The leadership of the Chinese Communist Party is meeting in Beijing this week to discuss what appears to be a revolutionary idea to allow farmers to lease their land to bigger landholders, thereby creating larger farms. This is an amazing idea for China, a so-called socialist country, because it will open the door to the reemergence of the hated landlord class (the hated dizhu class of China's Communist revolution) and share-cropping farmers who provided much of the muscle for China's revolution. Talk about back to the future!
The debate in Beijing is an indication of just how far China has come from its revolution -- as if we needed any more proof. Now, to be fair, the rationale behind the proposed changes are, well, rational. The last great decade for agriculture in China was the 1980s. Since then it has lagged behind the rest of the country in development. In terms of foreign trade, small-scale Chinese farmers compete very well in apple juice and garlic, but not in many other areas.
Second, one of the reasons China's food safety problems are so grave is that that current system -- because land is leased and not owned, and divided up in small plots -- does not reward investment. There's no incentive for an "organic" farmer not to use pesticides or a small-scale cattle rancher not to sell cattle who have died from disease to an abattoir as meat. A few weeks ago, I came across a series of photographs on the web about one Chinese business that goes house to house in search of dead chickens. It then "freshens" them up with dye (yum!) and sells them as "high quality" poultry.
So, why not "rationalize" production, create bigger farms and produce more goods, more cheaply, and hopefully more safely. It's basically the China factory model, or the China price, brought to China's countryside. One would expect that Chinese coffee, fruit and even its wine (it's not horrible but it ain't California yet) would become immediately more competitive.
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