Chinese Farmers' Increasing Income

        Chinese farmers experienced the fastest ever rise in incomes last year. Their annual per capita wage has reached more than 4000 yuan, a record high that has alerted people's focus to how to sustain the trend and raise the farmer's living standards.Our reporter Shen Ting explores the efforts to achieve this goal.
        At the beginning of this year, China's central government issued its annual No.1 document highlighting the importance of increasing farmers' income. It is not the first time that this has been one of the country's annual objectives. Measures to increase income are being continued.
        Offering subsidies to farmers is the regular method of supporting agricultural activities. The country has vowed to further subsidize planting, seeds purchasing and farm machines, as well as to continue supportive policies towards practices, such as pig breeding.
        But reducing the farmers' burden through financial assistance is not enough for a real increase of income. Law Professor with the Southwest University of Political Science and Law, Li Changqi, explains the other support farmers are expecting:
        ''Chinese farmers have an increasing desire and passion to become richer. Some of them want to leave their hometowns for big cities, while some choose to stay at home and continue farming. No matter where they go and what they do, they are expecting more support in addition to direct subsidy.''
        The next question is how to create more space for them to earn money. The answer given by the public sector is to create more job opportunities in both rural and urban areas.
        China's central government has called to improve the bigger picture when it comes to farmers finding work. Local governments are encouraged to take advantage of their own situation and do something helpful to employment and public well-being.Beibei District is located in Chongqing municipality in Southwest China. Last year in Beibei, the annual income per capita for farmers increased by more than 20 percent, marking another step in increasing income.
        Huang Yuzhuo is a local official. Having worked with rural affairs for years, he has a deep understanding of the employment needed by farmers.
        ''Medium and small sized enterprises could absorb a lot of surplus labor from rural areas. We have many factories here, so farmers could be hired as workers. They don't have to leave their hometowns. They can take care of their families while earning money.''
        It is a simple example of labor flowing from agriculture to industry or the service sector. Huang Yuzhuo says enterprises are not only important in providing job opportunities. They also build business contact with farmers.
        ''If enterprises are operating well, they would buy more materials from farmers, which will then be used in food manufacturing. This situation brings benefits to both farmers and the enterprises.''
        The official points out that the foundation to such business partnership lies in the booming agricultural economy, which could offer many chances for co-operation and business chains. From this perspective, it is easy to understand why measures to activate the economy are high on the agenda of local governments.
        Beibei District, like many other rural regions in China, is making efforts to improve economic structure. It has transferred traditional crop growing to a more diverse agriculture, which includes gardening, tree and bamboo planting, as well as fishing. This, unsurprisingly, has provided more employment opportunities for farmers.
        In addition, farmers are encouraged to learn the skills that are need in modern agriculture practice and even business management. Huang Yuzhuo explains:
        ''We believe that their income is closely related to their skills, so education is the key measure through which they could become richer. Public sectors are now enhancing compulsory education to rural children and giving professional training to adult farmers, so that different generations could be educated at the same time for sustainable development.''
        Good education is particularly needed for those who want to boost their businesses. And what they increasingly expect are the low-interest loans and other credit forms.
        Professor Ma Jiujie from Renmin University in Beijing explains.
        ''The current financial assistance to rural areas is far from people's needs in terms of quantity, service forms, the number of products and even marketing. So China needs to further the finance reform in rural areas.''
        Earlier this year, the central government said it would encourage financial institutions to expand their presence in rural areas. Lenders and other entities will be expected to offer farmers services that are suitable for people on various incomes.
        But Professor Ma Jiujie says that financial institutions have their own considerations.
        ''The key question is profitability. Financial institutions, especially big banks both at home and abroad, have only a few branches in China's rural areas. They don't know much about farmers and the regional economy and therefore have a high cost in obtaining information on which to base on their decisions.''
        The scholar points out that the success of the financial institutions in rural markets depends on their determination and inner adjustment in financial products and services for rural people.
        The institutions may experience a transition stage when starting to understand China's agriculture industry, but after that period, their activities in rural finance would gradually benefit farmers.
        ''Rural finance is essential for production and consumption. It provides money for farmers to buy seeds, fertilizers and other resources. Otherwise their basic living would be affected. On the consumption side, farmers have an increasing demand for properties, so they need loans for housing and other issues closely related to their well-being.''
        In addition to financial assistance, institutional support is also necessary for the rural population.
        Professor Li Changqi, says further laws are needed to make an institutional guarantee for convenient living. This could reduce the farmer's intangible cost whilst getting a higher income.
        ''For rural areas, the laws are expected to be renewed to ensure enough input on good public service, such as education and the medical service. Meanwhile, regulations that could facilitate exchange between rural and urban areas are particularly needed.''
        Li Changqi says such measures are all aimed at providing equal opportunities to farmers, especially when they choose to work in city. A principle is that legal or institutional protection should keep their life, jobs and wages stable and not be affected by labor flows, their identity as a farmer or limited urban public services.
        On the other hand, purely flowing into cities is perhaps not the only way for farmers to seek chances and earn more money. Li Changqi re-iterates that cities may find it hard to provide services to so many domestic immigrants. He says actually in the countryside, opportunities could be created, as long as farmers have skills, open minds, and a spirit of self-reliance.
        ''Chinese farmers are relatively conservative and reluctant to learn new things. They are not strong enough when facing markets, risk and emergency, so they must increase their individual value. They need to become stronger by learning technology and management. ''
        Labor flows are unavoidable, but essentially farmers are encouraged to increase income through their own efforts in their hometowns. A combination of sound policies, laws and rural people's skills is expected to create the biggest benefits for individuals and the entire country.