Hi Michael,

Land tenure is changing. After the rural reforms in the early 80s when the
communes/brigades were disbanded, rural land usufruct rights were given to
households while ownership remained in the hands of the state at the local
level.

Rural land usufruct rights are now increasingly tradeable. The government
encourages the development of integrated agricultural companies that either
lease the land from villages, or establish contracts with individual farmers to
produce. Many of these companies are foreign, I know of some big Hong Kong and
Thai players, but I don't keep track of this stuff very much. There's a good
recent article about this here:
http://www.chinastudygroup.org/index.php?type=news&id=5360

Yes, grain production has been falling in China recently, although everyone
claims that there is plenty of reserve grain. Usually urban sprawl and shady
land deals are blamed for the reduction in grain production, not shifting
production. China lost arable land equal to the area of Maryland to these
processes last year according to this interesting article:
http://www.washingtonpost.com/wp-dyn/articles/A6653-2004Apr12.html

Cheers,

Jonathan



How is China able to export fruits and nuts?  Where do the farmers find the land
to grow such crops?  Are they cutting back on the production of grains?




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