Agricultural Adjustment in China: Problems and Prospects

Abstract

Because of the low income elasticity of demand for farm products and the ability of farmers to increase labor productivity, economic growth requires that farm employment decline if farmers are to share in the benefits of such growth. In 1952 approximately 84 percent of China's workers were engaged in agriculture; in 1997 the figure had declined to 41 percent. By 2030 farm employment may account for only 10 percent of the total. The productivity of farm labor must increase at a rapid pace if the 63 percent decline in farm employment does not adversely affect the rate of growth of farm output.