China will reform a series of agricultural subsidies and ways of financial investment in agricultural industry in the 13th Five-Year Plan period (2016-2020), the Xinhua-run Economic Information Daily reported on Wednesday.
The authorities are expected to combine the existing three subsidy policies including subsidy for superior crop varieties, direct subsidy to grain-growing farmers and comprehensive subsidy for agricultural materials into one, namely, "agricultural support and protection subsidy", with the aim to protect farmland productivity and support moderate scale management of grain, the report says.
Regarding ways of financial investment in agricultural industry, the authorities will amend the transfer payment from the exchequer to build a mechanism of realizing a steady growth in investment in agricultural industry and rural areas. Information technology application is the key to promoting development of modern agriculture and enhancing agricultural efficiency.
With the quick land circulation, rise of large growers and bright prospect for the agricultural materials comprehensive service platform and agricultural informatization, modern agriculture will develop fast in China.
On China's A-share market, companies including Shenzhen Noposion Pesticide Co. (002215.SZ), Kingenta Ecological Engineering Co. (002470.SZ), and Shenzhen Batian Ecotypic Engineering Co. (002170.SZ) will benefit from it, said analysts of Qilu Securities.
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