China's Extension System

In the early 1980s, China's leaders opened the door to greater international trade and initiated dramatic reforms to improve the performance of the economy. Reforms in the rural economy led the way for the rest of the country and rural output expanded rapidly. Since China has limited arable land, future agricultural growth depends on improving crop yields. Factors affecting demand and supply conditions in China should be a prime concern for U.S. agricultural interests. In the coming decade, China's leaders plan to improve the transfer of technology by using technical contracts.

By the end of 1990, 25% of cultivated area in the country was under technical contract.1 Technical contracts are made between farmers and village economic cooperatives and a wide variety of offices and technical personnel from different administrative levels such as township and county extension stations, local agricultural technical schools, and agricultural colleges. It's common for a county technical group to sign extension contracts with villages or farm families. The technical group often is headed by a party (government) leader and includes members from the extension station, the supply and marketing cooperative, finance bureau, Agricultural Bank, and the local insurance company. Press articles currently highlight the advantages of the technical group because group leaders can use their political-administrative authority to ensure the proper input supplies are delivered on time to farms to complement the technical advice.2

In the 1980s, some common techniques extended to farmers through contracts included assistance for grain crops such as proper sequencing of fertilizer applications for rice, ways to cultivate wheat under irrigated conditions, use of biological techniques to control insects damaging corn crops, use of plastic film, and pesticide application. In the 1990s, extension workers want to promote technology for fruit, vegetable, and cash crops; for animal husbandry (dairy, poultry, rabbit, and hog production); and aquatic output. In addition, they want to expand technical services for rural industry and food and livestock product processing.

The general policy governing compensation is that those receiving benefits should pay. A part of the increased production or income stemming from the addition of technology is returned to the technical contract service group. Where profits are relatively low from raising grain, oilseeds, and cotton but social benefits are high, such as cheap and plentiful supplies for urban residents, funds are taken from the profits of economic departments to pay the technical contract service fees. In areas of China where rural enterprises are well-developed, cadres can pay the service fee from the "industry to support agricultural" fund, which is supported from profits of rural enterprises. In areas where specific extension item contracts are used, then 10% to 20% of the increase in revenues serves as payment for service fees. In poor areas, fees can be obtained from county government's finance bureaus. Where specific extension item contracts are used for highly profitable economic crops such as vegetables and melons, we obtain the fees directly from farmers receiving the help. In Jilin province, some contracts specify payments for technical services be linked to increases in economic returns. If the output and economic returns can't reach the prescribed figures, the scientists (extension administration) have to make up the losses.3

The rapid expansion of technical contracts in China reflects fundamental changes in the rural economic system. Before reforms were initiated in 1979, agricultural extension programs were pushed by government administrators. After reforms began, farm families developed a keen interest in boosting output and reducing costs. Before the reforms, individual farmers had little incentive to learn new production techniques; after reforms, they hounded agricultural specialists for help. Agricultural technical contracts likely will accelerate the spread of technology, boost output, and change supply and demand conditions in China, which will affect U.S. agricultural trade.

1. Yang Zhaobo and Yuan Jun, "Technology Market Reaches Rural Areas," Xinhua, April 28, 1991, pp. 50-51.

2. Wang Mingyong, "Success Reported in Rural Technical Contracts Province Wide: 12,000 Contractors Have Gone Down to the Countryside, 13 Million Mu of Land Is Under Contract, and the Value of Output Has Risen 121 Million Yuan," Anhui Ribao, December 20, 1990.

3. "Scientists Help Boost Jilin Agriculture," Xinhua in English, Beijing, December 22, 1990.