Circular on the issuance of the Work Programme on Expanding Current Investment in Agricultural and Rural Infrastructure Construction

Department of Agriculture and Rural (Agriculture and Animal Husbandry, Animal Husbandry and Veterinary, Fishery) (Bureau and Commission), Department of Water Conservancy (Water Affairs) (Bureau), Development and Reform Commission, Department of Finance (Bureau), Department of Natural Resources (Ocean) (Bureau and Commission), Department of Commerce (Bureau and Commission), People's Bank of China Shanghai Headquarters, branches, business management departments, provincial capital city central branch, sub-provincial city central branch, banking and insurance regulatory bureaus:

        Strengthening agricultural and rural infrastructure is a key task for expanding effective investment and stabilizing the broader economy. It will help enhance our ability to ensure food supply, promote the development of basic industries, and smooth the economic cycle between urban and rural areas. It is of long-term importance and realistic urgency. On September 21, the Executive meeting of The State Council deliberated and adopted the "Work Program on Expanding Current Investment in Agricultural and Rural Infrastructure Construction", which is hereby distributed to you. Please earnestly implement it.

Ministry of Agriculture and Rural Affairs

Ministry of Water Resources

National Development and Reform Commission

Ministry of Finance

Department of Natural Resources

Ministry of Commerce

People's Bank of China

China Banking and Insurance Regulatory Commission

September 30, 2022

Work programme on expanding current investment in agricultural and rural infrastructure construction

        Strengthening agricultural and rural infrastructure is a key task for expanding effective investment and stabilizing the broader economy. It will help enhance our ability to ensure food supply, promote the development of basic industries, and smooth the economic cycle between urban and rural areas. It is of long-term importance and realistic urgency. In order to accelerate the current construction of agricultural and rural infrastructure, the following work programs are formulated.

First. General requirements

         We will accelerate the progress of agricultural and rural infrastructure construction and form a physical workload as soon as possible to lay a solid foundation for ensuring supply and preventing inflation and stabilizing the economic market.

        In the promotion of work, first, we must reflect the speed, seize the favorable opportunity of autumn and winter farming, accelerate the progress of projects that have been started, the projects that have been approved to start, and the investment plans that have been issued to implement in place, concentrate time, gather resources and gather strength, accelerate construction, and ensure that the results within the year; Second, we should focus on key areas, focusing on irrigation areas and other water conservancy facilities to strengthen weaknesses and upgrade, repair agricultural facilities in disaster-stricken areas, and related to the consolidation and improvement of food production capacity and agricultural quality and efficiency projects, on the basis of completing the existing construction tasks, appropriately increase the amount of construction, promote production development, and improve rural people's livelihood; Third, we should innovate the mechanism, take the province as the unit, allow cross-city and cross-county bundling, adhere to the joint participation of diversified subjects in the construction, innovate the investment and financing mechanism of agricultural and rural infrastructure, and promote the linkage investment of government investment and financial and social capital to help agriculture and villages under the premise of not adding new hidden debts of local governments. Fourth, it is necessary to pay attention to actual results, strengthen the organization and implementation, in order to select accurate projects, establish project ledgers, ensure that they are completed as soon as possible and give full play to benefits, and form an investment driving effect.

Second, construction content

        From now until the end of the year, we will focus on the weaknesses of agricultural and rural infrastructure, and highlight the construction of water conservancy facilities such as large and medium-sized irrigation areas, small farmland water conservancy facilities, and modern facility agriculture and cold chain logistics facilities for agricultural products' storage and preservation, so as to ensure that construction starts as soon as possible and results as soon as possible.

(1) Construction, renovation and upgrading of irrigation areas and other water conservancy facilities. Irrigation area and other water conservancy facilities are an important basis for ensuring food security. This year's flood and drought disasters exposed the outstanding shortcomings of irrigation areas and other water conservancy facilities, and it is urgent to speed up the repair.

        First, construction and transformation of large and medium-sized irrigation areas. At present, the problem of aging and disrepair of irrigation district projects is prominent, which needs to be reformed and upgraded as soon as possible. We will promptly carry out the construction and modernization of a number of large and medium-sized irrigation areas, and build a number of large irrigation areas.

        The second is to strengthen the reservoir. We will strengthen the strengthening of small and medium-sized reservoirs, promptly eliminate potential security risks in reservoirs, and promptly restore and enhance the capacity of existing reservoirs to withstand drought and ensure water supply and agricultural production. According to the "14th Five-Year Plan" reservoir reinforcement implementation Plan approved by The State Council, a number of large and medium-sized reservoirs and small reservoirs will be strengthened before the end of this year.

        Third, capacity building for flood drainage. In view of the frequent disasters in key waterlogging areas such as the Yangtze River and Songhua River basins, which affect national food security, and the urgent need for control, key waterlogging areas such as the Hanjiang Plain in Hubei Province and Dongting Lake in Hunan Province, key waterlogging prone areas in Anhui and Jiangxi Province, and low-lying areas in Songnen Plain and Sanjiang Plain have been put under control, and the key project for control of the waterlogging areas in Liaoning Province has been accelerated. We will promptly implement a number of projects to build capacity for flood drainage.

        Fourth, small and medium-sized water source projects. We will build a number of small and medium-sized water source projects, improve the level of water security for agricultural irrigation, effectively solve the problem of water scarcity, and enhance the ability to withstand drought. We will focus on implementing a number of medium-sized and small reservoirs and water diversion projects.

        Fifth, other rural water conservancy infrastructure. We will improve the dredging of rural rivers and ponds, connect and comprehensively improve rural water systems, control soil erosion on sloping farmland, build silting DAMS, and prevent and control mountain floods. We will do a good job in maintaining and maintaining rural water conservancy facilities, and carry out a number of other rural water conservancy infrastructure projects to further consolidate the foundation of water conservancy for agricultural and rural development.

(2) Making up for weaknesses in farmland water conservancy facilities. In view of the weak farmland infrastructure, especially the lack of field water conservancy facilities, we will strengthen the water conservancy facilities in high-standard farmland project areas to make up for shortcomings, and improve the ability of farmland to resist drought and flood, prevent damage and reduce disaster. In accordance with the requirements of comprehensive control of drought, waterlogging and damage, we will vigorously carry out the construction of farmland irrigation and drainage facilities, focusing on the construction and supporting renovation of farmland canals, agricultural canals and other transmission and distribution channels (pipes) and drainage ditches (pipes), pumping stations, storage facilities, culverts and other canal system buildings. Construction of efficient water-saving irrigation facilities in accordance with local conditions. Supporting the construction of field leveling, field roads, agricultural electricity facilities, and farmland protection projects will be carried out to give full play to the overall benefits of infrastructure. A number of projects to make up for weaknesses in farmland water conservancy facilities began ahead of schedule this winter.

(3). Building modern facility agriculture. Facility agriculture is an important way to improve resource utilization and increase food supply capacity. At present, the scale of facility agriculture in China is small and the overall level of facilities and equipment is low, which affects the output and efficiency, and it is necessary to speed up the transformation and improve the level and ask for food from facility agriculture.

        One is facility planting. A new number of facilities vegetable greenhouse greenhouses, make up for the short board of raising seedlings. Focus on the advantage areas of facility vegetables, and build and upgrade modern facility vegetable bases in a centralized or multi-garden way, including the construction of a number of high-end production facilities such as year-round production, three-dimensional planting, intelligent regulation and multi-greenhouse and plant factories. A number of centralized rice seedling rearing centers will be built in 10 provinces in the double-cropping rice region in southern China, and a number of regional intensive seedling rearing centers will be built in areas with advantages in facility vegetables.

        Second, facility animal husbandry. Construction and upgrading of large-scale farms, livestock and poultry slaughterhouses. Focusing on the three major livestock breeds of dairy cows, beef cattle and poultry, we will build or expand a number of large dairy farms with a focus on building high-standard breeding enclosures, equipped with intelligent environmental control facilities such as waste cleaning and utilization, and digital equipment such as automatic milking. Focusing on major beef cattle producing areas and potential areas, we will build a number of standardized beef cattle farms, focusing on supporting the construction of mechanized feed collection, storage and processing, precise feeding and intelligent information control. With the focus on the main poultry producing areas and potential areas, a number of three-dimensional and efficient poultry facilities will be built. Build or expand a number of livestock slaughterhouses, supporting refrigeration and fresh-keeping, inspection and quarantine facilities, and improve livestock slaughtering and processing capacity.

        Third, facility fishery. We will build Marine pastures and central fishing ports, and upgrade aquaculture facilities and equipment. In Liaoning, Shandong, Zhejiang, Fujian, Hainan and other places to build a number of Marine pastures, including artificial fish reefs, species (transfer) planting restoration, Marine pasture monitoring facilities, seedling breeding facilities. In coastal areas, a number of fishing port economic zones, central fishing ports and ocean-going fishing bases will be built, including water and land structures such as breakwaters, wharves, revealments and roads in port areas, as well as aquatic product trading, processing and logistics facilities. In key aquaculture provinces, a number of high-standard aquaculture parks, factory aquaculture facilities, and far-reaching Marine aquaculture equipment will be built, and core pond water purification projects and supporting projects, seedling breeding and aquaculture workshops, circulating water aquaculture equipment, precise feeding and intelligent information control facilities and equipment, trussed deep-water cages and aquaculture workers' boats will be improved.

(4) Construction of cold chain logistics facilities for storage and preservation of agricultural products. At present, the low-temperature treatment rates of fruits and vegetables, meat and aquatic products are only 11%, 52% and 54%, respectively, and the postpartum loss rate of fruits and vegetables exceeds 20%. Based on the reasonable and centralized construction of cold storage facilities in accordance with actual needs, the project will drive the whole province, the whole city and the whole county to accelerate the improvement of the node layout, service network and support system of cold chain logistics facilities in agricultural production areas, integrate into the national cold chain logistics backbone channel network, and achieve loss reduction and efficiency and smooth sales.

        First, the origin of refrigeration and preservation facilities. In key towns and central villages, promote the construction of a number of small field cold storage facilities, increase the storage capacity of production areas, and build a solid foundation of cold chain logistics facilities network.

        The second is the origin of cold chain distribution center. In the important circulation nodes of producing areas, promote the construction of a number of cold chain distribution centers with storage and preservation, primary processing, and cold chain distribution capabilities, and form a comprehensive service platform for supporting agricultural products.

        Third, regional cold chain logistics base. Relying on the national agricultural products producing area market, large agricultural products trading center, large logistics park, agricultural reclamation enterprise group and other subjects, the construction of a number of regional cold chain logistics bases with the ability to lead the industry, radiate urban and rural areas and "vegetable basket" emergency supply.

        The fourth is the on-site processing of aquatic products and cold chain logistics facilities and equipment. In coastal areas such as Guangdong and Fujian, and in major inland aquaculture provinces such as Hunan and Jiangxi, China has built a number of facilities and equipment for on-site processing of aquatic products and cold-chain logistics, supporting the processing of key varieties such as freshwater fish and crayfish, the production of prepared vegetables, and the production of Marine food and functional products.

Third. Investment and financing mechanisms

        (1) In the construction of the main body, encourage qualified market players to participate in the construction. Qualified relevant market entities can participate in the construction of major agricultural, rural and water conservancy infrastructure projects in accordance with laws and regulations and procedures, undertake financial subsidies and investment funds, apply for credit funds, borrow and return, promote the bundling and overall implementation of scattered projects, and achieve project construction upgrading and expansion, centralized contiguity, and overall development.

        (2) In raising funds, promote the linkage between government investment and financial credit and lending. For major projects carried out by market players, local governments are encouraged to adopt a variety of ways that meet the requirements of regulations, and focus on supporting the construction of a number of modern agricultural and rural infrastructure. We will promote the linkage between government investment and financial credit investment and lending for qualified projects, so that financial credit funds can be better landed. At the same time, we will strengthen supervision to avoid local financial risks and debt risks.

        (3) In the mode of operation, encourage social capital to cooperate in the construction and operation of agricultural and rural infrastructure investment projects. For agricultural and rural infrastructure projects with a high degree of marketization, such as facility agriculture and cold chain logistics, local governments are encouraged to actively explore effective and safe ways to strengthen cooperation with private capital investment, give full play to the advantages of social capital market operation, reduce the pressure on social capital to invest heavily in assets, and promote positive interaction between investment and development.

        (4) In terms of repayment sources, establish stable and diversified loan repayment channels. Based on the production and operation income formed after the completion of the project, through the project bundling construction and operation, the overall construction of diversified repayment channels to achieve self-balance and sustainable project income, so as to achieve long-term stable management of the project subject.

Fourth, safeguard measures

        (1). Strengthening overall planning and coordination Agricultural and rural departments and water conservancy departments should strengthen communication and coordination with relevant departments, docking with relevant financial institutions, establishing a coordinated promotion mechanism, strengthening the guarantee of project implementation land, environmental assessment and other factors, consolidating responsibilities at various levels, and promoting the implementation of items.

        (2). Strengthening policy support. For eligible agricultural and rural infrastructure construction projects, policy-oriented development financial instruments will actively support them. We will increase credit support for agricultural and rural infrastructure, strengthen commercial loan support, and encourage policy-oriented development banks to provide credit support for agricultural and rural infrastructure-related projects within their business scope based on their functional positioning. Encourage eligible places to explore ways to support the construction of modern facility agriculture through discounted interest, and give priority to ensuring land targets for the construction of agricultural and water conservancy facilities. Under the premise of strengthened supervision by government departments, controllable risks and moderate competition, market entities such as agricultural and water conservancy investment enterprises are allowed to act as project entities and undertake high-standard farmland construction projects in accordance with relevant national laws and regulations. We will accelerate comprehensive pricing reform for water used in agriculture.

        (3). Strengthen guidance services. Formulate project implementation plans by field, speed up the preliminary work of projects such as planning, project approval, bidding and bidding, so that the project can be started as soon as the funds arrive. We will deepen the reform of "delegating control services", optimize the project approval process in accordance with the law, and encourage local governments to trial a commitment system for investment approval matters such as land use and environmental assessment in accordance with their duties and powers, so as to improve the efficiency of approval. Encourage financial institutions and project units to strengthen docking, one-to-one sorting out and improving project financing plans, to achieve accurate credit funds. Strictly implement the safety responsibility to ensure safe construction.

        (4). Strengthen supervision and inspection. Make a list of construction projects by field, establish a work ledger, regularly dispatch the progress of work, timely report the completion of tasks, and urge the construction body to speed up the construction progress. For key regions and key projects, timely field guidance and supervision are carried out to help solve difficulties and problems in the implementation of projects, and ensure that the projects are fully implemented. Summarize and refine projects with typical and promotional value to form replicable cases and models.

Information source: http://www.moa.gov.cn/govpublic/CWS/202210/t20221025_6413941.htm