China will issue its first policy document for 2013, and it's expected to be targeting the agricultural sector, underscoring the importance of rural development. It would also focus on diversifying agricultural production and encouraging more specialized, large-scale farming.

The No.1 document gives priority to diversifying production patterns, and to establish large-scale, specialized, organized and new agricultural business entities.

Song Hongyuan, general director of Research Center for Rural Economy, said: "The bottom line is that we stick to family-run holdings, and develop new collectives, including professional farms, co-operatives, and joint stock partnerships. Meanwhile the policy also aims to link farmers with professional organizations to achieve mutual benefits for both, and facilitate agricultural modernization."

The measures aim to protect and motivate farm hands, and ensure food security and provision of major agricultural produce in China.

China achieved higher grain output for a ninth consecutive year in 2012. The record stood at about 589 million tons, 18 million more than the previous year. But grain imports also rose to 77 million tons, up 3.3%. That means about 19 million Chinese people are now eating imported, rather than home-grown grain, raising questions of food security.

Zhang Nini, Beijing, said:"China's traditional agriculture is based on small, family-run holdings, the production capacity under this system is often limited and falls short of market demand. By encouraging large-scale, and specialised farming, experts believe that it will help to ensure food security, and address lingering problems in China's rural area."

Rural issues are a traditional focus for No.1 documents, having been the theme for the past ten years. The priority this year, experts say, continues and supplements the existing framework.

Song Hongyuan, said:"This is the only document focusing on reform to existing production patterns. It continues policy makers' emphasis on rural issues, and also supplements past documents, which feature general issues such as raising farmers income and promoting new rural development; or specific sectors such as agricultural irrigation, and science. With this document, China has set up basic agricultural policy framework."

The new policy also imposes limits on commercial capital in rural areas, which often target land for investment. A regulation is in the making to impose stricter controls over the entry and supervision of commercial capital.

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