BEIJING - China's central authorities on Wednesday said the nation will continue to step up investment and subsidies for agriculture this year in order to stabilize grain production.
A document publicized Wednesday by the Central Committee of the Communist Party of China (CPC) and the State Council, or China's cabinet, said that the country will continue to expand its fiscal budget for agriculture in 2012 and direct more of the country's fixed-asset investment toward the sector.
The document also said the country will boost investment in agricultural science and technology. It said the government should play a leading role in investment for agricultural science and ensure that the investment will create "significantly" faster growth compared to fiscal revenues.
The country will also offer more subsidies for major grain-producing areas and farming cooperatives, with direct subsidies for farmers to be increased, the document said.
It said the country would further improve the output capacity of China's 800 major grain-producing counties and support the building of production bases for vegetables, cotton, edible oil crops, and sugar.
Government data showed China's grain output rose to a record high of 571.21 million tonnes in 2011. The figure represented a year-on-year increase of 4.5 percent and marked the eighth consecutive year of growth for the country's grain output.
However, the document warned the Party should remain clear-minded despite the achievements as the current severe and complicated situation of the world economy and the impact of climate change pose risks and uncertainties to the nation's agricultural development.
Meanwhile, the shortage of arable land and fresh water present challenges to the sector, the document said.
According to the government paper, efforts will be further made to stabilize the raising of live pigs, as a scarcity of pork last year pushed up inflation.
The country will encourage banks to step up lending to the rural regions and support commercial banks to set up township outlets. It will continue to support micro-credit businesses to farmers while encouraging banks and rural credit cooperatives to extend more credit to small and micro-sized firms in the counties.
source: www.chinadaily.com.cn
Growth Green Agriculture Plc is a UK based agricultural investments company specialising in emerging markets offering unique opportunities to invest in Ghana. GGAgriculture acts as consultant on green and socially responsible investments to the private and institutional investor community in Europe. http://ggagriculture.com/
Tuesday, 21 February 2012
Wednesday, 15 February 2012
GGAgriculture | Making the most of agricultural investment
A report published by the International Institute for Environment and Development (IIED) and commissioned by the Food and Agriculture Organization of the UN (FAO), the International Fund for Agricultural Development (IFAD) and the Swiss Agency for Development and Cooperation (SDC), explores the range of business models that can be used to structure agricultural investments in lower- and middle-income countries, and that provide an alternative to large-scale land acquisitions.
Making the most of agricultural investment: A survey of business models that provide opportunities for smallholders documents a range of more inclusive business models that can bring benefits to small-scale farmers and protect their land rights, while also ensuring returns to companies.
The report finds that any international guidance on agricultural investments should go beyond minimizing the possible negative impacts of large-scale land acquisitions, to also promote investment models that maximize opportunities for local smallholders. It further identifies a range of ways for big investors and local smallholders to collaborate that can be mutually beneficial. These options are discussed under six broad headings: contract farming, management contracts, tenant farming and sharecropping, joint ventures, farmer-owned business and upstream/downstream business links.
The report suggests that no single model emerges as the best possible option for smallholder farmers in all circumstances. In order to benefit smallholders, while still remaining attractive for investors, each specific context must take into account the local land tenure, policy, culture, history, and biophysical and demographic considerations.
There are many ways for companies to do business in more inclusive ways whilst minimizing risk and still turning a profit, the report concludes. This can mean closer working relationships with local partners, landholders and farmers, and more sharing of the value generated by the investments.
The report focuses on the way alternative business models can share value – in terms of risk, reward, ownership, and voice in influencing business decisions – between the investor and local partners. It analyses the advantages and disadvantages, opportunities and constraints, and options for scaling up each of these alternative business models.
According to the report, for more inclusive land agreements to work, companies need to embrace them as a genuine economic component of their business, and not just as part of a corporate responsibility programme. The report also states that action to strengthen the negotiating power of local farmers is crucial. Governments and development agencies can do much to promote fairer, more inclusive business models, and support smallholders in their relations with government and investors.
The report, co-authored by Lorenzo Cotula and Sonja Vermeulen, can be downloaded from the IIED website, and is also available on the IFAD website.
Source: www.un-ngls.org
Growth Green Agriculture Plc is a UK based agricultural investments company specialising in emerging markets offering unique opportunities to invest in Ghana. GGAgriculture acts as consultant on green and socially responsible investments to the private and institutional investor community in Europe. http://ggagriculture.com/
Making the most of agricultural investment: A survey of business models that provide opportunities for smallholders documents a range of more inclusive business models that can bring benefits to small-scale farmers and protect their land rights, while also ensuring returns to companies.
The report finds that any international guidance on agricultural investments should go beyond minimizing the possible negative impacts of large-scale land acquisitions, to also promote investment models that maximize opportunities for local smallholders. It further identifies a range of ways for big investors and local smallholders to collaborate that can be mutually beneficial. These options are discussed under six broad headings: contract farming, management contracts, tenant farming and sharecropping, joint ventures, farmer-owned business and upstream/downstream business links.
The report suggests that no single model emerges as the best possible option for smallholder farmers in all circumstances. In order to benefit smallholders, while still remaining attractive for investors, each specific context must take into account the local land tenure, policy, culture, history, and biophysical and demographic considerations.
There are many ways for companies to do business in more inclusive ways whilst minimizing risk and still turning a profit, the report concludes. This can mean closer working relationships with local partners, landholders and farmers, and more sharing of the value generated by the investments.
The report focuses on the way alternative business models can share value – in terms of risk, reward, ownership, and voice in influencing business decisions – between the investor and local partners. It analyses the advantages and disadvantages, opportunities and constraints, and options for scaling up each of these alternative business models.
According to the report, for more inclusive land agreements to work, companies need to embrace them as a genuine economic component of their business, and not just as part of a corporate responsibility programme. The report also states that action to strengthen the negotiating power of local farmers is crucial. Governments and development agencies can do much to promote fairer, more inclusive business models, and support smallholders in their relations with government and investors.
The report, co-authored by Lorenzo Cotula and Sonja Vermeulen, can be downloaded from the IIED website, and is also available on the IFAD website.
Source: www.un-ngls.org
Growth Green Agriculture Plc is a UK based agricultural investments company specialising in emerging markets offering unique opportunities to invest in Ghana. GGAgriculture acts as consultant on green and socially responsible investments to the private and institutional investor community in Europe. http://ggagriculture.com/
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