The Ministry of Agriculture and the Ministry of Finance recently jointly issued a circular that the central government has advanced some funds for special transfer payments for agriculture in 2016 to relevant provinces (autonomous regions, municipalities directly under the Central Government and cities with separate plans) to support agricultural production in spring, speed up policy implementation and project implementation, and effectively improve the efficiency of fund use.  

Which funds have been earmarked?

On the premise of the quota subsidy of the agricultural machinery purchase subsidy funds of the central government, the subsidy standard is in principle calculated at 30% of the average price of the same-grade products in recent years (or last year). In view of the volatility of market prices, in the actual implementation of the policy, the actual subsidy ratio of specific products or specific grades fluctuates around 30% in line with the relevant policy provisions.
_Increase subsidies for green production-increasing technologies such as conservation tillage, subsoiling and straw returning, and strive to make up for and open subsidies. The subsidy funds of the central government are mainly used for the machinery needed for the key links in the production of major crops, such as grain, cotton, oil, sugar and forage.
For example, the subsidy fund for the first batch of agricultural machinery purchase in Shandong Province is 1.6 billion yuan, of which the subsidy for subsoiling operations is 150 million yuan, which has been fully distributed and implemented in all parts of the country. This year, Shandong has made the purchase of large tractors with more than 100 horsepower as subsidies, giving priority to meeting the needs of farmers.

     In 2016, the central financial arrangements for agricultural technology extension and service subsidy funds for primary processing of agricultural products, extension of dry farming technology, reform and construction of grass-roots agricultural technology extension system, reform and construction of modern agricultural demonstration zones, development of potato staple food products and industries have all been earmarked.
Construction of Primary Processing Facilities in the Origin of Agricultural Products
The capital arrangement inclines to the dominant production areas, the poor areas of the old and the young, and the new type of business entities. Through project implementation, poor areas should highlight the leading role of professional cooperatives to poor households and quantify the share discount of subsidized funds to their members.
_Project implementation counties should maintain relative stability. In principle, the number of provincial adjustments should not exceed 30% of the previous year, and the construction scale should be properly controlled and the subsidy ceiling raised. The total storage capacity of subsidized storage facilities of each professional cooperative should not exceed 800 tons, the number of subsidized storage facilities should not exceed 5, and the total storage capacity of subsidized storage facilities of each family farm should not exceed 400 tons. No more than 2 seats.
In the subsidy catalogue, 100 tons of storage cellar, 100 tons of ventilation storage, 200-500 tons of assembled cold storage and clean energy hot air drying room are added.

Agricultural production relief funds allocated by the central government for wheat "spraying and three prevention", grassland rodent control and border grassland fire protection isolation zone construction have all been earmarked; funds allocated for major crop pest control mainly support spring farming production, and continue to be arranged according to the needs of agricultural conditions in the annual implementation.

At present, many provinces have issued the implementation plan of "one spray, three prevention" for wheat.
For example, in Henan Province, the objects of subsidies are social service organizations that organize spraying operations, farmers who voluntarily implement "one spraying and three prevention" of wheat, large grain farmers, family farms and farmers'professional cooperatives. According to the principles of "who implements, who subsidizes" and "tilting to service organizations", the subsidy standard per mu shall not exceed 10 yuan.
_Shandong Province allocated 257 million yuan of subsidy funds to carry out "spraying, spraying and preventing" in 16 cities (except Qingdao) of the province. According to the distribution, Heze City will receive the maximum subsidy of 40.32 million yuan. Counties with poverty alleviation tasks should allocate no less than 20% of their funds for the implementation of "one spray, three defenses" in key villages of poverty alleviation work.
_According to the regulations of the central government, the way of subsidy can be materialized or cash subsidy. If material and chemical subsidies are adopted, the agricultural and financial departments shall make unified bidding and procurement work, carefully verify their operational tasks and relevant service agreements, distribute the purchased materials to the social service organizations in time, and cash them before carrying out their operations; if cash subsidies are adopted, they shall follow the procedures of first operation, first publicity and then cash. In the preface, the subsidy fund will be cashed directly to the social service organizations.

The funds allocated by the central government for the development of modern agricultural production, including the expansion of basic cows, the development of modern grassland animal husbandry in the south, the demonstration construction of high-yield and high-quality alfalfa, and the construction of demonstration cooperatives of farmers'professional cooperatives, and the funds allocated for animal epidemic prevention subsidies for grass-roots animal epidemic prevention have all been distributed in advance.
In addition, some subsidy funds have introduced specific subsidy standards.

The state grants 1500 yuan per mu for returning farmland to forestry (including 1200 yuan for cash grant from the central finance, 300 yuan for planting seedlings and afforestation by the National Development and Reform Commission), 1000 yuan per mu for returning farmland to grassland (including 850 yuan for cash grant from the central finance and 150 yuan for planting seedlings and grass by the National Development and Reform Commission).
_The grant funds for returning farmland to forestry arranged by the Central Committee are distributed to provincial people's governments three times, 800 yuan per mu in the first year (including 300 yuan for planting seedlings), 300 yuan in the third year and 400 yuan in the fifth year; and 600 yuan per mu in the first year (including 150 yuan for planting seedlings and grass) and 400 yuan in the third year.
Source: Agricultural Cooperation Forum