Policy change needed to rationalize farming sector and increase output

China's agricultural sector is struggling to keep up with the demand for food from its increasingly urbanized population, a situation that experts say could be addressed by government reforms.

The countryside is rife with small plots owned by half-empty villages, where rural farming is based on traditional means passed down through the generations.

One plausible solution could include large-scale farms, advanced technologies and unified land markets, which will likely be introduced at the forthcoming Third Plenum of the Communist Party of China's 18th Central Committee, scheduled for Nov 9 to 12.

Currently, the Land Administration Law allows farmers only to lease their land without changing how it is used or managed. It strictly prohibits farmers from selling their land.

After China exempted farmers from agricultural taxes in 2006, many farmers left their land and went to work in the cities. Most didn't bother to lease their land because of the absence of a unified land lease market.

But the law grants the government the power to acquire a farmer's land for public use after compensating landowners. The government might then legally change the land use and transfer the land to real estate developers for exorbitant profits.

Compensation for the land is paid to a village committee and redistributed to the farmers. This distribution process has allowed many village leaders in recent years to illegally claim part or all of the compensation as a negotiation fee for representing the farmers, which in turn has created conflicts between real estate developers and farmers during the demolishing of the farmers' homes.

While China's rapid economic growth since 1978 has reshaped the nation, the collective rural land ownership and land acquisition systems have been left unchanged.

This has resulted in an exodus of young villagers, leaving the elderly to take over the farming. It is clearly necessary to find a balance between urbanization and agricultural modernization, as stated by central government think tank the Development Research Center of the State Council in its report published on Oct 26.