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Home >> Business
UPDATED: 14:20, June 25, 2004
China: 1 billion US dollars to restore land
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The Chinese government has earmarked an agricultural fund worth 8.9 billion yuan, or more than 1 billion US dollars to help farmers improve their working conditions. Wu Hanying examines how farmers in southwest China's Sichuan Province are benefiting from the policy.

Local Village Leader Wei Deyuan said, "Good Work, Hurry Up. We won't have to fear drought or floods anymore."

They are busy with their new irrigation system. People in the village, some 60 kilometers from Chengdu have been struggling with droughts and floods for generations. This year, the central government has allocated a 1-million yuan fund for the construction of an irrigation system in the village.

Government officials say 30 million farmers in China this year will see their income increased. And grain production should rise by 7 billion kilograms. In the past five years, farmers' per capita income rose by an average 4 percent each year, considerably less than the 8 percent rise for city dwellers. Farmers in a number of areas have complained they just can't make enough money planting grain. This has raised fears of a potential threat to the country's food safety. The central government has now issued new policies to favor grain producers. And government has announced it will abolish agriculture taxes in five years.

Source: CCTV News

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