Officials and experts in the agriculture industry regard the contribution from private capital as good in that it helps provide local farmers with higher earnings.

"Those benefiting from the business chain in the modern agricultural industry will be local farmers who used to struggle with traditional farming of the land," said Tong Rihui, the senior officer in the agriculture management sector in the department of agriculture in Zhejiang province.

Tong added that investment from private businesses in the agriculture industry should be encouraged by the local government in the future to bring wealth to farmers and investors.

In addition, there has also been more investment made in the agriculture-related tourism market by Zhejiang businessmen in recent years.

Houses have been built for tourists to rent in attractive locations in the countryside in Zhejiang province, more than 90 percent of which have received investment from private capital. They make up to a 20 percent annual return.

The total amount of investment in farm tourism exceeded 20 billion yuan up to the first half of this year, according to statistics provided by Zhejiang Provincial Administration for Industry and Commerce.

"More people like to spend their holidays in these farmhouses in the countryside to enjoy the freedom. It benefits the farmers by providing an incredible increase in their earnings," said Lou Xiaoyun, the senior officer of the economic development department of the agriculture office in Zhejiang province.

Lou added that participating in agriculture-related projects has become a trend for businessmen who want to make money rather than focus on their original manufacturing-based trading industry.

yuran@chinadaily.com.cn