June 28, 2012

China to fund local farms' expansion

The official of China will generate a fund worth RMB38 billion (US$1.27 billion) by 2015 to improve water-efficient farms in northeast China's grain-producing areas.

The fund will be used to develop 38 million mu (2.53 million hectares) of water-efficient farmland in four northeastern regions, according to a work conference jointly held by the Ministry of Finance, the Ministry of Water Resources and the Ministry of Agriculture on Tuesday (June 22).

The four regions include Heilongjiang, Jilin and Liaoning provinces, as well as the Inner Mongolia autonomous region. The four areas together produce one-fifth of the country's grain.

The central budget will allocate RMB22.8 billion (US$3.59 billion), or 60% of the fund, while the rest of the money will be raised by local governments and farmers.

The funds will be used to promote efficient irrigation technology in the four regions over the next four years in an effort to ease water shortages and increase grain production.