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    No.1DocumentFuelsSeedIndustry ;

    ;Agriculturaltechnologybecomes ;akeywordofthisyear

    ;Agriculturaltechnologyhasbe

    ;comethekeywordsduringrecentag- ;riculturaldevelopments.ChenXiwen, ;directoroftheofficefortheCPCCen- ;tralCommittee’sLeadingGroupon

    ;Rural.rkemphasizedonmanydif-

    ;ferentoccasionsthatitisverydicult

    ;toincreasethegrainproductionsimply ;throughmorematerialinput.The ;importanceistomakeuseoftheavail- ;ableagriculturalresourcestoaccelerate ;institutionalreformandself-innovation ;oftheagriculturaltechnology,andraise ;thecontributionratiooftechnologyad

    ;vancementonagriculturalproduction. ;OnDec.26,2011,thedaybefore

    ;theCentralAgriculturalHDrking

    ;Meetingwasheld,theMinistryof ;Agricultureissuedthe”12thFive-Year

    ;PlanfortheFarmingTechnologyDe

    ;velopment’thesignificanceofwhichis

    ;immenselyprofound.

    ;1heNo.1Documentstatesthat

    ;toensurethestableandsustainable ;developmentofagriculture,andad

    ;equatesupplyofagriculturalproducts, ;thetechnologywouldbethefunda

    ;mentalwayout.The~rmingtechnol

    ;ogyconstitutesthebasisfornational ;grainsecurityandistheinevitable ;choiceforremovingtheobstaclesthat ;fettertheresourceandenvironment.It ;isthedrivingforcethatspeedsupthe ;buildingofmodernagriculture,being ;distinguishinglycharacterizedbyits

;publicserviceandsocialbasicfunc

    ;tions.

    ;ThedevelopmentChinesefarm

    ;ingindustryisindireneedofthe ;technologysupport.Therecentyears ;havewitnessedaworseningrestraint ;onarablelandsandwaterresources,as ;wellasanincreasingdemandongrains ;andothermajoragricukuralproducts, ;whichposedheavyburdensontheag- ;ricultura1development.Inthelongrun, ;Chinawillfaceashrinkingarable1and, ;transferoflaborforce,continuously ;highlaborandagriculturalproduction ;ByChinaSecuritiesJourna

    ;costs.~hereforeitisveryimportantto ;speedupthe~rmingtechnologycon

    ;structions.

    ;Someexpertssaythatthepurpose ;ofthe~rmingtechnologyinnovation ;istoraisethe~rmlandoutputcapacity, ;resourceutilizationefficiencyand1abor ;productivity,andputanequalfocuson ;raisingproductivityandefficiency,com

    ;bineseedenhancementandplanting ;methodimprovement,andagricultura1 ;machineryand~rmingprocess;thedi

    ;rectionistopromote~rmingtechnol

    ;ogyintegration,mechanizationofthe ;workingprocessandinformationbased

    ;productionandoperation,andcreate ;atechnologica1systemthatenhances ;productivity,qualityandefficiency, ;andprotecttheecologicalenvironment ;andproductionsecurity.Thebreak_ ;throughpointoftechnologyinnovation ;liesinthecloseattentiontofront-line ;technology,thesatisfactionofindustry ;s

    ;demands,aswellasacombinationof ;researchandproduction.Theresearch ;staffshal1dotheirthesispapersduring ;neldpracticesandsharetheachieved ;accomplishmentswithcommonfarm

;ers,toclosethegapbetweentechnol

    ;ogyandrealproduction.

    ;Underresourceconstraint,the ;developmentofagriculturaltechnology ;willfirstrelrontheincreaseofproduc

    ;tionperunit.Itispredictedthatthe ;seedandfarmingmachineryindustries ;wil1benefitfromsuchatrend.Take ;cornforexample,intheU.S.thecorn ;yieldpermuisabout6,000,whilein ;Chinathebestyieldisabout4,200 ;andtheaverageis3,600,60%ofthe ;U.S.average.Suchalargegapcould ;onlybemetthroughseedenhancement ;andimprovementoftheagricultural ;mechanization.Thenthefarmingma

    ;chinesandtheagriculturalprocess,and ;thevarietyandtechnologycouldbe ;combined.Therefore,itisver,,urgent ;todeveloptheagriculturaltechnology ;basedonseedenhancementandfarm

    ;ingmachinery

    ;Seedtechnologyinnovationmight ;bethebreakthroughpoint

    ;China’sseedindustrymarketis

    ;verylarge.SinceChinabecameamem

    ;bercountryofWTO,theChineseseed ;industryhasundergonearapidgrowth ;anditsseedmarkethasbeenexpanding ;rapidiv.Thetotalproductionvalueof ;theseedindustryhasincreasedfrom25 ;billionguanin2000to55billionyuan ;in2008.Astheseedmarketbecomes ;morematureandtheindustryfurther ;develops,themarketvalueisexpected ;tohit100billionyuaninthefuture. ;1eyear2011marksanewmilestone ;inthedevelopmentoftheseedindustry. ;TheStateCouncilissued”theOpinion

    ;onAcceleratingtheDevelopmentof ;theModernSeedIndustry’’’clarifling

    ;thestrategicandimportantposition ;andalsothefuturedevelopmentdirec

    ;tionofthemodernseedindustry.The

    ;documentalsoraisedthedevelopment ;thoughtsof”basingoncorporations

    ;andintegratingseedbreedingandpro

    ;motion.’’TheChineseseedindustryis

    ;embracinganunprecedenteddevelop

    ;mentopportunity.

    ;Recentlyaseriesofpolicymea

    ;sureshavebeenmadetobolsterthe ;seedindustrydevelopment.TheMin

    ;istryofFinancehasagreedtosetupa ;developmentfundfortheseedindustry; ;theStateAdministrationofTaxation ;hasmadespecificregulationsonthe ;exemptoftheincometaxofcompanies ;featuring”integrationofseedbreeding

    ;andpromotion”;ChinaDevelopment

    ;CS

    ;Bankrequiredallitsbranchestopro

    ;videmorefundingsupportfortheseed ;industrydevelopment;whiletheAgri

    ;culturalDevelopmentBankofChina ;willprovidebenchmarkinterestrate ;servicethatfavorstheloansforseed ;purchasesofrelatedcompanies. ;The”12thFive-YearPlanforA

    ;culturalTechnology’’willhaveitsmain

    ;aimas”makingbreakthroughsinvariety

    ;breedingwithgreatapplicationvalues ;andintellectualpropertyrights,raising ;thecorecompetencyoftheagricultural ;plants”.Theplanwillalsostressgreat

    ;foCUSon”newvarietynourishment”and

    ;encouragetheexpansionofseedcompa- ;nieswithlargescale,strongcompetitive

    ;nessandgoodgrowthprospect. ;Researchersfromsecurities

    ;tradingcompaniessaythatthegood ;seedsubsidyandtheincreaseofgrain ;purchasingpricehavestimulatedthe ;growthofdemand.Ontheonehand, ;thegovernmentisraisingdirectsub

    ;sidrandgoodseedvarietysubsidyfor ;farmersbyalargemargin.In2003,the ;nationalgovernmentallocated300mil-

    ;lionyuanasgoodseedvarietysubsidy, ;whilethesubsidyhasincreasedto22 ;billionyuanintheyear2011,which ;lowersthecostsforfarmers.

    ;Ontheotherhand,theriseof

    ;grainpurchasingprice,especiallythose ;grainvarietiesspecifiedbypurchasing ;companies(thepricewillbe1020%

    ;higherthannormalprice),whichen- ;couragesfarmersinitiativeotgrowmg ;goodseedvarieties.Asfarmerstendto ;growsevera1widelypromotedvarieties, ;theseedproductsofcompetitivecom

    ;panieswillmeeta”demand—exceed

    ;supply”situation,whichwouldfurther

    ;lifttheseedprice.

    ;Thekeytopromotingthetechnol- ;ogyinnovationoftheseedindustryis ;tomakingquickbreakthroughinseed ;varietydevelopmentandbreedinga ;groupofflagshipcompanieswithgreat ;competitivenessintheglobalmarket. ;Theinnovationoftheseedindustry ;technologyliesinthesupportofseed ;companiesfeaturing”integrationof

    ;seedbreedingandpromotion”,andthe

    ;quickestablishmentofanewcommer- ;cialseedbreedingsystemwithcompa- ;niesasmajorsubjects.Theinnovation ;shallmakedemandsasitsguidance,a ;particularvarietyasthebasicunit,the ;industrychainasitsmajorvehicle,to ;letcompaniesbecomethemajorplayers ;fromR&Dinvestmenttoresultappli

    ;cation.Undersuchabackground,those ;flagshipcompanieswithgreatadvan

    ;taresinseedresearchanddevelopment, ;cooperationwithresearchandscientific ;institutionsandmarketing.

    ;]1eNo.1documentplacesfarm

    ;mgtechnologyonacorporatetooting, ;optimizesdistributionofseedcompa

    ;nies,raisesmarketaccessthresholdand ;issuesaseriesofpolicymeasuresthat

    ;favorflagshipcompanies.Expertsin ;thefieldsaythatwiththeaimof”sup—

    ;portingthesuperiorandthestrong”,

    ;domesticlistedcompaniesthatmight ;benefitfromsuchpoliciesinclude: ;LongpingHightech,DenghaiSeed,

    ;FengleSeed,anyinHightech,

    ;DunhuangSeedDabeinongnxi

    ;angDenongandShennongDafeng. ;Aneraofmechanizationfor

    ;farmingproduction

    ;TheNo.1documentalsopoints

    ;outthattospeedupthefarmingmech

    ;anization,itisnecessarytoexpandthe ;operaionareaandimprovetheservices ;ofagriculturalmachines.1-hatistosay, ;progresshastobemadeinthenumber ;ofagriculturalmachineaDplicationand ;alsotheleveloftechnology.

    ;ThealreadyPublicized”12thFive—

    ;YearPlan”foragriculturalmachines

    ;alsopointsoutthatasof2015,thetotal ;outputofagriculturalmachineswill ;reach1billionkilowatt.Thenumber ;otmajoragriculturalmachineryequ1p

    ;menthasbeenincreasingsteadily,the ;structureisfurtherimprovedandre

    ;giona1developmentmorecoordinated. ;Majorbulkagriculturalproducts, ;includinggrain,cotton,oilseedand ;sugar,haveexperiencedahigherlevel ;ofmechanization.Andmorethan60% ;ofthefieldshavebeenplantedbyma- ;chinesf52%attheendofeleventhfive

    ;yearperiod1.Newbreakthroughshave ;beenachievedinricetransplantingand ;harvestingofcorn,cotton,oilseedand ;sugarcane.Thegrowthofmajoragri

    ;cukuralproductshasbeenfullvmecha- ;nizedandthemechanizationofhus

    ;bandryandaquiculturehasimproved ;marked

    ;Statisticsshowthatduringthe ;11thFive-YearPlanperiod,therev

;enueofChina’sagriculturalmachine

    ;industryhadincreasedfrom112.98 ;to265.56billionyuan.increasing ;bv135%andthecompoundannual

    ;growthaveragereaching18.6%:the ;operationprofitshadraisedfrom4.71 ;to18.46billionyuan,increasingbya1_ ;most300%andthecompoundannual ;growthaveragereaching31.4%.Also ;atthesametime,themechanization ;rateofagriculturalplantinghasfor ;thersttimesurpassed5O%.hitting ;52.3%.indicatingthatthemachine

    ;basedproductionmethodhastakena ;majorroleinagriculturalproduction ;andtheChineseagriculturalproduc

    ;tionmethodisembracinganeraof ;agriculturalmechanization.

    ;What’smore,theNo.1docu—

    ;mentstressesemphasisonenhancing ;thepromotionofagriculturaltechnol- ;ogy’:mprovlngagriculturalmachinery

    ;promotionservice,resolvingthe”last

    ;mile”problemandraisingagricultural

    ;technologyleve1.Thedocumentalso ;callsforafurtherdevelopmentofnew ;agriculturalsocialserviceorganizations, ;tosupportagriculturalcooperatives, ;supplyingandmarketingcooperatives, ;farming-relatedcompaniesandagricul- ;turalprofessionalserviceorganizations. ;IndustryexpertssaythatintheAshare

    ;market,companiesthatpromoteagri

    ;culturalmachinesincludeShanghui

    ;longShareandJifengAgricukuralMa- ;chinery.Companieslikethesewillhave ;abrightfutureofgrowth.@

    ;Chinas1stPoticyDocumentinReview ;Overthepasteightyears,thisgovernmentpolicydocumenthasbeenkey

    ;ineffectingreformanddevelopmentofChina’sexpansiveruralsector.

    ;TheNo.1centraldocumentisthefirstpolicydocumentreleasedbyChi

    ;na’scentralgovernment,atthestartofeveryyear.Btitlater,itbecameknown ;asapolicyguidanceonarchitecturalandruralissues.From2004to2011,the

    ;documenthasplacedemphasisonthreemajoragriculturalissues.

;In2004,thefoCUSwasincreasingfarmers’incomes.

    ;In2005,thespotlightwasplacedonimprovingagriculturalproduction ;capacity,aswellasimprovingruralinfrastructureandtechnology. ;In2006theemphasiswasoilpushingforwardrul-alareastowardsa’’new

    ;countrysidescheme’’.

    ;In2007thefocusevolvedtothedevelopmentofmodernagriculture,in ;thetechnologyandbusinessmodeltoimproveproductionefficiency. ;In2008thefocusshiftedtofurtherconsolidatinginfrastructure.butadd

    ;ingallitemtoimprovethepublicservicestandard.

    ;In2009thefoCUSshiftedtomaintainingstableeconomicgrowthinrural ;areas:optimisingproductionstructure:andaddingmoreinvestmerit.Thedoc

    ;umentalsoemphasizedthesufficientsupplyofprimaryagriculturalproducts. ;The2010no.1centraldocumentfurtherconsolidatedthepreviousyear’s

    ;guidance.Forthefirsttimethedocumentguaranteedthetotalamountofin- ;vestmentforagriculturalissues.andensuredinputproportionswillimprove ;steadily.Also.itwasthefirsttimethegovernmentdecidedtoensurenorural ;areawouldbeleftwithoutfinancialservices,andthatmorefundswouldbe ;madeavailablefromagriculturalbanksforagriculturalprojects. ;Lastyearwasthefirsttimethedocumentfocusedonwaterconservancy ;andirrigationprojects.

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