Chen said: "716.1 billion yuan (about $105.6 billion) is a huge sum of money. The question is will we use it properly?" He gave four suggestions.
First, the government should give priority to rural infrastructure and social programs. Chen suggested that the country should considerably increase land transfer income fees and taxes on the transfer of farmland to non-agricultural use. Funds from the issue of new treasury bonds should also go disproportionately to rural areas.
Second, the government should increase grain production. "The country should strictly protect farmland to ensure that the total grain acreage is no less than last year," Chen said.
He also said: "China's grain production capacity should be increased by 50 million tons, and the development of national bases for commercial grain production should be accelerated."
Third, China should develop modern agriculture with distinctive features alongside rural secondary and tertiary industries, particularly the processing of farm products, in order to increase rural incomes.
He stressed that vocational education and technical training in rural areas should be increased. "We should make it easier for rural residents, especially returning workers, to find non-farm jobs," Chen said.
"Governments at all levels should protect the legitimate rights and interests of rural migrant workers in cities, and those who return home should be encouraged to find jobs or start their own businesses," he added.
Fourth, farm product prices should be stabilized through a combination of control policies, including raising purchase price floors, manipulating reserves, temporary stockpiling, and exporting or importing.
Chen told China.org.cn: "The minimum purchase prices of wheat and rice in 2009 should be raised by 0.22 yuan and 0.26 yuan per kilogram respectively."
(China.org.cn March 6, 2009)