Recently, the Ministry of Finance and the Ministry of Agriculture have promulgated the Guiding Opinions on Adjusting and Improving the Three Agricultural Subsidy Policies (the "Opinions").
The Opinions focus on two aspects: the allocation of 20% comprehensive agricultural material subsidies for supporting the moderate scale operation of grains nationwide and the selection of certain areas as pilot zones for carrying out the reform of the Three Agricultural Subsidy Policies. To be specific, in the pilot zones, the Three Agricultural Subsidies shall be included in the Agricultural Support and Protection Subsidies, and the relevant target shall be adjusted to supporting the farmland productivity protection and the moderate scale operation of grains. 80% stock funds of comprehensive agricultural material subsidies plus direct subsidies for grain farmers and subsidies for improved varieties shall be used for protection of farmland productivity; as for the conversion of farmland and forest land that have been used as poultry farms into the infrastructure farmland and others, there shall be no subsidies; at the same time, the farmers shall be encouraged to enhance the agricultural ecological protection. In addition, 20% stock funds of comprehensive agricultural material subsidies plus subsidies for the large grain production households in the pilot zones and the incremental funds of the Three Agricultural Subsidies shall be used for supporting the moderate scale operation of grains in accordance with the unified requirements on the adjustment and improvement of policies.