Research on the Influencing Factors and Safeguard Mechanism of Farmers’ Income Growth in the New Era

As an important indicator to measure the degree of general social affluence and economic development in a country or region, peasant income has become an important focus of rural development under the new era rural revitalization strategy. The issue of farmers’ income is the core and key to the issue of “agriculture, rural areas and farmers”. Under the rural revitalization strategy, the traditional rural areas have undergone tremendous changes, and the wages of farmers’ wages, operating income, and transfer income are insufficient. Farmers’ continued income growth is facing enormous challenges. In the face of difficulties, the 19th National Congress of the Communist Party of China proposed that “the second round of land contracting will be extended for another 30 years”. It can be seen that the party and the state have profoundly recognized the importance of peasant income for increasing farmers’ income.

Post–1978 Rural Economic Policy and Peasant Income in China

Per capita peasant income in China rose only 0·5 per cent per year over the two decades prior to 1978. Rural income growth was not only slow, it also lagged far behind the 1·7 per cent per year rate of the urban sector, which had started from a higher base. In December 1978 participants at the Third Plenary Session of the 11th Central Committee of the Chinese Communist Party ratified major policy changes designed to increase peasant income substantially. These and ensuing changes have raised the profitability of agriculture and altered production and marketing patterns. Before evaluating the magnitude and sources of income growth it will be useful to outline the major policy changes.