History of Agriculture in The People's Republic of China - Since 1949

Since 1949

Since 1949 China's political leaders have tried a variety of large-scale social experiments to boost agricultural production. First, a massive land reform program eliminated landlords and gave land to those who farmed it. Next, farm families were progressively organized into cooperatives, collectives, and finally people's communes. After more than twenty-five years of experience with communes, officials abolished these institutions, which had become too bureaucratic and rigid to respond to the flexible requirements of agricultural production. Also, farm production incentives languished in the commune system. In 1978 China's leaders began a program of far-reaching agricultural reforms. Townships and villages were organized, and new incentives were incorporated into contractual relationships tying farmers to economic cooperatives and businesses.

Since the revolution in 1949, China has devoted most of its investments and administrative energy to the industrial sector. Generally, the agricultural sector received special attention only when the leaders perceived that the sector was beginning to restrain China's overall economic development. Agricultural output basically kept pace with the growth of population but did not expand fast enough to raise living standards. Per capita consumption of grains, fibers, edible oil, sugar, fruits, vegetables, fish, meat, eggs, and dairy products remained low. The value of goods generated by the agricultural sector has grown, but not as fast as output generated by other sectors in the economy. In 1949 about half of the country's output came from the agricultural sector. This ratio dropped to 41 percent by 1955, declined to 31 percent by 1965, and fell another few percentage points in 1975 to 25 percent. But agricultural reforms initiated in the early 1980s brought a rise in agriculture to 33 percent of GDP in 1985. At the same time, more than 60 percent of the national labor force was employed in agriculture.

China in the late 1980s was thus poised to confront growing demands for agricultural production with a combination of time-tested farming methods and modern agro-technology. The size and diversity of the country - in geography and in population - however, had presented a unique challenge to China's policy makers and implementors.