New farm plan emphasizes tech-driven growth

Editor's note:  The Ministry of Agriculture and Rural Affairs has issued the 15th Five-Year Plan (2026-30) for the country's crop farming industry. Agricultural and business experts, including Zhong Yu, head of the crop farming economics research division of the Institute of Agricultural Economics and Development under the Chinese Academy of Agricultural Sciences, and Gu Huangqian, a co-chief analyst of Changjiang Securities Research Institute, shared their insights on the plan. Below are excerpts of their remarks as reported by Xinhua Finance, a financial news outlet of Xinhua News Agency. The views don't necessarily represent those of China Daily.

Priorities for the crop farming industry during the 15th Five-Year Plan (2026-30) period will be on yield improvement, green production, technology empowerment and risk management.

There is limited scope to boost grain output by merely expanding the scale of crop planting. Therefore, the emphasis will be on harnessing technology to increase yields. During the process, synergy will form among efforts to develop good farmland, seeds, machinery and farming techniques. This will help ensure that the strategy of improving farmland management and promoting the application of technology to boost crop production is well implemented.

Changes in the structure of the agricultural workforce and requirements for greater efficiency in farming will lead to a wider application of smart technologies.

Nowadays, drones are used for plant protection in some regions, while innovations such as smart irrigation and precision fertilization are also gaining traction. But efforts need to be stepped up to further develop intelligent equipment, enable precise management of agricultural production and promote digital services.

The use of biopesticides is expected to increase significantly. These products, including antibiotics used on crops, already account for over 10 percent of China's pesticide market. The market size was about 21 billion yuan ($3.1 billion) in 2024, and is expected to rise to 33 billion yuan by 2027.

The plan aims for 65 percent of staple crops to be treated with green pest control methods by 2030, signaling a relatively strong market demand for biopesticides and related services. To capture greater market share, companies should focus on reducing costs, increasing efficiency and providing comprehensive technical services.

Green pest control is more than substituting one pesticide for another; it entails systemic changes. As precise pesticide application and green agricultural inputs become more critical, suppliers will need to improve not only their products but also the technical services to maintain their competitive advantages.

A significant aspect of the plan is disaster prevention and mitigation, driven by the need to address recurring climate risks. This marks a comprehensive upgrade of the modern governance system for agriculture and rural areas. Disaster prevention and mitigation is shifting away from relying on fiscal spending to proactive investments in disaster preparedness. Such a move will benefit the insurance and meteorological service industries.

In response to the plan, the market will largely focus on the seed industry in the short term. In the medium term, the sectors of farmland water conservancy and agricultural inputs are expected to see more orders. In the long run, efforts are needed to monitor and assess the performance in sectors such as crop farming services.

Agricultural modernization extends beyond production to encompass improvements in processing, distribution and branding. This helps reduce the risks for the crop farming industry and enables the industry to develop more high-quality products.

China is working to improve various agriculture-related sectors, including seeds, agricultural machinery, farm inputs, farmland development, green pest control, agricultural insurance and production services. The capital market should closely monitor how these policies will translate into business opportunities, investments and improved corporate performance.