The Development of Agriculture and Irrigation & Drainage in China China Irrigation &Drainage Development Center July 28 2012

Outline 1 Development of agriculture in China 2　Irrigation District is the main base of national food production 3　Irrigation & drainage development strategy and action plan

Importance of food security Strategic position of food security 1　Development of agriculture in China Importance of food security China is a biggest country with more than 1.3 billion population and maximum food consumption. Grain output in 2010 Grain demand in 2020 Food production：546.4 billion kg （408 kg/per capita） Livestock production：meat 79.25 million tons, Aquatic product 53.66 million tons, egg 27.65 million tons, milk 35.7 million tons Vegetable and fruit：vegetable 640 million tons（477 kg/person ）, fruit 190 million tons（142 kg/person ） Staple food consumption: 223.2 billion kg, accounting for 39.5％ Feeding stuff consumption: 242.6 billion kg, taking 43% Other use of grain : 99.2 billion kg, accounting for 17.5% Strategic position of food security 胡锦涛总书记：“粮食安全事关重大，需万分重视，精心调控” President Hu Jintao : “Food security is very essential, needing extremely attention with careful control.” 温家宝总理：“13亿人口的吃饭问题始终是我国一件头等重要的大事” Premier Wen Jiabao : “It is always the most important thing in our country to feed 1.3 billion people.” １

Problems and challenges Development of agriculture in China The basic trend of China's grain supply and demand in the short and medium term Arable land and water are the material base of agricultural production 1 Supply capacity：In the future, food supply could not march the demand in our country 2 Supply and demand： China will enter a new food consumption stage in which grain consumption growth will not be the main trend 3 Arable land reduction and water shortage： With the acceleration of China's industrialization and urbanization, the trend of population growth, reduction of arable land and water shortage is irreversible. With the rise of living standard, the demand of meat ,egg, milk and vegetables will be increased continually Arable land resource：Arable land in China is about 1.82 billion mu (1.36mu/per capita). The quality of arable land is generally low. Water resource：The annual volume of water for industrial and agricultural use nationwide is 560 billion m3. Water for agriculture ：The annual margin of water for agriculture use is 30 billion m3. Development of agriculture in China The only way to increase food production capacity is the improvement of efficiency----improvement of yield per unit area, water use efficiency as well as water conservancy. １

2 Irrigation District is the main base of national food production Role of irrigation area in food production China has fed 20% of the world's population successfully with only 6% of the world's water resource and 9% of arable land . Irrigated agriculture plays an important role. The grain output of irrigation area accounts for 75% of national output, while its cash crops output is more than 90% of the national total. The irrigation areas in 13 major grain-producing provinces reaches 565 million mu , taking 68% of the national total. The annual grain output of the irrigation area accounts for 75% of the total , taking 88% of the total grain export (2007). Irrigation project（until 2010） The effective irrigated area is close to 900 million mu, taking 49% of the total arable area. There are 434 Large-scale irrigation districts (larger than 300,000 mu) with 237 million mu irrigated area, taking 28% of the total irrigated area. There are more than 1500 major medium-sized irrigation districts (bigger than 50,000 mu) with 159 million mu, accounting for 19%. There are 450 Large-scale pumping stations with more than 5200 pumps, within total installed capacity of 5.63 million kw and total water flow of 35880m3/s. 3

3 Irrigation and drainage development strategy and action plan The policy of the central government Giving priority to water conservancy in national infrastructure construction, while taking irrigation and drainage as the key task in rural development, speeding up irrigation district improvement and water saving irrigation to increase the capacity of agricultural production to ensure national food security The investment policy: The average annual investment in the next ten years will be double that of 2010 Institutional improvement: Encouraging the self- reliance of farmers, arising farmers’ initiative with financial award Master plan: Ministry of Water Resources is making irrigation and drainage development plan Project construction and technology innovation: Ministry of Water Resources is making irrigation and drainage development plan Achievement of the implementation By 2015, national effective irrigation area will be expected to reach 940 million mu, and the efficiency of water use for irrigation will be increased from current 0.5 to 0.53. By 2020, national effective irrigation area will be expectedly to reach 980-1000 million mu, and the efficiency of water use for irrigation will reached 0.55. Comprehensive grain production capacity will be increased to more than 550 billion kg. ４

Institutional improvement 3　Irrigation and drainage development strategy and action plan The investment policy ■ Government investment will take the big proportion. Farmers voluntary input will be the basis. Other social investment will be the complement. ■ 10% of land revenue will be used in Irrigation and drainage system (about 60-80 billion yuan each year). ■ Improving the management of the foundation for water works through extending its collection period, broadening its sources and increasing its revenue. ■ Farm machinery purchase subsidy. ■ Using the finance discount to support the policy financing. ■ Adjusting price for water resources fees, expanding collection scope with strict management. ■ Encouraging banks to further increase credit funds for the construction of irrigation and drainage infrastructures. ■ Encouraging local government to create financing platform to attract companies to invest in water conservancy. Institutional improvement ■ Accelerating the reform of the water conservancy construction and management system ■ Ensuring the funds for basic costs and maintenance. ■ Improving the primary-level water service system, identifying the position of the grassroots staff and integrating their salary into the finance budget at the county level. ■ Develop farmer’s water using cooperative organizations. ■ Reforming water pricing system: Costs of construction, operation and maintenance of I&D projects should get financial subsidy properly. Clarifying the basic price for the water use quota and higher price for the above-norm. 5

Aims of implementation 3　Irrigation and drainage development strategy and action plan Plans ■ 《 National water-saving irrigation development plan 》. ■ 《 National large-scale irrigation districts water-saving and reforming plan 》. ■ 《Key medium-sized irrigation districts water-saving and reforming plan 》. ■ 《 National small water conservancy construction plan 》. ■ 《 National small-scale pumping station improvement plan 》. ■ 《 National irrigation improvement in pastoral area development plan 》 Aims of implementation ■ By 2020, projects on water saving and irrigation districts reform should be primarily completed in large and key medium-sized irrigation districts. ■ Building a number of new irrigation districts in the regions where there are abundant land and water resources for increasing effective irrigated areas. ■ Accelerating the improvement of large and medium-sized irrigation & drainage pumping stations. Strengthening the improvement of key water-logging areas. improve irrigation and drainage system. 6

3 Irrigation and drainage development strategy and action plan Project construction and technology innovation Improvement of irrigation system in counties Accelerating the improvement of irrigation system in key counties. giving high priority to high grain-producing counties. improving the construction of the field canal system. promoting the construction with high standard. (2) Small and medium-sized water facilities improvement Improving five kinds of small water facilities in hilly areas, such as small pool, small water cellar, small pond, small pump station and small canal. (3) Develop highly efficient irrigation technology developing highly efficient water-saving irrigation, spreading the technologies of canal lining, pipe-irrigation, sprinkler and drip irrigation. By 2020, water saving irrigation area will be 760 million mu, in which high-efficiency water saving irrigation area taking 37%. Water saving irrigation in pasture area Developing water conservancy to set up high efficient water saving irrigation in pasture area (5) Large and medium-sized districts upgrading The improvement of 434 large-scale irrigation districts and more than 1500 key medium-scale irrigation districts will primarily be completed by 2020, in which, 268 large-scale irrigation districts and 666 key medium-scale irrigation districts in main grain-producing regions should be particularly completed in a higher speed. (6) Large size pumping station upgrading Improvement projects will be carried out in northwest areas of Yellow River basin, in northeast areas with water-logging problems, in north part of Huai River basin, in middle and lower reaches of Yangtze river basin and in lakeshore regions. 7

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