Strengthen supervision to protect farmers' interests

The National Audit Office has recently reported to the top legislature some issues regarding rural investment it identified in 2023.

According to its report, 58 counties urged social capital entities to fulfill their obligations of paying overdue land transfer fees and dividends to farmers, totaling 111 million yuan ($15.2 million).

Due to the lack of standardized management, farmers are often kept in the dark about their dividends while it is often they that sustain the investment risks.

For example, some enterprises, after enjoying agricultural support policies, tend to reduce investments or divert subsidy funds for other uses. In some places, the mechanisms designed to pay farmers are either flawed or too cumbersome, resulting in prolonged fund disbursement cycles.

Local governments need to improve their management mechanisms, enhance the efficiency and benefits of agricultural production and increase the income of enterprises, village collectives and the public, forming a relatively close community of interests.

Rural industries have a bright future but they also involve heavy investment, long cycles, slow returns and low profits.

Therefore, when introducing social capital into rural areas, it is crucial to avoid the mindset of merely seeking policy benefits and instead adopt a strategy of planning before acting and knowing when to stop to achieve gains. That is conducive to realizing a win-win situation for both enterprises and the agricultural sector, and achieving both economic and social benefits.

ECONOMIC DAILY