The country has given much attention to issues concerning agriculture, rural areas and farmers since the 16th National Congress of the Communist Party of China (CPC) held five years ago. And the four No 1 documents issued by the CPC Central Committee consecutively offered strategies to solve related problems. A new situation in rural work and agriculture has been created.

The reform on rural tax and administrative fees was carried out to reduce the burden on farmers. When the agricultural tax was abolished last year, a total of 125 billion yuan ($16.6 billion) was cut annually, with more 140 yuan per capita.

The reform of the grain circulation system has promoted stable development in production and protected the interests of farmers. In April, 2004, the State Council decided to fully open the grain purchasing market and adopted a direct subsidy policy. From 2004 to 2006 the total direct subsidy to farmers was 39 billion yuan. All these moves have protected the interests of farmers and enhanced production capabilities. The country's grain production has increased for three consecutive years since 2004.