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1. Project Summary and Relationship to China's Agenda 21

This project aims at achieving the highest possible agricultural output and best environmental protection through the development of eco-agricultural projects, the extension of the application of eco-agricultural technologies and the implementation of relevant measures so as to improve the technical level and profit of those eco-agricultural demonstration zones, maintain a benign cycle for economic and ecological development and promote sustainable development of China's agriculture and rural economy.

This project is based on programme areas 11A, 11E and 11F of China's Agenda 21, and is related to programme areas 11B, 11C and 11D.

2. Background

As a big agricultural country with a huge population, China has 7% of the worldís arable land and 22% of the world population, of which 71% are engaged in agriculture. Along with the population increasing and economic growth, the contradiction between people and land is becoming ever more prevalent. Therefore, China must improve its operation, use resources more efficiently and increase yields, in order to ensure the effective supply of agricultural produce now and forever. Meanwhile, China's agricultural development is also faced with environmental problems such as resource degradation, biodiversity decrease and farmland pollution. This reality has determined that while developing China's agriculture we must stick to the principle of sustainable development, making all efforts to protect resources and environment.

China's eco-agriculture is organised, developed and managed according to ecological theories. Eco-agriculture models like mulberry-based pond fishery and fish raising in paddy field have existed in China for thousands of years. Modern eco-agriculture, an update of the traditional model, combines the best of traditional agricultural technology with modern agricultural technology and thus is an environmentally friendly, technically advanced, economically viable and well-accepted model for rural economy. Starting from the 1980s, China has conducted extensive research and demonstration activities for the purpose of searching for a good development model for sustainable agriculture. Great achievements have been made in the development of eco-agriculture. In October 1994, the State Council approved the ìReport on Speeding up the Development of Eco-agriculture", which put forward specific policies, technological and funding measures for further development of eco-agriculture in China. The Ninth Five-Year Plan and Long-term Targets for the Year 2010 also contain specific requirements for ìall-out development of eco-agriculture." Eco-agriculture, as an effective way towards materialising sustainable development strategies, has become an important part of China's Ninth Five-Year Plan and Long-term Targets for the Year 2010.

Eco-agriculture in China started with demonstration villages and townships and gradually evolved into demonstration counties. Every year around 20 million yuan is spent by the national and provincial governments on eco-agriculture and governments at all levels are mobilising enormous human, physical and financial resources for eco-agriculture. Farmers' participation and willingly investment have become an important factor in the development of eco-agriculture in China. At present, there are about 150 eco-agriculture demonstration counties and 2000 demonstration counties, townships and villages in all of China. Good economic, ecological and social benefits achieved have caught the attention of Chinese governments at all levels and is welcomed by the people. Since 1982, 7 eco-agriculture demonstration sites in China have been awarded by UNEP as among the Global 500, thus becoming models of the development of sustainable agriculture for the whole world and laying as a sound foundation for the execution of this project.

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3. Objectives

3.1 Long-term Objective

To build up China's capacity for sustainable agricultural development and improve management and technical systems. Through execution and extension of the demonstration project in 10 counties of 4 different ecological zones, the project aims at satisfying the demand by the growing population for more farm products and achieving co-ordinated development of the society, economy, population, resources and environment.

3.2 Immediate Objectives

• To promote the establishment and improvement of China's legal and policy framework for the development of sustainable agriculture and strengthen the capacity for sustainable agricultural development.
• To establish optimally structured and technically advanced eco-agriculture demonstration projects and models for the purpose of pushing forward eco-agriculture development nation-wide.
• To promote agricultural development in demonstration zones, increase farmers' income, improve farmers' technological and educational levels and strengthen their awareness of sustainable development.

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4. Outputs and Activities

4.1 Strategies for sustainable agricultural development in China and the supporting system

• Based on China's Agenda 21 and the Ninth Five-Year Plan and Long-term Targets for the Year 2010, to formulate the strategies for sustainable agricultural development in China, namely, China's Agenda 21: Action Plan for Agriculture, and the Development Framework for China's Eco-agriculture.
• To formulate environmental protection and resource conservation laws including the Law for the Control of Pollution by Township Enterprises, Law for the Protection of Basic Farmland and the Law for the Control of Pollution by Farm Chemicals, improve standards and regulations for the protection of agricultural environment and strengthen law enforcement through the existing agricultural environmental protection network.

Monitoring Indicators: Strategies, regulations such as China's Agenda 21: Action Plan for Agriculture, the Development Framework for China's Eco-agriculture and the Law on the Protection of Farmland, etc.

Implementing Agencies: Ministry of Agriculture and relevant agencies.

Time Schedule: December 1996 - December 1997

4.2 Eco-agriculture demonstration in decertified zone

• To implement a demonstration project in Wengniute banner of Inner Mongolia, a typical area with degraded pasture and desert soil in North China, integrating agriculture, forestry and animal husbandry and building artificial enclosed pasture.
• To implement a demonstration project in Yanían city, Shaanxi province, a typical soil erosion area in the Northwest Loess Plateau, focusing on fine-quality fruit production and comprehensive watershed management.

Monitoring Indicators: 20% of the annual growth rate of rural income; 3,000 yuan of the annual per capita net income of farmers; 85% of the soil erosion control rate and 60% of forest coverage rate.

Implementing Agencies: Ministry of Agriculture and the relevant agencies.

Time Schedule: June 1997 - December 2000

4.3 Eco-agriculture demonstration in the zones with rich resources and integrated development and conservation

• To implement a demonstration project in Baiquan county, Heilongjiang province, a typical hilly and plain area in Northeast China with rich resources, focusing on water and soil conservation by multi-level forest building and integration of agriculture and animal husbandry.
• To implement a demonstration project in Jingshan county, Hubei province, a typical hilly area in Central South China with rich resources, focusing on integration of agriculture, forestry and animal husbandry and three-dimensional development of resources.
• To implement a demonstration project in Dafeng county, Jiangsu province, a typical coastal area rich in beach land resources, focusing on combining farming and animal husbandry, as well as resource reserve construction and agricultural products and by-products processing so as to utilise tide flat resources.
• To implement a demonstration project in Loudi Prefecture, Hunan province, one of the earliest pilot sites developing eco-agriculture and also a typical hilly and plain area in South China, focusing on the use of ecological cultivation techniques and biogas.

Monitoring Indicators: an increase of over 35% in the total agricultural output value; an increase of 0.4% of the organic matter content of the farmland in 5 years; 33% higher of the annual per capita net income of farmers than that of the local average; and 72% of the forest coverage rate reached.

Implementing Agencies: Ministry of Agriculture and the relevant agencies.

Time Schedule: June 1997 - December 2000

4.4 Eco-agriculture demonstration in the zone with high-yield and intensive agriculture and resource conservation and environmental protection

• To implement a ìvegetable basket" project to demonstrate eco-agriculture in Daxing county of Beijing Municipality, a typical suburb of a municipality with high-level agricultural modernisation. Its major tasks are to build up high-yield ecological farmland, adopt protected cultivation and construct mid- and large-sized biogas projects featuring high yield and fine quality.
• To implement a demonstration project in Linzi District of Zibo city, Shandong province, a typical high-yield area in the Huang-huai-hai Plain, integrating farming, and animal husbandry in a large scale.
• To implement a demonstration project in Tunchang county, Hainan province, a plain area producing tropical crops, focusing on three-dimensional high-yield farming and agro-forestry.

Monitoring Indicators: 100,000 ha. production base for high-yield high-quality fruits and vegetables established, 18% of the households having biogas digests and 150 energy-environmental projects constructed using biogas.

Implementing Agencies: Ministry of Agriculture and the relevant agencies.

Time Schedule: December 1996 - December 2000

4.5 Eco-agriculture demonstration in pollution treatment zone of cities and towns with heavy industry

• To implement a demonstration project in Benxi city, Liaoning province, a typical city with heavy industry in Northeast China, focusing on afforestation, water and soil conservation in mountainous areas, control of the ìthree industrial wastes" and agro-forestry in cities and suburbs.

Monitoring Indicators: With the demonstration area accounting for 60% of the total, the annual per capita net income of farmers in the area exceeding 2,000 yuan, forest coverage rate increased to 65%, pollution treatment rate in enterprises ( including rural enterprises ) reaching 80% and 95%.

Implementing Agencies: Ministry of Agriculture and the relevant agencies.

Time Schedule: June 1997 - December 2000

4.6 Training on and extension of research findings on development model for China's eco-agriculture

• To summarise models and technology for eco-agriculture which are applicable to various regions, and to establish a system of evaluation indicators for eco-agriculture and an information network for eco-agriculture project management.
  
• To compile a series of teaching materials such as a Textbook on China's Eco-agriculture, Practical Manual on Eco-agriculture, and to conduct training on the policy of sustainable agriculture, related technology as well as resources management. The trainees will be mainly administrative staff, technicians and farmers in the demonstration area. Agricultural scientists and scholars from other developing countries will also attend training courses.
• To establish training and technological extension networks for China's eco-agriculture, based on current extension network of agricultural techniques, in order to popularise the technological models.

Monitoring Indicators: training materials such as "Textbook on China's Eco-agriculture"; 500,000 persons trained

Implementing Agencies: Ministry of Agriculture and the relevant agencies.

Time Schedule: June 1996 - December 2000

5. Inputs

5.1 Chinese Inputs

The Chinese inputs will be mainly used for project management, construction, technical extension and development, transportation and office facilities and other operational expenses for project managers.

5.2 International Inputs

The international inputs will be mainly used for technology import, personnel training, equipment purchasing and part of the construction.

5.3 Budget

The total capital needed for this project is US$ 42 million. The Chinese participants will raise US$ 28.7 million from domestic source, while foreign resources will cover the other US$ 13.3 million.

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Table 1. Budget by Item (in million US dollars)

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Table 2. Budget by Output (in million US dollars)

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6. Benefits

The formulation of China's Agenda 21: Plan of Action for Agriculture and the Development Outline for China's Eco-agriculture will set the strategic policy for the sustainable development of China's agriculture and provide the policy-making basis for the long-term development of China's eco-agriculture.

The annual average growth rate of the production of major agricultural products in the demonstration area will be 4-5% higher than that in other similar areas, annual average growth rate of farmers' per capita income 8-10% higher, loss from natural disasters 15-20% less, utilisation rate of major production factors 15-20% higher, utilisation rate of farm by-products and wastes 25-30% higher, forest coverage rate 2-3% higher and public revenue from agriculture 5-6% higher.

The eco-agricultural demonstration bases built at the county or above level in the different ecological zones for the demonstration project will increase local grain production and farmers' per capita income, improve the educational level of farmers and their acceptance of the concept of sustainability, and at the same time influence agricultural development and provide demonstration models for eco-agriculture in different ecological zones of the whole country.

The implementation of the training and extension programs for the sustainable development of China's agriculture will train a large group of agricultural scientific and technical personnel, administrators and farmers and strengthen after-strength for further development. At the same time, it will also provide experiences, models and technology for the sustainable development of agriculture in other developing countries and make contributions to the sustainable development of world agriculture.

7. Risks

The implementation of the project will face many uncertain factors such as climatic and geographical conditions. However, these risks can be reduced to the minimum through strengthened information management, pre-warning and forecasting during project implementation.

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