Central China's Henan Province, whose grain output accounts for 10 percent of the country's total, has planned to expand its sown area to 9.22 million hectares this year.

The sown area will be increased by 73,300 ha. compared with the figure of 2005, the provincial source said.

As China's most populous province and one of the major agricultural bases, Henan produces about a quarter of the country's wheat. Its grain output exceeded 45 million tons in 2005 for the first time in history.

Local observers attributed the increase of the sown area to the exemption of agricultural taxes and relatively high agricultural returns.

In 2005, Henan made farmers exempt from all agricultural taxes, cutting about 2.92 billion yuan (about 365 million U.S. dollars) in tax burdens of its 70 million farmers.

The province also directly subsidized its farmers' purchases of fine seeds and agricultural machinery, thus further fueling their enthusiasm to plant more grain, said the report.

To restore farmers' enthusiasm for growing grain after years of decline in price and output, the Chinese government has implemented a series of policies to support agriculture and bolster the rural economy, including direct subsidies to farmers who grow grain and buy fine seeds and agricultural machinery.

Source: Xinhua