China Overhauls Agricultural Subsidies

By staff reporter Chang Hongxiao and intern reporter Zhang Yanling

(.com.cn) China has recently altered its subsidy program for agricultural production materials in response to the 2009 price plunge for chemical fertilizers and diesel oil. According to the new plan, subsidies for each farmer are a function of the fluctuating market prices of agricultural equipment and grain, as well as cultivated land area. They will not be lowered by a fall in the price of equipment, providing an incentive for farmers to grow grain.