China extends rural reform and development in new Party document

Source: Xinhua | 10-20-2008 08:25

BEIJING, Oct. 19 (Xinhua) -- The Communist Party of China (CPC)Central Committee issued a landmark policy document on Sunday as a guideline to further rural reform and development.

LIBERALIZING FARMLAND USE

One of the biggest moves was to allow farmers to "lease their contracted farmland or transfer their land use right" to boost the scale of operation for farm production and provide funds for them to start new businesses.

"This breakthrough is necessary," said Xu Xianglin, an economics department professor at the Party School of the Central Committee of the CPC. "It meets the need of industrialization and urbanization in the current stage."

According to the full text of the document, markets for the lease of contracted farmland and transfer of farmland usage rights shall be set up and improved to allow farmers to sub-contract, lease, exchange and swap their land-use rights, or joined share-holding entities with their farmland.

Such transfers of land-use rights must be voluntarily participation by farmers, with adequate payment and in accordance with the law, the CPC Central Committee said.

In the past, however, farmland was collectively owned and meted out to farmers in long term leasing contracts.

Some experts said the new policy on land use could help absorb capital to the countryside so as to speed up modernization in agriculture, and accelerate the process of urbanization with more farmers going to seek jobs in cities.