The priority of the No 1 Document of the Chinese central government has changed from water conservancy investment in 2011 to agricultural science and technology in 2012. As key resources such as land, water and labor are becoming more scarce, the increase in productivity from investment in water conservancy and adoption of new technologies will be critical to producing adequate amount of and nutritious food for a more well-to-do and urban population in China. But for China, it is not a choice between water conservancy and technology. It needs both.

The government's priority to accelerate investment in water conservation and irrigation projects in 2011 was widely welcomed, for it was long overdue. The government must keep this momentum and increase investment in irrigation for small farmers. It is important that these investments generate higher water supply capacity and help minimize the harms caused by droughts and floods. The government should also set up an effective monitoring and evaluation system to evaluate the progress, results and impact of such investment.

China's agricultural technology is at the forefront of the world in terms of crop yield for major staples such as rice, wheat and corn. Indeed, China's agricultural sector has seen tremendous improvements in productivity in the last few decades. According to United Nations Food and Agriculture Organization estimates, rice and corn yields in China were almost two times higher in 2010 compared to 1980, while wheat yield was about three times higher. Now, China produces 50 percent more rice and wheat than the world average per unit of land.