China Protects and Promotes Grains and Key Crops Production

The State Council of China issued Guidelines on Establishing Grain Production Function Zone and Key Crop Production Protection Zone on April 10, 2017, to promote structural adjustment in the agriculture sector, raise agricultural products competitiveness, and promote agriculture modernization. The Guidelines call for establishing production function zones for rice, wheat, and corn, and establishing production protection zones for soy, cotton, rapeseed, sugar cane, and natural rubber. As supporting measures, the Guidelines call on the government to increase input in infrastructure and set up agriculture subsidy programs in the zones. The Guidelines also encourage financial institutions to increase credit loans for entities in the zones, and call on the government, banks, insurance companies, and guarantee institutions to cooperate together to provide agricultural product price and revenue insurances.