. The public can only entrust the control of property rights of biological species resources to social institutions, requiring the government to exercise its functions and forcing environment users to rationally utilize biological species resources.44 44  Li, Ruie. Rational Thinking on the Definition of Environmental Property Rights and the Protection of Environmental Resources [J], Modern Economic Science, 1999 (3).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

263

Therefore, the property rights form of biological species resources and the implementation approach of benefits are a special situation. First, the connotation of property rights is uncertain. The property rights objects of biological species resources include multi-type resource forms such as biological resources which utilize land as the carrier and scatter in the ocean, and terrestrial ecology, genetic resources, and ecological landscape resources. Some objects also intersect with the private property rights of resources. In addition, the subjects of biological species resources also feature intersectionality and diversity. The state and local collective can be the main body of property rights, while enterprises and private individuals can also be the subjects. An open ecosystem enables property rights entities to make legal changes. This means it is difficult to accurately define the objects of property rights of biological species resources. Second, property rights transactions are not equivalent. Since biological species resources have the property of public ownership, and the definition of property rights is rather difficult, the property rights transaction and the realization of rights are usually nonequivalent. On the one hand, the society is the beneficiary of biological species resources protection as well as the payer of the cost, while there are differences in the distribution of various social ecological benefits of biological species resources. On the other hand, enterprises or individuals that pay for property rights on private resources to protect biological species resources are unable to obtain corresponding benefits through market channels or economic compensation policies. According to China’s national conditions, laws, and regulations, the property right of biological species resources is based primarily on public ownership. However, in actual operation, real property owners are absent, and it is difficult to realize the use rights and usufruct of property rights. Due to the unclear boundary between public ownership and property rights of biological species resources, it is difficult to use the market to carry out property rights transactions of biological species resources, and to protect the interests of property owners, which in turn leads to the externalities of biological species resources. For example, biological species resources are utilized excessively, incomplete property rights restrict the use of resources in protected areas, and the supply of biological species resources that are not state-owned is irrational.45

 Dai, Xingyi. Towards Green Development [M], Shanghai: Fudan University Press.

45

264 

W. CHEN

5.3.2

 olicy Choices for the Conservation of Biological P Species Resources China’s previous policy goal for biological species resources was protection, but the new policy goal should be development-oriented, from a single protection goal to multiple systematic goals that can provide support, ecological security, and resource output for sustainable development. The new policy goals can not only achieve the protection of biological species resources, but also coordinate protection and economic development, achieve development in protection, and realize the optimal allocation of equity, benefits, and value in development. (i) Establishing a sound legal system. The basis of biological species resources protection policy should be a sound legal system. Most of China’s current biological species protection laws and regulations are outdated, and therefore cannot meet the requirements of the development of biological species protection under the new situation. In addition, there are major conflicts between industry management regulations, which impact the effectiveness of law enforcement. At present, legislation should be amended to completely solve the problem of contradictions between regulations of different administrative departments. At the same time, the property rights of biological species resources as well as other corresponding rights and interests should be clearly stipulated, and thereby legal groundwork can be established to adjust the interests and eliminate external influences through the use of market and policies. In terms of the type of legislation, it is also necessary to increase the legal provisions with positive incentive characteristics to encourage social forces to participate in the protection of biological species resources. (ii) Establishing a property rights protection mechanism for the capitalization of biological species resources. China should establish and improve the property rights system of biological species resources, clarify the ownership of biological species resources, define the boundaries of ownership, use management rights and environmental rights, strengthen the conservation management of biological species resources, and promote the internalization of external costs of biological species resources.46 The specific con46  Eggertsson, Thrainn. Economic Behavior and Institutions [M], Beijing: The Commercial Press, 2004.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

265

tent of the property rights system should include the following. First, it is necessary to clarify the ownership of biological species resources from a legal perspective, establish an asset management system, and strengthen the protection of resources ownership. Second, the separation of ownership and use rights of biological species resources should be promoted, establishing a market for paid use of resources, transfer systems, and resource property rights, and institutionalizing the paid use and transfer of biological species resources. Third, it is necessary to establish real accounts and value accounts for biological species resources. Finally, the compensation system for the utilization of biological species resources should be built and improved. (iii) Establishing a mechanism for community participation. Constructing a community participation mechanism can better integrate development policies with biological species resources conservation policies.47 At present, due to the restriction of the economic development and geographical location, considerable bio-species resources conservation areas in China are difficult to coordinate with its traditional agricultural model with the conservation of biological species resources. If China changes the agricultural development mode and the utilization pattern of resources, and uses the special environment formed by biological species resources for production, such as eco-tourism based on bio-­ landscape resources with regional characteristics, the agricultural production and efficiency can be improved, farmers’ income can be increased, and the relationship between the production activities of farmers and the conservation of biological species resources can be strengthened, and thus a truly mutually beneficial protection mechanism with community participation can be established. (iv) Extensive use of economic policy instruments. According to the operating law of market economy combined with the characteristics of China’s biological species resources, especially the characteristics of resources ownership and management rights, elements such as taxation, market creation, compensation, and other economic means can be adopted.

47  Wetlands International-China. Community Participation in Wetlands Management [M], China Forestry Publishing House, 2001.

266 

W. CHEN

Taxation. Revising tax regulations should be based on the principle of “who benefits, who pays”. China shall levy an ecological tax on the direct beneficiaries of biological species resources conservation to reduce externalities in resource use, or levy a tax on consumer groups of biological species resources and products, thereby reducing the demand. Market creation. On the basis of clarified property rights, it is necessary to encourage the introduction, domestication, and cultivation of biological species resources with mature technologies, and form a market through large-scale production. On the basis of scientific protection and quota management, China should provide specific biological species resources for specific groups in specific regions at specific times, so as to capture the market. This method not only can maintain the food chain and ecological balance through human activities, but will also meet the specific needs of specific social groups for specific biological species resources. Compensation. The compensation objects are the bearers of negative externalities in the protection of biological species resources, because it is difficult to make up for the loss of these groups through the market, and the negative externalities can be better solved by means of government policies.48 Therefore, regional governments and community groups affected in the biological species protection areas are the compensation objects. Moreover, the compensation can be achieved in various forms such as fiscal transfer payments, special compensation payments, and financial subsidies.

6   Constructing the System of “Resource and Ecologically Sound Agriculture” Comprehensive Evaluation and the Analysis of Hunan Province “Resource and ecologically sound agriculture” is a concrete manifestation of a “resource and ecologically sound society” in agricultural construction, but in terms of theory and practice, either “resource and ecologically sound society” or “resource and ecologically sound agriculture” is at the stage of exploration. Advancing “resource and ecologically sound agriculture” lacks an authoritative and quantifiable evaluation index system similar to the construction of “ecological cities”, which leads to a lack of basis and goals in monitoring, assessing, and guiding the development of  Ren, Xianyou, Xiao, Fei & Mo, Minhao. Wetland Resources in China: Economic Analysis and Ecological Restoration Research [M], Beijing: Science Press, 2012. 48

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

267

“resource and ecologically sound agriculture”. Therefore, designing a scientific and reasonable “resource and ecologically sound agriculture” evaluation index system has become very urgent. “Resource and ecologically sound agriculture” is a multifaceted macroscopic concept involving social progress, economic development, ecological construction, environmental protection, and system design. Designing a comprehensive evaluation system that quantitatively evaluates “resource and ecologically sound” agricultural development will help to clarify its assessment objectives and index systems, achieve quantitative comparison of performance in different regions and periods, and enhance the practical operation, implementation, and regulatory capabilities of policies. In practice, to establish a practical evaluation index system, it is necessary to accurately grasp the nature, characteristics, status, functions, trends, and boundaries of the evaluation objects, and fully combine the characteristics of current statistics and research systems to ensure the availability of index data and the realistic operability of the evaluation system. As for the sustainable development of regional agriculture, by improving resource utilization and output levels, saving resources, optimizing resource allocation, and protecting, nurturing, and controlling the eco-­ environment, “resource and ecologically sound agriculture” can improve the quality of farm products and maintain food safety, thereby comprehensively realizing agricultural economic development and social progress. Therefore, when assessing the role of “resource and ecologically sound agriculture” in the sustainable development of regional agriculture and the construction of a “resource and ecologically sound society”, we should launch the study mainly from several major aspects such as the optimization of rural economic structure, the harmonious development of rural society, the effective use of agricultural resources, and agro-eco-­ environmental protection. 6.1  The Design Principles of Comprehensive Evaluation Indicators for “Resource and Ecologically Sound Agriculture” The role of “resource and ecologically sound agriculture” in the sustainable development of Chinese agriculture is manifested in all aspects of social and economic operations as well as the natural environment. Therefore, it is necessary to establish an index system that can cover multiple aspects and conduct multi-level evaluation. There are certain general principles for the selection of indicators in the index system, such as policy

268 

W. CHEN

recommendations which are scientific and reasonable, available to data, easy to operate, and easy to evaluate. In order to scientifically evaluate the impact of “resource and ecologically sound agriculture” on regional agricultural sustainable development and “resource and ecologically sound society” construction, it is necessary to establish a set of evaluation index systems that can scientifically measure the level of regional agricultural sustainable development. Through the study of regional time series changes and the comparative analysis of “resource and ecologically sound” agricultural construction in different sample areas, the development of “resource and ecologically sound agriculture” in a region can be measured, thereby providing the correct decision-making basis for selecting the best mode and main direction of regional “resource and ecologically sound” agricultural development. This section mainly adopts the AHP to establish a comprehensive evaluation index system on the following principles. 6.1.1 Principles of Being Scientific and Operable Being scientific means that the evaluation systems should be designed to effectively cover all aspects of “resource and ecologically sound agriculture” development. Moreover, the indicators should be typical, which can not only reflect the logical connection and operation rules of the input and output of each subsystem, but can also be easily accepted by researchers and the public. Being operable means that the data of each indicator involved in the evaluation system should be easily obtained. In particular, there should be time series data that can be obtained continuously over years. Similar indicators in multiple regions can be used to facilitate horizontal comparison. For non-statistical indicators, simple investigation should be conducted to evaluate these indicators. 6.1.2 Principles of Principal Component and Independence As there are many indicators that may be screened to characterize society, economy, and environment, it is necessary to screen the indicators and calculate their correlation coefficient so that the final indicators can meet the principles of principal component and independence. 6.1.3 Principles of Integrity and Hierarchy “Resource and ecologically sound agriculture” involves a wide range of aspects. The overall investigation requires that its indicators should cover major subsystems such as society, economy, resources, and environment,

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

269

but the indicators should not be too complicated, otherwise this will greatly reduce the possibility of practical application of indicators and increase evaluation cost. Generally, there should be no more than 7 indicators in each criterion layer, and no more than 30 in the entire index system. The hierarchical principle means that mature technical ideas such as the analytic hierarchy process can be adopted, and the indicators are decomposed step by step from the general goal to sub-target of subsystems, and then to each specific index, thus forming a multi-layered tree structure. 6.1.4

 he Principle of Combining Qualitative Research T with Quantitative Research In the process of establishing an evaluation system, it is difficult to quantitatively describe some indicators, and only qualitative assessments and judgments can be made. Therefore, expert evaluation methods are adopted to deal with them. The specific treatment methods should be selected according to evaluation methods. 6.1.5 The Principle of Combining Static and Dynamic Indicators The development of “resource and ecologically sound agriculture” is both an ambitious goal and a realistic process. The index system for evaluating its development should not be limited to assessing the status quo but should be extended to the impact of “resource and ecologically sound agriculture” development on the construction of “resource and ecologically sound society” as well as the judgment and prediction of future development trends. Therefore, the evaluation index system should not only have static status indicators that reflect the total scale and development of “resource and ecologically sound agriculture” development, but should also include indicators which can comprehensively reflect the dynamic characteristics and development trends of “resource and ecologically sound agriculture”. 6.2  The Logical Framework and Common Index System of “Resource and Ecologically Sound Agriculture” Comprehensive Evaluation Looking at the current domestic research on the evaluation index system of “resource and ecologically sound agriculture” and sustainable agricultural development, the logical framework of most index systems is a

270 

W. CHEN

tree-­shaped hierarchical structure, which is generally divided into a threelayered or four-layered structure. The three-layered structure consists of the target layer (also called the overall layer or system layer), the criterion layer (also called the control layer or the state layer), and the indicator layer (also called the variable layer), while the four-layered structure adds a transitional level which refers to the domain layer between the criterion layer and the indicator layer. The criterion layer explains how the entire evaluation system discusses regional “resource and ecologically sound” agricultural development, which is one of the focuses discussed below; then the indicator layer under the criterion layer should continuously screen and select various indicators that are sufficient to reflect the status of the criterion layer. At present, the designs of the criterion layer in “resource and ecologically sound agriculture” evaluation systems are incredibly similar to each other. Generally, the system may include several modules such as an economic development index, social progress index, eco-environmental protection index, and resource utilization efficiency index. Some studies also include a system design module and index module of policy implementation. This book analyses the impacts of “resource and ecologically sound agriculture” on the sustainable development of regional agriculture in a targeted manner. According to the main scope of its impact, we will follow the construction principle of the index system and draw on similar evaluation index systems and related research literature in other studies. Moreover, the indicators selected by many scholars are summarized, and some indicators, which are relatively dated due to economic and social development, are deleted, thereby forming a universal “resource and ecologically sound agriculture” evaluation index screening table. It consists of three levels, namely the target layer, the criterion layer, and the indicator layer. The target layer can obtain an evaluation index of the comprehensive regional “resource and ecologically sound agriculture” development; the criterion layer consists of four sub-modules, namely the economic development index, social progress index, resource conservation use index, and eco-environmental protection index. In the indicator layer, according to the definition of “resource and ecologically sound agriculture” and the above-mentioned indicator setting principles, 121 reference indicators are determined for different criterion layers (see Table 5.8).

Criterion layer

Social Progress Index

The Development Economic of Regional Development “Resource and Index Ecologically Sound Agriculture”

Target layer

(continued)

Total farm products value, agricultural or rural fixed asset investment, annual export volume of green farm products, output of high-quality farm products, total profits of agricultural and sideline products processing enterprises, added value of rural industries, the proportion of primary industry in GDP, the annual growth rate of primary industry GDP, per capita GDP of rural population, per capita net income of farmers, per capita grain output, growth rate of farm products value, the proportion of rural service industry in total farm products value, the proportion of added value of high-tech industry, the proportion of the planting structure, the proportion of cash crops acreage, the proportion of aquaculture industry output value, per capita livestock and poultry production, the proportion of precision agriculture, the ratio of economic output to input, agricultural labor productivity, exchange capacity of agricultural and sideline products, penetration rate of improved varieties, the proportion of farmers promoted by agricultural leading enterprises, popularity of green brands, price advantages of green foods, coordination degree of migrant workers, agriculture conversion efficiency, the commodity rate of farm products, the processing rate of farm products (the output value of farm products processing industry/the total value of farm products), the marketization degree of green farm products, the balance of rural deposits at the end of the year, the proportion of farmers participating in agricultural insurance Per capita education years of agricultural labor force (the proportion of employees having received high school, secondary, or higher education in rural areas), the proportion of professionally trained farmers, average life expectancy, natural population growth rate, the contribution rate of agro-scientific and technological progress, rural urbanization rate, rural road hardening rate, rural planting level, rural infrastructure investment, the proportion of research personnel per 10,000 persons, regional road density, the proportion of rural surplus labor force, per capita net income of rural upper-income households, the proportion of education funds to GDP or fiscal expenditure, the income difference between urban and rural residents, the degree of subsistence allowance in rural areas, the number of village libraries, the degree of legal guarantees, the satisfaction of farmers with the openness of village government affairs, the satisfaction of farmer social security, the Engel’s coefficient of rural residents, per capita housing area of rural residents, the number of telephones per 100 households of rural residents, the number of beds in hospitals and health centers per 10,000 persons, living expenses of rural residents, the proportion of cultural and educational entertainment expenditure for rural residents to living consumption, the proportion of rural residents’ transportation and communication to living consumption, the number of computers per 100 households of rural residents, the proportion of medical personnel per 1000 persons

Indicator layer

Table 5.8  “Resource and ecologically sound agriculture” evaluation index system

Target layer

The total power of agricultural machinery per unit area of farmland, the proportion of land-scale operation or intensive cultivation index of farmland, the proportion of agricultural employment, the grain output per unit area of farmland, the improvement ratio of medium-low-­yield fields, the multiple cropping coefficient of rural land, rural land productivity (farm products value/farmland area), water consumption/ ¥10,000 of farm products, agricultural water consumption coefficient, effective irrigation rate, electromechanical irrigation area, water use efficiency, water pollution index, the area ratio of straw returning (returning area/planting area), the area ratio of plastic mulch culture (coverage area/total planting area), the effective utilization coefficient of fertilizer (agricultural total output value/fertilizer application amount), rural electricity consumption, agricultural electricity consumption index (electricity consumption/primary industry total value), firewood consumption, agricultural diesel consumption index (diesel consumption/primary industry total value), the utilization rate of livestock manure, agricultural film recovery rate Area of returning farmland to forest, forest coverage, total afforestation area, area of young growth tending, per capita forestland area, ratio of soil erosion control (governance area in current year/soil loss area), area ratio of stable yields despite droughts or floods (area of stable yields/farmland area), area ratio of soil testing and formulated fertilization, area ratio of micro-­element fertilizer application, area ratio of biological control, soil organic matter content, soil fertility level, soil pollution index, the proportion of nature reserves to administrative region, area ratio of organic, green and pollution-­free farm products, the proportion of natural disaster-affected areas or the disaster mitigation rate, land erosion and rock desertification index, environmental protection input rate (environmental protection input/total farm products value), intensity of fertilizer use, pesticide and film (total factor application/cultivated area or planting area), owning rate of biogas, processing rate of waste gas and water, harmless treatment rate of rural domestic waste, environmental protection awareness, “three wastes” emissions per unit of GDP, comprehensive utilization rate of straw, scale of new energy utilization, the proportion of purchasing green pesticides, fertilizers, feed, use ratio of restricted use products, standards for hazardous substances residues, soil quality (physical and chemical properties) change index, fertilizer loss rate, pesticide residue rate, “three wastes” discharge rate of township industry, network compliance rate of farmland forest, frequency of acid rain, compliance rate of drinking water quality

Resource Conservation Index

Eco-­ environmental Protection Index

Indicator layer

Criterion layer

Table 5.8 (continued)

Literature sources: Kuang, Yuanpei & Luo, Hehua. The Construction and Empirical Analysis of “Resource and Ecologically Sound Agriculture” Comprehensive Evaluation Index System [J], Journal of Agrotechnical Economics, 2010 (7); Peng, Yi & Zhai, Huanhuan. The Evaluation Method and Index of the Production System of Resource and Ecologically Sound Agriculture [J], Seeker, 2010 (6); Zhou, Dongliang. Evaluation on Two-Oriented Agricultural Development around Dongting Lake Region and Its Obstacles [J], Journal of Hunan Agricultural University (Social Sciences), 2011 (2); Li, Hongze & Zhu, Konglai. Ecological Agriculture Comprehensive Efficiency Evaluation Index System and Assessment Method [J], China Forestry Economy, 2007 (5); Wang, Ju, Xie, Shiyou, Ren, Wei & Dai, Guofu. Comprehensive Evaluation of the Sustainability of Ecological Agriculture in the Three Gorges Region [J], Journal of Southwest China Normal University (Natural Science Edition), 2011 (6); Wang, Xiaofang. Evaluation on Ecological Agriculture Benefit and Coordinated Development in Henan Province [J], Journal of Anhui Agro-sciences, 2011 (11); Li, Wanming & Liu, Liuleilei. Design of Oasis Ecoagricultural modernization Evaluation Index System [J], Ecological Economy, 2009 (4); Comprehensive evaluation of county eco-­efficient agriculture based on AHP——A case study of Fuyang City [J], Journal of Fujian Agriculture and Forestry University (Philosophy and Social Sciences), 2009 (2); Cui, Yuanfeng, Yan, Lizhi, Lu, Jinzhu & Qu, Zhiguang. Research on the Comprehensive Evaluation System of Green Agricultural development in China [J], Issues in Agricultural Economy, 2009 (6); Ren, Yunhe. Research on Green Agriculture Evaluation Index System in Shandong Province [J], Comparative Economic & Social Systems, 2006 (4); Wang, Shuyan, Meng, Jun & Bai, Jiyun. Comprehensive and Rational Appraisal of the Regional Sustainable Agriculture [J], Journal of Agricultural Mechanization Research, 2009 (1); Luo, Shougui et al. The Systematic Appraisal and Planning of Changshu SARD [J], Scientia Geographica Sinica, 2000 (5); Liu, Yuezhen. Sustainable Agriculture and Its Assessment Index System [J], Agricultural Economy, 1998 (12); Qu, Futian, He, Jun & Wu, Haojie. Socialism New Countryside Building in Jiangsu: Indicator System, Extent of Implement, and Interregional Comparison [J], Issues in Agricultural Economy, 2007 (2)

274 

W. CHEN

6.2.1 Economic Development Index The economic development index includes aggregate indicators on economy, development indicators, economic structure and efficiency indicators, agricultural marketization indicators, as well as rural financial and insurance indicators. (i) Aggregate indicators on the economy include total farm products value, agricultural or rural fixed asset investment, annual export volume of green farm products, output of high-quality farm products, total profits of agricultural and sideline products processing enterprises, and added value of rural industries. (ii) Development indicators include the proportion of primary industry in GDP, the annual growth rate of primary industry GDP, per capita GDP of rural population, per capita net income of farmers, per capita grain output, growth rate of farm products value, the proportion of rural service industry in total farm products value, the proportion of added value of high-tech industry, the proportion of the planting structure, the proportion of cash crops acreage, the proportion of aquaculture industry output value, and per capita livestock and poultry production. (iii) Economic structure and efficiency indictors include the proportion of precision agriculture, the ratio of economic output to input, agricultural labor productivity, exchange capacity of agricultural and sideline products, penetration rate of improved varieties, the proportion of farmers promoted by agricultural leading enterprises, popularity of green brands, the price advantages of green foods, coordination degree of migrant workers, and agriculture conversion efficiency. (iv) Agricultural marketization indicators include the commodity rate of farm products, the processing rate of farm products (the output value of farm products processing industry/the total value of farm products), and the marketization degree of green farm products. (v) Rural financial and insurance indicators include the balance of rural deposits at the end of the year, and the proportion of farmers participating in agricultural insurance.

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

275

6.2.2 Social Progress Index The social progress index includes the rural population quality indicators, rural social development indicators, farmers’ democratic and legal indicators, and rural life quality indicators. (i) The rural population quality indicators include per capita education years of the agricultural labor force (the proportion of employees having received high school, secondary, or higher education in rural areas), the proportion of professionally trained farmers, average life expectancy, and natural population growth rate. (ii) Indicators of rural social development include the contribution rate of agro-scientific and technological progress, rural urbanization rate, rural road hardening rate, rural planting level, rural infrastructure investment, the proportion of research personnel per 10,000 persons, regional road density, the proportion of rural surplus labor force, per capita net income of rural upper-income households, the proportion of education funds to GDP or fiscal expenditure, the income difference between urban and rural residents, the degree of subsistence allowance in rural areas, and the number of village libraries. (iii) Rural democratic and legal indicators include the degree of legal guarantee, the satisfaction of farmers with the openness of village government affairs, and the satisfaction of farmer social security. (iv) The indicators of rural life quality include the Engel’s coefficient of rural residents, per capita housing area of rural residents, the number of telephones per 100 households of rural residents, the number of beds in hospitals and health centers per 10,000 persons, living expenses of rural residents, the proportion of cultural and educational entertainment expenditure for rural residents to living consumption, the proportion of rural residents’ transportation and communication to living consumption, the number of computers per 100 households of rural residents, and the proportion of medical personnel per 1000 persons. 6.2.3 Resource Conservation Index The resource conservation use index includes labor-saving indicators, land-conserving indicators, water-saving indicators, as well as energy-­ saving and consumption-saving indicators.

276 

W. CHEN

(i) Labor-saving indicators include the total power of agricultural machinery per unit area of farmland, the proportion of land-scale operation or intensive cultivation indicator of farmland, and the proportion of agricultural employment. (ii) Land-conserving indicators include the grain output per unit area of farmland, the improvement ratio of medium-low-yield fields, the multiple cropping coefficient of rural land, and rural land productivity (farm products value/farmland area). (iii) Water-saving indicators include water consumption per ¥ 10,000 of farm products, agricultural water consumption coefficient, effective irrigation rate, electromechanical irrigation area, water use efficiency, and water pollution indicator. (iv) Energy-saving and consumption-saving indicators include the area ratio of straw returning (returning area/planting area), the area ratio of plastic mulch culture (coverage area/total planting area), the effective utilization coefficient of fertilizer (agricultural total output value/fertilizer application amount), rural electricity ­consumption, agricultural electricity consumption indicator (electricity consumption/primary industry total value), firewood consumption, agricultural diesel consumption indicator (diesel consumption/primary industry total value), the utilization rate of livestock manure, and agricultural film recovery rate. 6.2.4 Eco-Environmental Protection Index The eco-environmental production index includes eco-environmental quality and land resources conservation indicators, and comprehensive indicators of the eco-environment. (i) Eco-environmental quality and land resources conservation indicators include area of returning farmland to forest, forest coverage, total afforestation area, area of young growth tending, per capita forestland area, ratio of soil erosion control (governance area in this year/soil loss area), area ratio of stable yields despite droughts or floods (area of stable yields/farmland area), area ratio of soil testing and formulated fertilization, area ratio of micro-element fertilizer application, area ratio of biological control, soil organic matter content, soil fertility level, soil pollution indicator, the pro-

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

277

portion of nature reserve to administrative region, area ratio of organic, green and pollution-free farm products, the proportion of natural disaster-affected areas or disaster mitigation rate, land erosion, and rock desertification indicator. (ii) Comprehensive indicators of eco-environment include environmental protection input rate (environmental protection input/total farm products value), intensity of fertilizer use, pesticide and film (total factor application/cultivated area or planting area), owning rate of biogas, processing rate of waste gas and water, harmless treatment rate of rural domestic waste, environmental protection awareness, “three wastes” emissions per unit of GDP, comprehensive utilization rate of straw, scale of new energy utilization, the proportion of purchasing green pesticides, fertilizers, feed, use ratio of restricted use products, standards for hazardous substances residues, soil quality (physical and chemical properties) change indicator, fertilizer loss rate, pesticide residue rate, “three wastes” discharge rate of township industry, network compliance rate of farmland forest, frequency of acid rain, compliance rate of drinking water quality. 6.3  Construction, Indicator Processing, and Weight Setting of the “Resource and Ecologically Sound Agriculture” Comprehensive Evaluation Index System Based on the statistical and survey data of the case study area and the universal evaluation index screening table of “resource and ecologically sound agriculture” in this book, the indicators are screened, the evaluation index system is constructed, and the index weights are measured and quantified. 6.3.1 Indicator Screening Indicator screening refers to the simplification and merger of indicators that are seen as highly relevant to each other. Generally, there are many highly relevant indicators in economic development. Therefore, we consider using the principles of principal component and independence to screen the indictor layer of the economic development index, and to merge the indicators with overly strong correlation. First, the original indicators are normalized, and correlation coefficients of each indicator in the criterion layer are calculated to prevent data redundancy caused by strong correlation. The correlation coefficients between each indicator are calculated as follows:

278 

W. CHEN

r=

∑ ( xi − x ) ( yi − y ) ∑( xi − x ) ( yi − y )

2



r is the correlation coefficient; xi and yi are the time series data of each indicator after the normalization process; x is the average number of xi; y is the average number of yi. Then, the indicators with large correlation coefficients are merged. 6.3.2

 he Evaluation System of the Regional “Resource T and Ecologically Sound” Agricultural Development Index According to the screening and processing of indicators, an evaluation system of the regional “resource and ecologically sound” agricultural development index is established (see Table 5.9 for details). The evaluation system is an organic system consisting of interconnected, independent, and quantified index factors. In addition, it is a set of indicators that regards the development of “resource and ecologically sound agriculture” as the ultimate goal and reflects the degree and level of “resource and ecologically sound” agricultural development. The regional “resource and ecologically sound agriculture” development index evaluation system consists of two levels of indicators. The first level is the criterion layer, including the economic development index, social progress index, resource conservation use index, and eco-environmental protection index. The second level is the indicator layer that includes 24 indicators.

(i) Annual growth rate (%) of gross output of agriculture, forestry, animal husbandry, and fisheries. Compared with the same period of the previous year, the growth rate of gross output of agriculture, forestry, animal husbandry, and fisheries this year is an indicator to measure the growth level of rural economic aggregates. (ii) The proportion (%) of output value (¥ 10,000) of their services to the total output value (¥ 10,000) of agriculture, forestry, animal husbandry, and fisheries. In that year, this proportion is an indicator for the optimization level of the rural industrial structure. (iii) Per capita food production (kg/person). The total amount of food produced by the agricultural producers in the calendar year divided by the population is an indicator for measuring economic benefit level of food production.

Social Progress Index

Economic Development Index

The Development of Regional “Resource and Ecologically Sound Agriculture”

Annual growth rate of gross output of agriculture, forestry, animal husbandry, and fisheries The proportion of output value of their services to the total output value of agriculture, forestry, animal husbandry, and fisheries Per capita food production Annual growing rate of rural fixed asset investment The annual growth rate of rural per capita net income Engel’s coefficient of rural residents The proportion of rural residents’ traffic and communication expenditures to living consumption The proportion of rural residents’ cultural and educational entertainment expenditure to living consumption Per capita housing area of rural families The number of village clinics in townships

Criterion layer Indictor layer

Target layer

(continued)

The housing security level of rural residents The level of rural health care

Rural residents’ enjoyment and development

The consumption structure of rural residents Consumption level of rural residents’ enjoyment and development

Economic benefit level of food production The reproduction level of social fixed assets in rural areas Income growth level of rural residents

The optimization level of the rural industrial structure

The growth level of rural economic aggregates

Evaluation target

Table 5.9  Regional “resource and ecologically sound” agricultural development index evaluation system 5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

279

Target layer The utilization level of rural land resources

Multiple cropping indicator (planting area/ farmland) Grain output per unit (food crop yields/planting area of food crop) The proportion of farmland plowed by machinery to planting area The proportion of effective irrigated area to farmland The proportion of water-saving irrigation area to the area of stable yields despite droughts or floods The proportion of straw returning area to planting area The improvement rate of medium-low-yield field Area ratio of biological control (biological control area/planting area) The ratio of soil erosion control (governance area/soil loss area) The proportion of natural disaster-affected areas (natural disaster-affected areas/occurrence area) Area ratio of soil testing and formulated fertilization (areas of soil testing and fertilization/ planting area) The intensity of fertilizer application according to its purity per unit area of farmland The intensity of pesticide application per unit area of farmland The intensity of use of agricultural plastic film per unit area of farmland

Resource Conservation Use Index

Ecoenvironmental Protection Index

The level of safe and sustainable use of agricultural resources The level of safe and sustainable use of agricultural resources The level of safe and sustainable use of agricultural resources

The level of rural land resources protection

The stability level of agro-ecosystems

The comprehensive mechanization level of agriculture Sustainable utilization level of agricultural water resources The sustainable utilization level of agricultural water resources The cyclic utilization level of agricultural resources The technical support level of agricultural production The ecological utilization level of agricultural resources The restoration level of agro-ecosystem

The utilization level of rural land resources

Evaluation target

Criterion layer Indictor layer

Table 5.9  (continued)

280  W. CHEN

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

281

(iv) Annual growth rate (%) of rural fixed asset investment. The growth rate of all fixed assets investment completed in rural areas compared with the fixed assets investment completed in the same period of the previous year is an indicator to measure the reproduction level of social fixed assets in rural areas. (v) The annual growth rate (%) of rural per capita net income. Rural net income refers to the aggregate income after the total income of rural residents less its payments. The per capita net income of farmers is the average net income of the rural population. The annual growth rate of rural per capita net income refers to the growth rate of farmer per capita net income in this year compared with that in the same period of the previous year, which is an indicator to measure income growth level of rural residents. (vi) Engel’s coefficient (%) of rural residents. The proportion of rural residents’ food expenditures in cash consumption expenditure is an indicator to measure the consumption structure of rural residents. (vii) The proportion (%) of rural residents’ traffic and communication expenditures to living consumption. Living consumption expenditure refers to the consumption expenditure of rural households for material and spiritual life. The proportion of rural residents’ expenditure on transportation and communication to living consumption refers to the proportion of rural residents’ service expenditures in transportation and communication to living consumption expenditures, which is an indicator to measure consumption level of rural residents’ enjoyment and development. (viii) The proportion (%) of rural residents’ cultural and educational entertainment expenditure to living consumption. The proportion of rural residents’ service-oriented expenditures for culture, education, and entertainment to living consumption expenditures is an indicator for measuring the consumption level of rural residents’ enjoyment and development. (ix) Per capita housing area of rural families (m2/person). The proportion of total housing area owned by rural residents divided by population is an indicator for measuring the housing security level of rural residents. (x) The number (unit) of village clinics in townships. The number of all village clinics in the district divided by the total number of townships is an indicator for measuring the level of rural health care.

282 

W. CHEN

(xi) Multiple cropping indicator (%). The average number of crops planted on the same plot of farmland in a certain period of time (usually 1 year), that is, the ratio of the planting area on the farmland to the area of farmland during the year. This is an indicator for judging the utilization level of rural land resources. (xii) Grain output per unit (kg/hectare). The annual average yield per hectare of actual planting areas of food crops is an indicator for measuring the utilization level of rural land resources. (xiii) The proportion (%) of farmland plowed by machinery to planting area. This is an indicator for measuring the comprehensive mechanization level of agriculture. (xiv) The proportion (%) of effective irrigated area to farmland. This is an indicator to measure the sustainable utilization level of agricultural water resources. Effective irrigated area refers to the area of farmland that has certain water sources and can be normally irrigated under regular circumstances. (xv) The proportion (%) of the water-saving irrigation area to the area of stable yields despite droughts or floods. The proportion of irrigated area using water-saving irrigation technology to all areas of stable yields despite droughts or floods is an indicator for measuring the sustainable utilization level of agricultural water resources. The area of stable yields despite droughts or floods refers to the area of farmland that can still give stable and high yields irrespective of drought or waterlogging because of the construction of water conservancy facilities according to certain design standards. (xvi) The proportion (%) of straw returning area to planting area. The proportion of crop area using straw returning technology to planting area of all crops is an indicator for measuring the cyclic utilization level of agricultural resources. Straw returning refers to a method that applies straw (wheat straw, corn stalk, and rice straw) which is not suitable for feed to the soil directly or after being decomposed and cooked. The crop planting area refers to the planting or transplanting area of crops that should be harvested by agricultural producers and operators during the calendar year on all land (farmland or non-farmland). (xvii) The improvement rate (%) of medium-low-yield field. The proportion of crop area that promotes the transformation technologies of medium-low-yield field to cultivated area in the planting

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

283

area of various crops is an indicator for measuring the technical support level of agricultural production. (xviii) Area ratio (%) of biological control. The proportion of crop area that promotes biological control technologies to cultivated area in the planting area of various crops is an indicator for measuring the ecological utilization level of agricultural resources. (xix) The ratio (%) of soil erosion control. The amount of area of soil erosion control divided by original soil erosion area is an indicator to measure the restoration level of the agro-ecosystem. (xx) The proportion (%) of natural disaster-affected areas. The amount of lost agricultural area caused by natural disasters divided by occurrence area of natural disasters is an indicator to measure the stability level of agro-ecosystems. (xxi) Area ratio (%) of soil testing and formulated fertilization. The proportion of crop area that promotes soil testing and fertilization technologies to cultivated area in the planting area of various crops is an indicator to measure the level of rural land resources protection. (xxii) The intensity of fertilizer application according to its purity per unit area of farmland (kg/hectare). The amount of fertilizer applied per unit area of farmland during the year is calculated according to its purity. It is an indicator to measure the level of safe and sustainable use of agricultural resources. (xxiii) The intensity of pesticide application per unit area of farmland (kg/hectare). The amount of pesticides applied per unit area of farmland during the year is calculated according to its purity. It is an indicator to measure the level of safe and sustainable use of agricultural resources. (xxiv) The intensity of use of agricultural plastic film per unit area of farmland (kg/hectare). The amount of agricultural film used per unit area of farmland during the year is an indicator to measure the level of safe and sustainable use of agricultural resources. 6.3.3

 ormalization of Quantitative Indicators and Digitalization N of Qualitative Indicators As there is no uniform metric between the indicators, each individual indicator is calculated by the normalization method to achieve a no-dimension analysis. Moreover, the normalized upper and lower limits can be determined according to the situation in other regions at home and abroad, or

284 

W. CHEN

existing research results and expert opinions. According to their nature, the indicators in the evaluation system are divided into three types: benefit type, cost type, and moderate type.49 It is assumed that the actual value of the indicator i in the evaluation area is xi, and its value range is determined by research to be [mi, Mi]. mi is the minimum value, while Mi is the maximum value. Then three different types of indicators can be normalized: For positive indicators: 1, xi ≥ Mi x − mi Ri { i , mi < x1 < Mi Mi − mi x1 ≤ m1

0,





For negative indicators: 1, M − xi Ri { i Mi − mi

xi ≤ mi m1 < x1 < M1

0, x, ≥ Mi





For moderate indicators: 2 ( Mi − xi ) Mi − mi

Ri {

2 ( xi − mi ) Mi − mi

0,

,

( Mi

+ mi ) / 2 ≤ xi < Mi

,

m1 < x1 < ( M1 + m1 ) / 2 xi ≤ mi 001xi ≥ Mi



In the case of the normalization requirements, the qualitative indicators are digitalized according to the standard scale of 01, 03, 05, 07, 09, showing the state of the indicator such as worst, poor, moderate, better, best. 49  Yang, Shunshun, Fu, Li, Yang, Xiaomao & Qu, Hongjuan. Study on Assessment Method of Urban Traffic Environment Sustainable Development Based on AHP and DEA [J], Mathematics in Practice and Theory, 2009 (13).

5  THE TRANSFORMATION OF AGRICULTURAL PRODUCTION SYSTEM… 

285

In addition, due to the influence of price factors, we should try to choose indicators with small proportion and increase and involving smaller absolute amounts of money. Meanwhile, the proportional indicators can be more convenient for horizontal comparison of different regions, because they do not involve absolute values, and will not be influenced by natural factors (such as range and size) and human characteristics. 6.3.4

The Weights of Indicators in the Evaluation Index System

(i) Calculation Rules After the establishment of the evaluation system, the weights and comprehensive weights of each indicator in its corresponding criterion layer are determined by the judgment matrix for comparison between every two indexes, expert consultation, and consistency testing. The judgment matrix for comparison between every two indexes is as follows:



 C11 C A =  21     C n1

C12 C22  Cn 2

… C1n  … C2 n  ,    … Cnn 

Among them, Cij is the score of the relative importance of indicator i and indicator j, indicating which indicator is more important when evaluating a specific target. The larger the Cij, the more important indicator i is when evaluating a specific target. That is, its weight should be greater than that of indicator j. Generally, it is expressed by the 1~9 scaling. The values of 1/9, 1/7, 1/5, 1/3, 1, 3, 5, 7, and 9 respectively indicate that indicator i is extremely unimportant, strongly unimportant, obviously unimportant, slightly unimportant, equally important, slightly important, obviously important, strongly important, or extremely important with respect to indicator j.

286 

W. CHEN

(ii) Hierarchical Ranking Grading rules for marking tables: based on a 7-point scale, the basic format of marking tables is as follows: A B1 B2 …… Bn

B1 1 B21

B2 B12 1

Bn1

Bn2

……

1

Bn B1n B2n 1

B1 to Bn are all sub-indicators used to represent the indicator A.  If Bij = 1, it means that Bi is as important as Bj for the evaluation of the upper layer A. As the indicator is necessarily of the same importance for itself, all diagonal elements are 1. Bij = 1 means that the importance of Bi is the same as that of Bj for the evaluation of A; Bij  =  3 means that Bi is slightly more important than Bj for the evaluation of A; Bij = 5 means that Bi is more important than Bj for the evaluation of A; Bij  =  7 means that Bi is much more important than Bj for the evaluation of A; Bij = 1/7 means that Bi is extremely less important than Bj for the evaluation of A; Bij = 1/5 means that Bi is less important than Bj for the evaluation of A; Bij  =  1/3 means that Bi is slightly less important than Bj for the evaluation of A. Based on the above calculation rules and hierarchical ranking methods, marking tables and consistency testing results of four criterion layers of economic development, social progress, resource conservation use, and eco-environmental protection are respectively shown in Tables 5.10, 5.11, 5.12, and 5.13. The test indicates: the matrix consistency indicator CI  =  0.0139, CR = 0.0124