High production costs and the government’s protective policies on grain prices have pushed the price of China’s agricultural products higher than that of international markets, which is a sign of Chinese agriculture lacking competitive strength, said Zhang Yunhua, a researcher at the Development Research Center of the State Council, according to Sike.com, an opinion site run by Xinhua News Agency.
Zhang said that the labor and land costs of China's agriculture are notably higher than that of the US. Even though overall agricultural costs in China are higher than in the US, he added, the latter invests more in the means of production. This shows that the US has a much higher level of mechanization in agricultural production, he said.
To improve agricultural efficiency, Zhang suggested China use agricultural resources in a more efficient manner, mechanize the process of agricultural production and encourage private capital to invest in R&D.
In the meantime, he said, the government should also make preparations for the parts of the rural labor force made redundant by improved agricultural efficiency. While continuous urbanization is expected to absorb millions more workers from the countryside, he said, the government should work to create a fair and reasonable social security system and make sure rural migrants properly settle down in cities.
While agriculture is being increasingly marginalized as a profession, Zhang noted, its rapid modernization in the future would require the government to nurture a capable team of professional farmers.
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