Blockchain And Agriculture

THE POLICIES OF BLOCKCHAIN TECHNOLOGY AND ITS USE IN RURAL ASSETS MANAGEMENT IN CHINA

Seeking opportunities for blockchain solutions of agriculture in China

Background

The 19th National Congress of the Communist Party of China put forward the strategy of Rural Revitalization, and the development of the rural collective economy is an important measure of Rural Revitalization. In order to protect the economic rights and interests of farmers, broaden the channels of increasing farmers’ income, promote the collective economy to be bigger and stronger, and strengthen the market vitality and competitiveness, a national letter issued called for “Political and Economic Separation” that the social functions allot to villagers committee, economic functions belong to and as a new form of collective economic organization.

On December 26, 2016, the CPC Central Committee and The State Council issued opinions on Steadily Advancing the Reform of the Rural Collective Property Rights System.

The Opinions made clear the key tasks of the reform, including comprehensively reviewing the assets of all types of collectively-owned assets and improving the book management system. Starting from 2017, the reform will be basically completed in about three years. On this basis, the operational assets will be quantified and allot to collective members in the form of shares, and the reform of the shareholding cooperative system of operational assets will be promoted in an orderly approach, and the reform will be basically completed in about five years.

In September 2017, the Ministry of Agriculture and the Agricultural Office of the CPC Central Committee decided on the Pilots Units to reform the rural collective property rights system in 2017.

100 counties (county-level cities and districts), including the Haidian District of Beijing, were designated as pilot units for the reform of the rural collective property rights system in 2017, which focuses on five aspects: confirming the membership status of rural collectives, promoting the reform of the shareholding cooperative system of operational assets in an orderly approach, giving farmers the right to the shareholding of collective assets, giving play to the function and role of rural collective economic organizations, and developing collective economy in various forms.

On March 29, 2017, in Shanxi Province, people’s government at the general office document issued by the established on the rural collective property right system reform in Shanxi work leading group notice (Jin Government Issues [2017] no. 39), in charge of the provincial governor coalesced, full deployment of the rural collective property rights system reform, the work to coordinate to solve a major policy issue existing in the work of reform.

On October 18, 2017, in a document issued by the provincial party committee and government, the “Shanxi Province to promote the rural collective property rights system reform implementation plan” (Jin Issues [2017] no. 55), specify that city, county, and township levels to be set up by the secretary of the party committee, government principal coalesced and deputy team leader, the reform of the relevant department head for members working for the leading group, The leading group shall have an office. The deputy secretary or the deputy head of the city or county (city or district) shall serve as the office director of the leading group at the city or county level.

On February 23, 2018, nine-bureaus jointly issued by the agriculture department, financial department in Shanxi Province, Shanxi provincial land and resources, Shanxi provincial water resources bureau, Shanxi Province education department, Shanxi Province cultural department, health and family planning committee of Shanxi Province, Shanxi Province sports bureau about promoting comprehensively carry out the work of the rural collective assets means of notice (Jin agricultural economy Issues [2018] №2), including the notice, rural collective assets liquidation verification and capital method, rural collective assets liquidation verification and capital statement, rural collective assets liquidation and capital statement filing instructions, etc.

Pilot units of rural collective property rights system reform of ministry of Agriculture and Central Agricultural Office in 2017, 2018 and 2019;

  • 2017: Taiyuan Xinghualing District, Taiyuan Jinyuan District, Xiangyuan County;
  • 2018: Yangquan City, Xinzhou City, Tunliu County, Qinshui County, Daning County, Hejin City;
  • 2019: Yuncheng city, Changzhi City, Luliang City, Jinzhong City, Jincheng City, Shuozhou City, Gujiao City, Taiyuan Jiancaocao District, Taiyuan Wanbolin District, Huozhou City, Quwo County, Pu County, Xiangfen County, Lingqiu County.

ID Registration And Bank Account Opening

Agricultural and rural administrative departments at the county level shall be responsible for issuing registration certificates to rural collective economic organizations under their respective administrative areas and assigning unified Social Credit Number. After the registration of rural collective economic organizations, the registration Certificate of rural collective economic Organizations shall be obtained. Rural collective economic organizations may, on the basis of this, go through relevant procedures such as opening bank accounts with relevant departments, so as to better play their functions and functions in managing collective assets, developing collective resources, developing collective economy, and serving collective members.

  • On May 11, 2018, the Ministry of Agriculture and Rural Affairs, the People’s Bank of China, and the State Administration for Market Regulation jointly issued the Notice on The Registration and Coding of Rural Collective Economic Organizations (Agricultural Economic Development [2018] №4).
  • On September 30, 2018, the General Office of the Ministry of Agriculture and Rural Affairs issued the Notice of the General Office of the Ministry of Agriculture and Rural Affairs on Matters Related to the Registration Certificate for The Use of Rural Collective Economic Organizations (Political Reform [2018] №3 of the Ministry of Agriculture).
  • On November 5, 2018, the national Rural collective Economic Organization registration number management system was officially launched.

Policies With Blockchain Technology

The Ministry of Agriculture and Rural Affairs and The Office of the Central Cyberspace Affairs Commission issued the Plan for Digital Agriculture and Rural Development (2019–2025) on December 25, 2019.

It is proposed to use digitalization to drive agricultural and rural modernization, build basic data resource systems, including building big data of rural collective assets, building big data of rural homesteads, and improving big data of farmers and new agricultural operation subjects. The plan also proposes to advance the layout of blockchain technology as a strategic frontier technology, strengthen the standardization research of agricultural blockchain, and accelerate breakthroughs in core technologies such as large-scale networking of agricultural blockchain and on-chain data collaboration.

In combination with the planning content, blockchain technology will serve as the basic data resources system of agriculture and rural areas construction infrastructure technology, help to realize the “rural” with assets approval and deposit certificate, the data sharing, tracking, and monitoring, accelerate the “Rural Assets” with digital construction, and to blockchain technology as “rural” with digital assets platform infrastructure technology, it is the future development trend of the system construction of “Rural Assets”.

Seeing from the policies and background, we can tell that blockchain technology has great potential for growth in its adoption in China; meanwhile, the blockchain development market still has billions of growth in the short future.

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