China has brought out a new ruling that will funnel more money
into the development of farmland. This new financial input will
come from the money the government takes from the sale of land-use
rights between private groups or farmers.
Published by the Ministries of Finance and of Land and
Resources, the rule stipulates that no less than 15 percent of the
average net profit from the transfer of land-use rights be ploughed
back into rural development. In the past three years, the
authorities have received more than 900 billion yuan, or around
US$110 billion, from land-use transfers. In some areas, this
payment, which is similar to a tax, accounts for nearly half of
local revenue. The State Council is urging local governments to use
the money to improve agricultural production and develop unused
land, as well as other measures to improve farmland.
(CCTV August 12, 2004)