By Dominique Fong
YANGXIN COUNTY, China -- To keep bugs from spoiling her wheat
and corn, Wei Junxia walks her plot of land spraying pesticide from
a container on her back.
A neighbor uses an even simpler tool to boost production: a
plastic tube jammed into a bag of fertilizer that she hoists over
her shoulder.
The two women are among roughly 280 million people employed on
farms in China, more than 100 times as many as in the U.S.,
according to government figures. Chinese agriculture is dominated
by small farms with low crop yields; the average Chinese farm is
less than two acres, according to experts -- a stark contrast with
400 acres in the U.S.
But the trade dispute between the U.S. and China is giving
Beijing fresh motivation to make the country's farms more
efficient. China has imposed tariffs on American soybeans, wheat
and other crops in retaliation for U.S. tariffs on Chinese goods,
making those imported crops more expensive and highlighting the
country's dependence on foreign growers.
"The trade war is definitely adding pressure and adding
scrutiny," said Even Rogers Pay, an agriculture analyst at
Beijing-based research firm China Policy. "Top officials in the
[Communist] Party are particularly paying attention to
agriculture."
In August, a month after both countries' tariffs took effect,
China's Ministry of Agriculture and Rural Affairs said it would
build 254 "strong agricultural industrial towns" as models for the
country.
President Xi Jinping toured large-scale farms in fertile
northeastern Heilongjiang province in September to drive home the
message that increased domestic production of staple foods such as
grain can help bolster China's economy amid the trade war.
"Unilateralism and trade protectionism are rising, forcing us to
take the road of self reliance," Mr. Xi said, according to official
state media. "This is not a bad thing. China ultimately depends on
itself."
Chinese officials have long called for modernizing agriculture,
and consolidating farms and expanding use of modern machinery have
boosted production in some areas. China now exports some
agricultural products, such as rice.
But the effect has been limited -- the yield per hectare for
soybeans in the U.S. is nearly double that in China, according to
United Nations data.
The limited effect is in part because Beijing wants to maintain
social stability at all costs and large-scale mechanized farming
would likely eliminate many jobs in rural areas, where resistance
to change has been strong.
The state retains ownership of all land in China, and farmers
merely have the right to use it, which makes farmers less willing
to make long-term investments.
At the same time, it can be risky for farmers to rent their
land-use rights to others, which is one potential route to
consolidation. Sometimes they can secure a job on the farm as part
of a deal, or get local subsidies. Yet often such concessions
aren't enough and they end up roving from place to place looking
for migrant work.
Now, however, China's slowing economy has led the government to
target rural areas for development as options dwindle in heavily
built-up cities.
In September, China's cabinet, the State Council, unveiled a
five-year plan to raise farm productivity and increase rural
incomes, among other goals. Upgrading farm machine and equipment is
one of the 10 goals in a separate "Made in China 2025" plan.
Many experts believe the government is likely to lift China's
ban on genetically modified seeds following last year's $43 billion
acquisition of Swiss seed company Syngenta by state-owned
enterprise ChemChina. That could make it easier for farmers to
boost crop yields.
And China's aging population is increasing the pressure to
modernize the sector, as many young Chinese people don't want to
work in agriculture, in part because inefficient operations keep
farm incomes low, said Colin Carter, a University of California,
Davis professor who studies China's agricultural development.
"There's a saying for Chinese kids, 'You'd better study hard, or
else you'll end up working in the fields,'" said Liu Jiahuan, 25, a
graduate student in agriculture who is doing research in the Dahan
Village area of Yangxin County.
In September, China said it would partner with Asian Development
Bank to provide $6 billion of loans, grants and equity investments
to fund a checklist of development projects in rural areas,
including modernizing agriculture.
Yangxin County, in China's coastal Shandong province,
illustrates both the past and possible future of Chinese
agriculture.
While Ms. Wei and others like her still work small plots of land
-- generally an acre or less, about the size of a football field --
Zhang Fengxia cobbled together an 8,200-acre wheat-and-corn farming
operation by leasing land-use rights, a process that accelerated in
2014.
Ms. Zhang said her crop yields have risen 43% over the past four
years. Scaling up allowed her to invest in modern farming
equipment, including planting machines and pesticide-spraying
drones. She distributes a portion of profits to farmers who
provided the land.
"If we're successful, then I hope others can copy our model in
the rest of the country," Ms. Zhang said.
--Lin Zhu and Fanfan Wang contributed to this article.
Write to Dominique Fong at Dominique.Fong@wsj.com
(END) Dow Jones Newswires
November 18, 2018 12:14 ET (17:14 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.