Tuesday, November 25, 2008

Farmer’s Property Rights in China

This is a very interesting article on the slowly changing situation in China, as the state keeps tinkering with how to improve production of agricultural resources while retaining the trust and good will of the farmers; and if it is emblematic of other changes in China, it is a very good thing.

An excerpt.

“The statistics are startling. The People’s Republic of China (PRC) constitutes 22 percent of the world’s population but only 7 percent of the world’s arable land. And 50 percent of that area has been severely eroded. Desertification is occurring in almost 30 percent of China and salinization affects 10 percent of the nation…

“The degradation of China’s agricultural lands— particularly those in the western provinces with their fragile soils and harsh climate—presents a multitude of issues. Environmentally, the rivers are choked with silt, the air is polluted by sand storms on top of motor vehicle exhausts and factory wastes, plants and animals are being pushed to extinction, and the western landscape has taken on a lunar quality. Socially, the livelihoods of millions of farming families are being jeopardized by diminishing productivity and an increasing frequency of natural disasters such as floods and mud slides. Politically, the pressure of dissatisfied, poor, rural households seeking to relocate to wealthier urban areas is unnerving to the Central Council of the PRC.

GRAIN FOR GREEN

“In recognition of these issues, in 1999 the Chinese Government instituted the Conversion of Cropland to Forest and Grassland Program (CCFGP) in an attempt to stabilize the soils of highly erodable areas. Under the program—often called the Grain for Green Program—farmers are paid a combination of cash and grain to plant tree seedlings or perennial grasses (provided free) on previously cropped or barren land.

“The program has been enthusiastically embraced by more than 15 million farm households across 25 provinces. Between 1999 and 2005, 55 million acres were converted. The Chinese government has budgeted US$43.6 billion for CCFGP and it is expected to increase forest and grassland areas by 93 million acres by 2010…

“What the CCFGP did for farmers was to provide an assured source of annual income in the period when the new land uses were being established and before they could yield readily accessible annual income streams. In essence, the program lowered the risks of land use change created by the insecure property rights.

“The message relating to property rights has not been lost on the Chinese government. One component of the CCFGP has been an extension to 70 years of the use rights farmers have over their outputs if they enroll in the program. In 2007, the annual meeting of the Central Council discussed the prospect of instituting private property rights over more intensively used agricultural land. Should this occur, the extent of the government’s budgetary commitment to the continuation of the CCFGP, and numerous other resource protection schemes (including the Shelterbelt Development Program and the Sand Control Program for Beijing and Tianjin) could be reduced while more environmental protection is being achieved.”