2. The agricultural foundation was consolidated.

Production of grain and other major agricultural products increased steadily. Despite severe droughts, low temperatures, scant sunlight, and serious floods in various areas, annual national grain output totaled 546.41 million tons, an increase of 15.59 million tons, up 2.9% from the previous year, and rising for the seventh consecutive year. Oilseed output was 32.39 million tons, up 2.7%. Livestock production was generally stable, the output of meat totaled 79.25 million tons, up 3.6%, and the output of aquatic products was 53.66 million tons, up 4.9%. Due to bad climatic conditions in some areas as well as reduced acreage, the output of cotton was 5.97 million tons, down 6.3%, and the output of sugar crops was 120.45 million tons, down 1.9%.

(Figure 3: Increases in Grain Output over Seven Consecutive Years)

We effectively implemented policies to strengthen agriculture and benefit farmers. Annual central government spending on agriculture, rural areas and farmers totaled 857.97 billion yuan, up 18.3% from the previous year. This included 192.8 billion yuan of central budgetary investment used in agriculture and rural areas, making up 49% of the total central budgetary investment. We further intensified our efforts to protect farmland, improved over 1.3 million hectares of rural land, and more than 300,000 hectares of land was cultivated for the first time. We fully implemented the plan to increase China's grain production capacity by 50 million tons, and intensified development of cotton, edible oil and sugar production bases as well as work on the crop protection project, the animal epidemic prevention system and the project to cultivate superior varieties and breeds. We formulated and carried out policies to intensify the construction of small and medium-sized water conservancy facilities, promote agricultural mechanization and ensure the production and supply of vegetables. We completed all tasks included in the plan of reinforcing reservoirs and started implementing the second round of projects to reinforce dilapidated small reservoirs. We supported the construction of distribution infrastructure such as wholesale markets for agricultural products, grain and edible oils storage facilities, and cold-chain logistics for agricultural products. Compared with 2009, the average minimum purchase prices for wheat and rice increased by 3 yuan and 6 yuan per 50 kilograms respectively; we successfully implemented a policy for temporarily purchasing and stockpiling soybeans and canola seeds; and there were sufficient supplies of chemical fertilizers. The four kinds of subsidies to grain growers amounted to 122.6 billion yuan.

Figure 4: Central Government Investment in Agriculture, Rural Areas and Farmers in the Eleventh Five-Year Plan Period)

Rural working and living conditions continued to improve. In 2010, we provided safe drinking water to an additional 61.86 million rural residents and to teachers and students at rural schools, making safe drinking water available to 71.3% of the rural population. An additional 300,000 kilometers of electric power lines were installed in the countryside. Altogether, 96% of towns and townships and 81% of villages are now connected to asphalt roads. We supported the construction of 1,343 large and medium-sized methane projects, providing methane to another 5 million households nationwide. We renovated dilapidated houses for 1.2 million rural households, thereby meeting the planned target. Another 100,000 stores were set up in the countryside under the project to get retailers to open stores in more townships and villages, and a rural network of chain stores began to take shape.

(Figure 5: Increases in Population Who Benefited from the Safe Drinking Water Project in the Eleventh Five-Year Plan Period)