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Chinese farmers saw their net incomes grow to 3,587 yuan ($460) last year, representing the third consecutive year of 6 percent year-on-year growth, said Xie Fuzhan, head of the National Statistics Bureau.

"This is a big leap forward compared with their earnings in the past," Xie said during a press conference yesterday to mark the release of the statistical communique on last year's national and social development.

Xie attributed the increase to the government's efforts to drop agricultural taxes and find employment for farmers in the cities.

"The past year was the first in which farmers did not have to pay agricultural taxes that had been in place for about 2,600 years," said Xie.

"The exemption relieved them of an economic burden of 100 billion yuan ($12.8 billion)."

In addition, the country's strong economic growth has accelerated the shift of rural labor from the low-productivity agricultural sector to the relatively profitable second and tertiary industries, which has also raised farmers' incomes, Xie said.

The per-capita salary income of farmers last year was 1,375 yuan (173.9), 200 yuan ($25.6), or 17 percent more than in the previous year.

Their per-capita agriculture income increased by 53 yuan ($6.79) last year, representing an increase of 3.6 per cent compared with 2005.

Their household income from home-based second and tertiary industries increased by 35 yuan ($4.48), up 9.3 percent from 2005.

And government subsidies for agricultural labor and machines increased by 181 yuan ($23.2), 33 yuan more than in 2005.

"These measures reflect the central government's determination to increase the income of farmers," Xie said.

But Xie added that the sheer number of farmers in China means that their incomes will increase only gradually.

Meanwhile, grain production picked up last year, according to the communiqu, with output hitting 490 million tons, 6 million tons more than the previous year.

The value added of the primary industry was 2.47 billion yuan ($249 billion), up 5 per cent year-on-year.

The value added is a measure of gross output minus cost of materials and supplies, fuel and electricity.

Cotton output climbed 17.8 percent year-on-year to 6.73 million tons, while meat output hit 80 million tons, up 4.5 per cent.

Despite harvests in major food categories, the communiqu still concluded that instability in the agriculture industry, difficulties in maintaining the growth of grain production and rural household incomes were still major problems.

(China Daily January 26, 2007)