China's Agricultural and Rural Economy Shows Strong Growth in First Quarter with Over 26 Million Land Contracts Renewed

Deep News
Apr 24

China's agricultural and rural economy maintained robust development momentum during the first quarter, with over 26 million rural households successfully signing extended land contracts. The foundation for grain and oil production remains solid, with winter wheat growth and development stages largely aligning with historical averages. Winter rapeseed cultivation area remains stable with favorable growth conditions. Spring farming operations are progressing smoothly, with the intended annual grain planting area remaining generally stable. Spring sowing has exceeded 20% completion, showing comparable or slightly faster progress than the same period last year.

The supply of "basket of goods" products remains abundant. Official data shows that output of pork, beef, mutton, and poultry reached 26.62 million metric tons in the first quarter, representing a 4.8% year-on-year increase. Milk production grew by 3.4% to 9.22 million tons. In response to declining hog prices, comprehensive production capacity adjustments have been implemented, resulting in a nine-month consecutive decline in the national breeding sow inventory. The number of newborn piglets in March recorded its first year-on-year decrease in 17 months, indicating gradual improvement in supply-demand dynamics and stabilizing prices. Domestic aquatic product output reached 15.471 million tons, up 4.3% year-on-year, while vegetable and fruit supplies remained generally stable with seasonal price fluctuations.

Precision assistance programs have achieved a positive start, with 10.13 billion yuan in new small-scale credit issued during the quarter to support targeted groups in developing production activities. Employment conditions for assistance recipients remain generally stable. Construction of livable and business-friendly villages continues to advance steadily, with the value-added of agricultural and sideline food processing industries above designated size growing by 6.8% year-on-year. Online retail sales of agricultural products maintained rapid growth, while rural residents' per capita disposable income achieved a real-term increase of 5.4%.

Rural development initiatives continue to progress, including improvements to living environments, enhancement of rural infrastructure and public services, and targeted management of prominent issues such as excessive bride prices and extravagant ceremonies. Cultural products and services in rural areas are being enriched, with accelerated efforts to address gaps in modern living conditions. Agricultural investment and rural consumption show steady growth, supported by projects including high-standard farmland construction and agricultural facility upgrades. Fixed-asset investment in the primary industry increased by 15.9% year-on-year nationwide during the first quarter. Effective measures to expand agricultural product consumption and continuously develop rural consumption scenarios have stimulated market activity, with rural retail sales growing by 3.1% year-on-year.

Rural reform continues to deepen, with comprehensive provincial-level pilot programs for extending second-round land contracts by 30 years upon expiration. Supervision mechanisms for rural collective resources, assets, and funds are being strengthened. New agricultural business entities continue to expand, with improved mechanisms connecting farmers to broader markets. Over 1.1 million business entities now provide socialized services, serving nearly 93 million small-scale farming households.

The agricultural processing sector demonstrated strong performance, with the Purchasing Managers' Index for national key leading enterprises reaching 58.1% in March, remaining in expansion territory. Rural leisure tourism flourished, driven by holiday and experience economies that create diverse consumption scenarios. Activities such as intangible cultural heritage experiences, folk custom tourism, and traditional markets have become popular choices, while spring outings for flower viewing and photography have emerged as trending activities. Increasing numbers of young entrepreneurs are establishing businesses in rural areas, with ventures like homestays and village cafes becoming new employment pathways.

Industrial integration continues to deepen, with support for regions to develop agricultural integration projects based on local advantages. Since the beginning of the year, development initiatives have included 40 new characteristic industrial clusters, 50 modern agricultural industrial parks, and 200 agricultural industrial towns. Future measures will focus on establishing hierarchical catalogs for rural characteristic industries, promoting differentiated, clustered, and branded development. Efforts will strengthen cultivation of distinctive brands, enhance market alignment, and expand value-added opportunities. The development of leading enterprises will drive integration of primary processing, deep processing, and byproduct utilization across agricultural, livestock, and industrial value chains.

Agricultural multifunctionality and rural value diversification will be further developed through premium rural tourism routes and experiential formats. New consumption scenarios including harvest markets, sporting events, performances, and leisure camping will promote integration of agriculture with culture, tourism, sports, and education. Channels for farmer participation in rural industrial development will be expanded, with improved mechanisms for equitable benefit sharing. Rural entrepreneurship will be vigorously promoted through enhanced policy support covering funding and land use, guiding diverse talent to pursue opportunities in rural areas and drive employment income growth.

The land contract extension pilot program adheres to the principle of "maintaining overall stability with minor adjustments." During the 14th Five-Year Plan period, seven province-wide and 221 county-wide pilot programs have been implemented. Guidance for provincial implementation will focus on three key areas: developing provincial-level implementation opinions in accordance with central policies, properly resolving extension-related disputes, and improving working mechanisms. For villages facing special circumstances such as farmland damage from natural disasters where residents generally request adjustments, minor modifications may be implemented while ensuring overall stability. The approach emphasizes maintaining existing contract arrangements for most households without wholesale restructuring or reallocation.

Mechanisms for the extension pilot program will be strengthened, emphasizing comprehensive Party leadership over the process. Implementation will follow the principle of "central coordination, provincial overall responsibility, and city-county-township implementation," with particular attention to grassroots levels as the main focus. Policy communication and training will be enhanced using various accessible formats to ensure accurate understanding and implementation of central government policies.

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