Business acumen helps farmers succeed

LUZHOU, Sichuan: Mu Tingcheng is no ordinary farmer.

While most of his neighbors have been content to plant traditional crops like rice and corn, Mu leased 988 acres of land last year and planted cinnamomum petrophilum, an oil-producing plant that promises to make him rich.

"The oil is of better quality than similar, sassafras oil produced in South America. It's used to make medicine, perfume, and other chemicals," Mu explained.

Last year, he sold 150 tons of the oil to factories in Shanghai and Zhejiang for $13,235 a ton. He hopes to increase his output to 2,500 tons within five years.

Best of all, the market for the oil has not been significantly affected by the global economic slowdown, as these industries are more or less immune to financial fluctuations, according to Mu. The same is true of litsea cubeba oil, which he has grown successfully for 20 years.

Farmers like Mu Tingchang are the new face of agriculture in China. They know the land, but they are also savvy businessmen.

"These days, it's not that easy to get ahead in business. You're always vulnerable to the macro economy, and the minute you start to get ahead, someone else is nipping at your heels," said Mu. "There are definitely advantages to being a farmer."

In recent years, agriculture in China has been eclipsed by industrial development. Now, manufacturing has stalled, and State planners are once again looking to rural areas to pick up the slack.

Successful farmers have learned the lessons of the past few decades and are looking for crops that can produce a steady income, rather than simply praying for good weather like their ancestors.

For example, in Tengxian county, Guangxi Zhuang autonomous region, farmers were successfully raising two varieties of tangerine on 11,532 acres of farmland.

However, their crops ripened in August and October, leaving them nothing to bring to market in September. Eventually they lost their buyers to another area.

Then, by chance, citrus grower Li Zhifeng went to Guangdong and found a cross between a tangerine and an orange that ripens in September. He bought 20,000 saplings on the spot and brought them back to Guangxi. Now the buyers are back, and Li and his neighbors have something to sell them.

Smarter farming is crucial to rural areas, many of which still struggle with poverty. Per capita income in these areas rose by 15 percent last year, to $700 per capita.

The return of migrant workers, who have lost their jobs in coastal areas, also underscores the need for more employment. The government is seeking to improve conditions with programs like "home appliances to the countryside," which subsidizes purchases by rural residents.

(China Daily 04/20/2009 page6)