March 2, 2010
China funds US$4.2 billion to support farmers
China's central government has allocated RMB28.6 billion (US$4.2 billion) to support farmers, the Ministry of Finance said in a statement Monday (Mar 1).
The bulk of the funding of RMB18.6 billion (US$2.72 billion) would be used to subsidise farmers in growing improved varieties of crops such as corn among others. While the other RMB10 billion (US$1.46 billion) would subsidise purchases of farm machinery such as sowers and reapers.
The funding is aimed to improve motivation in agricultural production, and stabilise the country's grain production, according to the statement. The funding was on top of RMB86.7 billion (US$12.69 billion) of subsidy to grain-growing farmers nationwide in February.
The financial support for agriculture came as severe drought continued in the nation's west and south.
The National Meteorological Center issued a drought alert earlier on Sunday (Feb 28) warning the severe drought would continue over the next three days.
The State Flood Control and Drought Relief Headquarters said the drought, which started at the beginning of February, had affected 4.64 million hectares of arable land and left 8.4 million heads of livestock short of drinking water.