The objects of agricultural labor are living plants and animals, and the agricultural products obtained are, in turn, the plants and animals themselves. Generally, all sectors that harness the growth and development patterns of organisms such as animals and plants and use artificial cultivation to produce goods are collectively referred to as agriculture. Thus, agriculture is an industry dedicated to cultivating plants and animals and producing food as well as industrial raw materials; it belongs to the primary sector and serves as a foundational industry supporting the construction and development of the national economy.

From the perspective of industry scope, agriculture in a broad sense encompasses five types of industries: crop cultivation, forestry, animal husbandry, fishery, and sideline activities. In contrast, agriculture in a narrow sense refers exclusively to crop cultivation, which primarily involves the production of food crops, cash crops, fodder crops, and green manure crops.

According to the "Classification of National Economic Industries" (GB/T 4754-2017), the sub-sectors included in China's agriculture are as follows:

Agricultural science and technology is the primary driving force behind agricultural development. Since the reform and opening-up, China’s agriculture has achieved remarkable progress, in which agricultural science and technology has played a tremendous role. It has been instrumental in strengthening the promotion of agricultural technologies, accelerating the application of agricultural research findings and practical technologies to agricultural production, ensuring the sustained development of agriculture, and realizing agricultural modernization. Currently, the core agricultural technologies mainly include the following:

The upstream segment of the agricultural industrial chain involves the research and development, production, and supply of agricultural inputs. For example, seed companies develop and cultivate superior crop varieties; fertilizer plants produce fertilizers tailored to the needs of different soils and crops; and agricultural machinery enterprises manufacture advanced agricultural equipment. These inputs provide the material foundation for agricultural production.

The midstream of the agricultural industrial chain involves agricultural product production, including crop cultivation and livestock and poultry breeding. In recent years, China’s midstream agricultural industry has actively adopted modern technological approaches—such as precision agriculture technologies (which leverage satellite positioning, geographic information systems, remote sensing technologies, and other tools to enable precise management of farmland) and facility agriculture (including greenhouses and soilless cultivation)—to enhance agricultural productivity and improve the quality of agricultural products.

Downstream of the agricultural industrial chain are the processing, storage, logistics, and sales of agricultural products. Agricultural product processing transforms primary agricultural products into high-value-added goods—for example, fruits are processed into juices, dried fruits, and jams, while grains are processed into flour, noodles, and instant foods. The storage stage ensures the safe preservation of agricultural products, the logistics stage guarantees that agricultural products can be delivered to markets promptly and efficiently, and the sales stage uses various channels to bring these products directly to consumers.

Since 2024, China has been actively leveraging policies to steadily consolidate the agricultural foundation and promote the comprehensive revitalization of rural areas. We regard the comprehensive revitalization of rural areas as the overarching guiding principle for “agriculture, rural areas, and farmers” work in the new era and on the new journey. Upholding a people-centered development philosophy, we fully, accurately, and comprehensively implement the new development concepts, adopt strategies tailored to local conditions and categorized approaches, proceed step by step with sustained effort, and concentrate our resources on accomplishing a batch of practical, tangible, and accessible projects that benefit the masses. In this way, we continue to drive substantive progress and achieve phased results in the rural revitalization strategy.

Currently, China's agricultural structure is undergoing profound transformation, with its key characteristics summarized as diversification, regionalization, and specialization.

From the perspective of diversification, China’s agricultural structure has gradually shifted from a single model dominated by grain production to a diversified pattern encompassing grains, cotton, oilseeds, fruits, vegetables, animal husbandry, and fisheries. This shift not only meets the increasingly diverse consumption needs of the people but also provides farmers with additional income-generating channels. However, this diversified development has also given rise to issues of irrational industrial structure. In some regions, in pursuit of short-term economic gains, farmers have blindly expanded the planting areas of certain crops, leading to oversupply of agricultural products, falling prices, and reduced incomes for farmers.

The regional characteristics are primarily reflected in the spatial layout of agricultural production. China’s different regions exhibit significant differences in natural conditions such as climate, soil, and water resources. Based on their unique resources and market demands, each region has developed agricultural industrial belts with distinctive features. However, this uneven regional development has also become increasingly apparent: some regions, benefiting from favorable natural conditions and convenient transportation, have seen faster growth in their agricultural industries and higher farmer incomes; while other more remote areas, due to unfavorable natural conditions and weak infrastructure, lag behind in agricultural development, resulting in lower farmer incomes.

The characteristic feature refers to regions' emphasis on exploring and cultivating agricultural products and brands that embody local specialties. However, at present, in the development of specialty agriculture, some regions lack unified quality standards and certification systems for their specialty agricultural products, leading to market disorder. Moreover, the branding and promotion efforts for these specialty agricultural products are insufficient, making it difficult to establish scaled-up industrial chains.

(1) Corn Supply and Demand Situation

According to an assessment by the China Meteorological Administration, since corn planting began in 2024, the average climate across major producing regions nationwide has been favorable. Although there have been relatively more sudden floods and other disasters, their overall impact has been limited, generally benefiting corn growth and harvest. On the domestic market, new-season corn is gradually entering the market, feed consumption is steadily increasing, and the operating rate of deep-processing facilities remains high, resulting in generally stable corn market conditions. On the international market, global corn production continues to be expected at a high level, and the supply-demand balance remains relatively loose. As a result, international corn prices are expected to fluctuate at low levels.

Overall, as of September 2024, China’s corn supply is sufficient to meet various corn consumption demands, and the market is operating smoothly.

(2) Supply and Demand Situation of Soybeans

In the 2023/24 marketing year, China’s soybean imports totaled 102 million tons, an increase of 39.2 million tons from the previous month’s estimate. The primary reason for this upward revision is the continually widening decline in international soybean prices, which has significantly reduced import costs and led to higher-than-expected import volumes. Soybean crushing volume reached 97.5 million tons, up 1.35 million tons from the previous month’s estimate. This increase was mainly driven by rising market demand following a drop in soybean meal prices, resulting in higher crushing volumes at oil mills.

Since 2024, soil moisture conditions in Northeast China’s major production areas have been favorable, and soybeans have gradually entered the grain-filling stage. This year, soybean yields are expected to be abundant. U.S. soybean production for the new crop is poised to reach a record high, and the Northern Hemisphere is about to enter the peak marketing season for soybeans. As a result, the global soybean supply situation remains loose.

Overall, as of September 2024, China’s soybean import volume has remained at a relatively high level, further promoting the stable operation of the domestic soybean supply and effectively ensuring that demand for soybeans—whether for crushing, edible consumption, or other uses—is fully met.

(1) Ecosystems and resource environments face dual pressures.

Although China has achieved considerable success in protecting the agricultural ecological environment and making efficient use of resources, the dual pressures arising from the relatively low level of green agricultural development and the insufficient per capita arable land remain significant constraints on the modernization of agriculture and rural areas. On the one hand, there is still a certain gap between the current level of green agricultural development and the requirements of modern agriculture. In recent years, China has made remarkable progress in reducing the use of chemical fertilizers and pesticides, and prominent ecological and environmental problems have been preliminarily brought under control. However, due to the long-term reliance on chemical inputs such as fertilizers and pesticides in agricultural production and management, China continues to carry a substantial ecological debt, and the situation of non-point source pollution in agriculture remains severe.

Moreover, the intensity of fertilizer and pesticide use in China significantly exceeds both the internationally recognized safety upper limits and the global average. This clearly underscores the urgent need to transform agricultural production methods and enhance the capacity for sustainable agricultural development. On the other hand, in China’s agricultural production and management processes, smallholder farmers—though fragmented and scattered—still account for a substantial proportion. The insufficient per capita arable land resources pose a real constraint on the development of moderately scaled agricultural operations. From the perspective of arable land resources, China’s per capita arable land area is less than 1.5 mu, less than half of the global average; moreover, the proportion of Class I to Class III arable land within the total arable land area is even less than one-third. The development of modern agriculture depends crucially on land consolidation and contiguous plots as well as moderately scaled operations. However, given the reality of “a large country with small-scale farmers” and the inadequate per capita arable land resources, the path toward agricultural and rural modernization is undoubtedly hindered.

(2) Rising production costs coexist with an imbalanced supply-demand structure.

Cracking the challenges of rising agricultural production costs and imbalances in supply-and-demand structures is crucial for promoting the quality enhancement, efficiency improvement, and transformative upgrading of agriculture. On the one hand, the continuous rise in agricultural production costs is squeezing farmers’ room for income growth, posing real challenges to the sustainability and stability of their income increases. Among the various costs involved in agricultural production and management, labor costs and land costs are the two key factors driving the escalation of agricultural production costs.

The rapid rise in production costs has led to a severe price inversion between domestic and international markets for agricultural products, especially bulk commodities, further squeezing the profit margins of domestic agricultural producers and dampening farmers’ enthusiasm for grain cultivation. On the other hand, as living standards continue to improve among urban and rural residents, consumer demand for agricultural products is gradually shifting toward higher quality, personalization, and diversification. However, at present, China faces an insufficient supply of high-quality, eco-friendly agricultural products, while there is an oversupply of mid- and low-end agricultural products. This mismatch between supply and demand makes it increasingly difficult to meet and satisfy consumers’ diversified needs for agricultural products, highlighting the urgency and importance of transforming agricultural production and management practices and optimizing the structure of agricultural product varieties.

(3) There is an urgent need to strengthen the deep integration and development of rural industries.

At this stage, the integrated development of China’s industries faces numerous problems and challenges, which are hindering the transformation and upgrading of agriculture as well as its high-quality development. On the one hand, there is instability in the integration of rural industries. Agricultural producers and operators are the key actors in realizing industrial integration. However, due to differences and asymmetries in the status of various agricultural producers and operators, family farms—especially ordinary smallholder farmers—are often at a disadvantage when engaging in joint ventures and cooperation with enterprises, posing a challenge to the stability of rural industrial integration. For example, in Xinye County, Henan Province, the forms of participation by farmers in rural industrial integration remain relatively simple; most farmers adopt the “enterprise + farmer” order-based model, resulting in low levels of farmer engagement and a lack of close and effective mechanisms for aligning interests among all stakeholders.

On the other hand, the depth of integrated rural industrial development remains insufficient. Currently, the integration of rural industries is still largely confined to the initial processing stage of products, with inadequate deep-processing of agricultural products and limited value-added benefits for agricultural products throughout the entire agricultural value chain. Moreover, an overemphasis on agriculture’s economic functions while neglecting its multifunctional nature also hinders the deep integration and development of rural industries, let alone leveraging the advantages and multiplier effects of the “sixth industry.” In addition, an unsound external support environment, difficulties in self-upgrading and self-development, and weak radiating and driving capabilities further constrain the deep integration and development of rural industries.

(1) Transitioning toward smart agriculture and precision agriculture

Since 2024, China’s agricultural sector has been steadily advancing amid multiple challenges—including climate change, resource constraints, and upgrading consumer demands. Agricultural production has made remarkable progress in areas such as scientific and technological innovation and green, sustainable development. Smart agriculture and precision agriculture have become key trends driving the industry’s development. On the one hand, a well-developed socialized agricultural service system is gradually taking shape, seamlessly connecting smallholder farmers with modern agricultural development and continuously boosting agricultural productivity. On the other hand, driven by innovation, the level of sustainable agricultural development continues to improve.

Compared to traditional methods, drone-based operations can save more than 15% on pesticides and fertilizers per mu while simultaneously achieving reduced input and increased efficiency. Through the integrated application of modern information technologies such as smart irrigation and precision agriculture, the average water consumption per mu for farmland irrigation has dropped from 402 cubic meters in 2014 to 347 cubic meters in 2023. In terms of output value, the quality of agricultural products continues to improve, high-quality agricultural brands are emerging one after another, and the agricultural industrial chain is accelerating its evolution. Moreover, as modern lifestyles evolve, the agricultural industrial chain is also undergoing accelerated restructuring and continuous evolution. Looking ahead, China is expected to adopt a multi-pronged approach, further intensifying support for agricultural scientific and technological innovation, enhancing the contribution of agricultural science and technology progress, and accelerating the development of agricultural modernization.

(2) Enhance the level of green development

In 2024, the No. 1 Central Document called for strengthening ecological civilization construction in rural areas. We will continue to fight tough battles against pollution in agriculture and rural areas, promote integrated protection and restoration of rural ecosystems, steadily advance efforts to reduce fertilizer and pesticide use while enhancing their efficiency, and popularize crop-livestock circular models. We will also promote comprehensive prevention and control of agricultural non-point source pollution on a county-wide basis.

In the next phase, China is expected to unswervingly implement the development philosophy of innovation, coordination, green development, openness, and shared benefits. We will earnestly carry out the innovation-driven development strategy, the rural revitalization strategy, and the sustainable development strategy, and vigorously promote ecological civilization construction and green agricultural development. Focusing on enhancing the quality, efficiency, and competitiveness of agriculture, we will tackle major bottlenecks such as the tightening of agricultural resources, prominent environmental issues, and ecosystem degradation. Our goal is to achieve coordinated and integrated development—balancing agricultural production, daily life, and ecological sustainability—for long-term, sustainable growth. To this end, we will establish spatial patterns, industrial structures, production methods, and lifestyles that conserve resources and protect the environment. Moreover, we will actively shift the direction of scientific and technological innovation, optimize the allocation of scientific and technological resources, reform the organizational approaches to science and technology, and build a technological system that supports green agricultural development.

Agricultural production risks primarily stem from natural hazards, such as floods, droughts, windstorms, hailstorms, frost damage, insect infestations, lightning strikes, earthquakes, and mudslides. China is a major agricultural country and also one of the nations most prone to a wide variety of natural disasters. Droughts, floods, frost damage, hot and dry winds, cold damage at low temperatures, frost, hailstorms, typhoons, and snowstorms frequently occur to varying degrees.

According to relevant data, China’s annually averaged area of farmland affected by drought is approximately 20 million hectares. Over the past 30 years, droughts have caused grain losses totaling 153.21 billion kilograms—accounting for 50% of the nation’s total grain loss. At the same time, China is one of the countries in the world most frequently hit by flood disasters, and floods significantly impact agricultural production yields in the eastern and southern regions of the country. In the northeastern region, low-temperature cold damage during summer is a major agricultural disaster; when such climatic impacts become widespread across the entire region, grain yields in the northeast can decline by more than 20%. Along the southeastern coastal areas, natural disasters such as typhoons strike nearly every year, causing heavy losses for vast numbers of farmers—some even falling into or relapsing into poverty due to these disasters. Agricultural natural disasters are characterized by substantial losses, high frequency of occurrence, and difficulty in predicting them in advance, posing significant challenges in assessment and prevention for farmers, governments, and insurance companies alike.

Market risk arises from changes in factors such as imbalances between market supply and demand, fluctuations in agricultural product prices, shifts in economic and trade conditions, rising costs of production inputs, fluctuating interest rates, and evolving trends in capital markets. It can also result from poor management practices, information asymmetry, and inaccurate forecasts of market prospects, all of which may lead to economic losses for farmers. Among these factors, price volatility is a critical determinant of agricultural production and can generally be categorized into cyclical fluctuations, seasonal fluctuations, and random fluctuations. Changes in domestic agricultural product prices are influenced not only by domestic market demand and supply but also by shocks from external markets. The volatility of global economic cycles and other various factors can cascade into the domestic market, sometimes even amplifying their impact.

Price fluctuations can be triggered either by rising prices of production inputs required for agricultural output or by oversupply of agricultural products, leading to price declines. These fluctuations represent one of the most significant risks currently faced in agricultural production and management. Due to the long production cycles in agriculture, market adjustments tend to lag behind, making agricultural product prices prone to substantial volatility. As a result, the risks arising from market price fluctuations are largely borne by agricultural producers themselves. During the planned economy era, China’s system of unified procurement and sales, coupled with strict price controls, masked the manifestation of market risks in agriculture. However, as the pace of marketization accelerates, with reforms in the circulation system of agricultural products and the gradual relaxation of price controls, both the magnitude and frequency of agricultural price fluctuations have been increasing. Consequently, the impact of market risks on agricultural development is steadily growing.