On September 7, six government departments jointly released the Implementation Plan for Prioritising Agricultural and Rural Development and Improving the Investment Mechanism for Rural Vitalisation. The plan, issued by the Ministry of Agriculture and Rural Affairs, the Central Rural Work Leading Group, the National Development and Reform Commission, the Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration, aims to further refine the investment framework for rural vitalisation and enhance the effectiveness of policies designed to strengthen agriculture and benefit farmers.

Official data shows that nationwide fiscal expenditure on agriculture, forestry, and water resources is projected to reach 2.35 trillion yuan in 2025, representing 2.48 times the level recorded in 2012. Loans related to agriculture have climbed to 53.57 trillion yuan, while active social capital participation has steadily expanded agricultural and rural investment. This multi-channel funding structure has played a critical role in safeguarding national food security, consolidating poverty alleviation achievements, boosting farmers' incomes, and supporting broader economic growth. A representative from the Ministry of Agriculture and Rural Affairs noted that the six departments drafted the plan to optimise the investment mechanism and improve the efficiency of agricultural support policies.

To establish a diversified investment framework for rural vitalisation, the plan outlines measures across six key areas: government funding, bonds, credit, insurance, private investment, and rural collective assets. A summary of the core provisions from a Financial Times report is provided below.

Ensuring Priority Government Allocation

On the front of government funding, the plan calls for prioritising general public budget allocations for agriculture and rural areas, optimising investment structures, focal points, and methods, and implementing policies that direct land transfer revenues toward agricultural and rural use. It strengthens compensation mechanisms for major grain-producing regions by introducing inter-provincial horizontal benefit transfers and improving reward policies for major grain-producing counties. Subsidies will become more targeted to protect farmers' enthusiasm for grain cultivation and encourage local governments to focus on food production. Existing funding channels will be utilised to support major agricultural infrastructure projects and rural living environment improvements, while advancing ecological civilisation and cultural development in rural communities.

The plan also ensures stable funding from central government normalised assistance and consistent input from provincial and municipal governments. Central fiscal support will maintain its scale to support ongoing rural development initiatives.

Leveraging Bond Funding for Agriculture

China's bond market, currently the second-largest globally, is being tapped further to support rural development. In 2025, the government has arranged 1.3 trillion yuan in ultra-long-term special treasury bonds, 800 billion yuan in new local government general bonds, and 4.4 trillion yuan in new local government special bonds. The plan calls for coordinating these various bond instruments to fund eligible rural infrastructure, industrial development, and public service projects. It emphasises a top-down approach that combines hardware and software improvements to advance major national strategies and projects in the agricultural sector.

Local governments are encouraged to use special bond funds for qualifying agricultural and rural projects, enhancing the quality of project reserves to maximise the role of special bonds in strengthening foundations, addressing shortcomings, and improving livelihoods. General bonds may also support eligible agricultural projects where local conditions warrant. Additionally, qualified companies are encouraged to issue rural vitalisation bonds to broaden funding sources.

Enhancing Credit Support Efficiency

Credit extended to rural areas continues to expand, with loans to rural households reaching 18.42 trillion yuan and loans to the farming, forestry, animal husbandry, and fishery sectors hitting 6.89 trillion yuan in 2025. The plan introduces a special initiative to deepen financial support for rural vitalisation, employing monetary policy tools to encourage financial institutions to provide credit for rural development without increasing hidden local government debt. Credit allocation will be optimised to direct funds toward major grain and oil-producing counties, seed production counties, and key counties receiving rural vitalisation assistance.

Priority lending will focus on ensuring stable grain production and supply, vital rural industries, agricultural infrastructure, and agricultural technology innovation. Poverty alleviation micro-credit policies will be implemented to support those at risk of falling back into poverty and previously registered impoverished households seeking to develop production and increase income. Banks are encouraged to innovate and promote credit products tailored to agricultural and rural needs, expanding first-time loans, unsecured credit, and loan rollover programs. Credit support will also extend to agricultural product brokers and farmer cooperatives engaged in production and sales logistics.

The plan proposes improving agricultural asset assessment mechanisms, establishing management systems for ownership certification, value evaluation, mortgage registration, and asset disposal. It promotes mortgage financing for live livestock and agricultural facilities, while developing collateralised financing for agricultural machinery, warehouse receipts, and operational rights. Digital finance in rural areas will be enhanced, with expanded investment and financing matchmaking services through credit market service platforms, direct credit channels for agricultural operators, and financing project databases for agricultural infrastructure.

Utilising Insurance Policy Tools

Agricultural insurance has achieved remarkable scale, with premiums surpassing 155 billion yuan in 2025, ranking first globally. The sector provides risk protection exceeding 5.2 trillion yuan for 125 million farmers. The plan calls for building a comprehensive multi-tier agricultural insurance system and accelerating high-quality development in this sector. Insurance for major crops vital to national food security will be strengthened, fully utilising policies for full-cost and planting income insurance covering rice, wheat, corn, and soybeans.

Support will be provided for developing insurance products tailored to local specialty agricultural products to stabilise farmers' earnings. Insurance companies are encouraged to enrich their product portfolios and expand agricultural insurance offerings, including farmland insurance, agricultural machinery insurance, and personal insurance for rural residents. These efforts align with market principles to support the entire agricultural industry chain. Localities with adequate conditions may reduce the county-level premium subsidy burden for agricultural insurance in key counties receiving rural vitalisation assistance. The plan also promotes precise insurance underwriting and claims settlement, with insurers encouraged to participate in disaster relief and emergency management systems through early warning services and risk reduction initiatives that improve service quality.

Stimulating Private Investment Vitality

Private investment plays a significant role in stabilising employment and the economy. In 2025, private fixed-asset investment in the primary industry reached 526.4 billion yuan, accounting for 55% of total primary industry fixed-asset investment. The plan aims to leverage private investment in rural vitalisation, guiding private capital to participate lawfully and orderly. Following legal and market-based principles, a combination of loan interest subsidies and investment-debt integration will be employed to encourage patient capital investment in agriculture and rural areas.

Measures will be refined to encourage public welfare and charitable organisations to contribute to rural development. The plan supports establishing rural vitalisation funds through market-based approaches, leveraging financial capital and social resources. Qualified agriculture-related enterprises will receive support for listing and financing, enabling leading agricultural technology firms to accelerate development through multi-tier capital markets.

Activating Rural Resource Assets

To activate rural resource assets, the plan proposes strengthening the leadership mechanism of rural grassroots Party organisations. Rural collective economic organisations will be encouraged to explore various development paths for the new rural collective economy, including resource contracting, property leasing, intermediary services, and equity participation in profit-generating assets. These approaches aim to enhance their self-development capabilities. The plan calls for accelerating the construction and application of rural property rights trading and financing service platforms.

A unified registration ledger will be established for assets formed through national poverty alleviation investments, with innovative project operation models to promote effective asset revitalisation and utilisation. These efforts will maintain the linkage between farmers and industry development. Management of rural collective funds, assets, and resources will be deepened, guiding collective economic organisations to standardise investment behaviour, carefully select operational approaches, and conduct business prudently. Qualified agricultural projects are supported in issuing real estate investment trusts (REITs) for infrastructure investments. Enterprises are encouraged to collaborate with village collectives through village-enterprise partnerships to construct and operate renewable energy projects, including photovoltaic, wind, hydroelectric, and biomass energy facilities in rural areas.