Four Major Industry Opportunities Behind the New-Generation Agricultural Productivity

During the deliberations of the Jiangsu delegation at the Second Session of the 14th National People’s Congress, General Secretary Xi Jinping emphasized the need to firmly grasp high-quality development as the primary task and to develop new‑type productive forces in a manner suited to local conditions. The introduction of the concept of “new‑type productive forces” provides a scientific guide for accelerating technological innovation and advancing high‑quality development in the new era and on the new journey. As a major arena for cultivating this new type of productivity, what kind of developmental momentum can the agricultural sector expect?

What is new‑type productive forces?

New‑type productive forces are driven by innovation, breaking away from traditional modes of economic growth and paths of productive‑force development. They are characterized by high technology, high efficiency, and high quality, embodying an advanced form of productive forces that aligns with the new development philosophy.

It is driven by revolutionary technological breakthroughs, innovative allocation of production factors, and the deep transformation and upgrading of industries.

Its fundamental essence lies in the qualitative leap of the means of production, the objects of labor, and their optimized combination.

Centered on a substantial increase in total factor productivity, it is characterized by innovation, hinges on high quality, and fundamentally embodies advanced productive forces.

Core Elements of Developing New-Form Productivity

Technological innovation can give rise to new industries, new business models, and new drivers of growth, making it a core element in developing new‑type productive forces.

It is imperative to strengthen scientific and technological innovation, particularly original and disruptive breakthroughs, accelerate the achievement of a high level of self-reliance and self-strengthening in science and technology, and win the tough battles over critical core technologies. This will ensure that original and disruptive innovations flourish, fostering new drivers of growth for advanced productive forces.

How to Develop New-Form Productivity

Timely application of scientific and technological innovation achievements

It is essential to promptly apply the outcomes of scientific and technological innovation to specific industries and industrial chains, upgrade and transform traditional sectors, foster and expand emerging industries, strategically develop future-oriented industries, and further refine the modern industrial system.

Layout the industrial chain

We must align industrial chains with the development of new‑type productive forces, enhance the resilience and security of industrial and supply chains, and ensure that our industrial system is independent, controllable, safe, and reliable.

Scientifically plan and arrange around strategic tasks.

We must strategically align scientific and technological innovation with industrial innovation, centering on the implementation of major strategic tasks such as advancing new‑type industrialization and accelerating the development of a manufacturing powerhouse, a quality‑driven nation, a cyber power, Digital China, and an agricultural powerhouse.

Vigorously develop the digital economy.

We must vigorously develop the digital economy, promote its deep integration with the real economy, and build internationally competitive digital industry clusters.

New-Generation Agricultural Productivity

Agricultural chips: the cornerstone of independent and controllable development.

The 2024 No. 1 Central Document calls for accelerating the revitalization of the seed industry, improving mechanisms for joint research and development and collaborative application, intensifying efforts to master critical core technologies in germplasm resources, expediting the selection, breeding, and promotion of urgently needed, high‑quality, domestically developed varieties, launching pilot programs integrating major variety R&D with demonstration and dissemination, and speeding up the industrialization and scaling up of bio‑breeding.

Seeds, the “chip” of agriculture, embody the hallmarks of a new type of productive force. Since 2021, China has launched an initiative to revitalize the seed industry, setting out a comprehensive plan to “get off to a strong start in the first year, lay the groundwork over three years, achieve tangible results within five years, and realize major breakthroughs within ten years.” This initiative advances five key actions: conserving germplasm resources, driving innovation, supporting leading enterprises, upgrading production bases, and purifying the market.

As the “first battle” in the seed industry revitalization campaign, China completed its third nationwide survey and collection of agricultural genetic resources over a three-year period from 2021 to 2023, thoroughly mapping its genetic resource inventory. During this effort, 139,000 new crop accessions, 270,000 livestock and poultry accessions, and 120,000 aquatic resource accessions were collected, while a number of endangered and rare genetic resources were placed under emergency conservation, ensuring that all resources eligible for collection were gathered and all those deserving protection were safeguarded.

Enterprises are the primary drivers of technological innovation and the backbone of modern seed industry development. The presence of a group of leading seed companies with integrated innovation capabilities and market‑oriented expertise largely determines the level of new‑type productive forces in the sector. At present, China has preliminarily established a national framework for revitalizing the seed industry, comprising 69 leading enterprises in crop production, 86 in livestock and poultry, and 121 in aquaculture, thus forming a core force for seed‑industry rejuvenation. Supported by a series of favorable national policies, Chinese seed companies have steadily enhanced their international influence. In 2022, China’s exports of crop seeds reached US$260 million, up 10% from 2020. “Going global” and expanding into international markets has become an indispensable path forward.

During this year’s Two Sessions, Wang Chunxiu, a member of the National Committee of the Chinese People’s Political Consultative Conference, a member of the Standing Committee of the Central Committee of the China Association for Promoting Democracy, and Chairperson of its Ningxia Regional Committee, proposed that, to enhance the overall international competitiveness of seed companies, relevant industry authorities should focus on the development of the global seed market, strengthen research on strategies for Chinese seed enterprises to “go global,” and further refine sector‑specific plans to support their entry into international markets, thereby providing policy guidance for their overseas expansion. At the same time, qualified seed‑production enterprises should be encouraged to establish seed‑production bases abroad, which would not only better serve overseas customers and stimulate economic growth in countries along the Belt and Road Initiative, but also bolster the international influence of Chinese seed companies.

In the future, the development of the seed industry and seed enterprises will undoubtedly emerge as a major highlight of agriculture’s new‑type productive forces.

With swords clashing and horses galloping, they roamed the fields, promoting agriculture and sericulture.

The 2024 No. 1 Central Document calls for strengthening agricultural science and technology support, vigorously implementing measures to address shortcomings in agricultural machinery and equipment, improving subsidy policies for the purchase and use of agricultural machinery, and establishing a “green channel” for the certification of urgently needed and suitable agricultural machinery.

At present, the national comprehensive mechanization rate for crop cultivation and harvesting has exceeded 73%. Nationwide, 2.2 million agricultural machines are equipped with Beidou terminals, nearly 200,000 plant protection drones are in operation, and the annual area treated by these drones has surpassed 2.1 billion mu.

At present, the demand structure for agricultural machinery across various sectors is undergoing profound changes, while the contradiction between overall oversupply and structural shortages in the agricultural machinery industry remains acute. For instance, the development of specialized, small-scale machinery tailored to hilly and mountainous regions has long been struggling to gain traction.

Data show that the comprehensive mechanization rate for crop cultivation and harvesting in China’s hilly and mountainous regions is nearly 20 percentage points lower than the national average. Accelerating the development and supply of specialized machinery tailored to the unique needs of these areas, and addressing the shortcomings in the design and production of small and micro‑scale agricultural equipment, are not only pressing priorities for frontline agricultural production in hilly and mountainous regions, but also essential steps in meeting the critical challenge of advancing new‑type productive forces in the agricultural sector.

Research and development and manufacturing are two critical links in the agricultural equipment industry chain. Accelerating the emergence of new‑type productive forces hinges on bridging the gap between scientific and technological breakthroughs and their industrial application, a process that relies heavily on the demonstration and leadership of leading enterprises in the sector. In recent years, bolstered by robust national policies, the agricultural machinery and equipment sector has seen the rise of several enterprise clusters characterized by strong industry leadership, pronounced economies of scale, and a high degree of innovation, which have become key drivers of new technologies and cutting‑edge equipment.

Of course, building a modern agricultural machinery and equipment system is not only a long-term endeavor but also a comprehensive, systemic undertaking. To create more suitable application scenarios, we must adopt an integrated approach to foster the convergence of “five excellences”—high‑quality farmland, superior crop varieties, advanced cultivation practices, cutting‑edge machinery, and sound institutional frameworks—while leveraging information and digital technologies to chart a development path that aligns with China’s fundamental national conditions and agricultural realities.

A powerful tool for strengthening agriculture, it fuels the cultivation of mountains and the exploitation of the seas.

In 2024, the No. 1 Central Document proposed advancing an initiative to modernize facility agriculture, supporting deep-sea aquaculture, developing forest-based food products, and piloting interest subsidies and reward programs for loans in agricultural sectors such as high-standard farmland development and facility agriculture. It also called for optimizing the layout of grain storage facilities, enhancing reserve security, issuing the country’s first national plan for the development of modern facility agriculture, and launching the Facility Agriculture Modernization Enhancement Initiative, which has gotten off to a strong start.

Modern facility agriculture is a shining jewel in the crown of agricultural modernization and a “new frontier” that must be conquered as China accelerates its drive to become a strong agricultural nation. The report to the 20th National Congress of the Communist Party of China calls for “establishing a holistic view of food, developing facility agriculture, and building a diversified food supply system.” At the Central Rural Work Conference at the end of 2022, General Secretary Xi Jinping emphasized that facility agriculture holds great potential, urging the development of solar‑powered greenhouses, plant factories, and intensive livestock and poultry farming, while advancing the construction of land‑based and deep‑sea aquaculture farms to expand the spatial scope of agricultural production.

For example, in the livestock sector, three-dimensional facility-based farming is on the rise, with multi-story pig farms being the most prominent case. Raising pigs in high-rise buildings can significantly conserve land resources, and when paired with end-to-end, highly efficient production equipment and intelligent management systems, it elevates the scale and level of smart pig farming.

In the field of facility-based aquaculture, the deployment of equipment such as water-quality monitors and smart feeding systems has significantly enhanced farming efficiency while reducing labor costs.

It is evident that modern facility-based agriculture can significantly expand the frontiers of agricultural production, representing a new “blue ocean” that must be tapped to build a diversified food supply system under the “Grand Food View.” Consequently, how to unlock this “blue ocean” has become a central focus of agricultural industry exploration.

Super Brain: Bridging Digital and Agricultural Innovation at the Forefront of Trends

The No. 1 Central Document of 2024 calls for the continued implementation of the Digital Rural Development Initiative, the advancement of smart agriculture, and the narrowing of the urban–rural “digital divide.”

“Plant factories,” smart poultry farms, intelligent fish ponds… In recent years, modern information technology has been deeply integrated with the agricultural sector, accelerating its evolution and expanding across planting, animal husbandry, fisheries, and other industries, while seamlessly connecting production, processing, distribution, marketing, management, and services. Experts agree that developing smart agriculture holds potential in every region, offers promising prospects across diverse sectors, and provides opportunities for both large and small farmers—key to success lies in tailoring strategies to specific application scenarios and deploying targeted, precision‑driven measures.

For example, in the livestock and poultry farming sector, smart agriculture holds tremendous potential for addressing two major challenges: precision management and disease prevention and control.

In key areas such as smart agriculture technologies, core components, and intelligent equipment, it is essential to strengthen independent R&D and promote domestic production, which will help reduce costs.

Indeed, the widespread adoption of smart agriculture still faces numerous challenges, including insufficient coverage of rural information infrastructure such as internet access and a lack of robust big‑data support. Moreover, research costs, implementation expenses, and operational expenditures continue to pose significant barriers to the broader deployment of smart agricultural technologies.

To this end, in addition to implementing targeted subsidies and strengthening technical training and guidance for farmers and agricultural enterprises, bolstering independent R&D and promoting domestic production in key areas such as smart agriculture technologies, core components, and intelligent equipment will also help reduce costs.

These needs and trends will collectively shape the macroeconomic backdrop for the development of new‑generation agricultural productivity, while also outlining a new landscape for future agricultural investment.

Source: People’s Daily (Agriculture Edition)