2. In 2003, the State Council issued "Opinions on Several Policies to Increase Farmers' Income", stipulating that the state will fully open the grain purchase and sale market from 2004.

(1) Strengthening the construction of grain production capacity in major producing areas At present, the problem of low grain yield per unit area and difficulty in increasing farmers' income in major producing areas is particularly prominent, and effective measures must be taken to solve it as soon as possible. Grasping the problem of increasing farmers' income will grasp the key point of increasing farmers' income; Mobilizing farmers' enthusiasm for growing grain will seize the root of grain production; Protect and improve the grain production capacity of the main producing areas and stabilize the overall grain situation in the country. From 2004, the state will implement the high-quality grain industry project, select some large grain counties and state-owned farms with foundation and potential, and focus on building a number of national high-quality special grain bases. Efforts should be made to support the main producing areas, especially the central grain producing areas, to focus on the construction of basic farmland with stable and high yield. Expand the implementation scale of fertile soil projects and continuously improve the quality of cultivated land. Strengthen the construction of improved seed breeding and pest control projects for bulk grain crops, strengthen the ability of technology integration, and give priority to supporting the promotion of a number of excellent varieties and advanced and applicable technologies that have great influence in the main producing areas. Focus on farmland capital construction, speed up the construction of small and medium-sized water conservancy facilities, expand the effective irrigation area of farmland, and improve the ability of drainage and drought resistance. Improve the level of agricultural mechanization, and give certain subsidies to individual farmers, farm workers, agricultural machinery specialized households and agricultural machinery service organizations directly engaged in agricultural production to purchase and update large-scale agricultural machinery.

(2) Support grain transformation and processing in major producing areas. The main producing areas should rely on the advantages of grain to increase farmers' income and regional economic development, and make the grain industry bigger and stronger according to market demand. Make full use of the rich feed resources in the main producing areas, actively develop animal husbandry in agricultural areas, support farmers and enterprises to buy excellent livestock and poultry and select improved varieties through small loans, discount subsidies and insurance services, and promote food value-added through the development of aquaculture. In accordance with the requirements of the national industrial policy, guide the rational distribution of agricultural products processing industry, support the development of agricultural products processing industry with grain as the main raw material in the main producing areas, and focus on the development of intensive processing. The state supports the establishment and transformation of a number of large-scale agricultural products processing, seed marketing and agricultural science and technology enterprises in the main producing areas through measures such as technical transformation loan discount, investment and equity participation, and tax policy.

(3) Increase investment in major grain producing areas. The existing agricultural fixed assets investment, agricultural comprehensive development funds and land reclamation funds should be relatively concentrated and tilted towards the main grain producing areas. We will continue to increase funds for comprehensive agricultural development, and the new part will be mainly used in major producing areas. In order to effectively support the main grain producing areas to revitalize the economy and increase farmers' income, we should open up new sources of funds. Since 2004, a certain proportion of state-owned land transfer fees have been determined to support agricultural land development, build high-standard basic farmland and improve comprehensive grain production capacity. The main sales areas and the production and marketing balance areas should also strengthen the construction of grain production capacity. Further close the relationship between production and marketing areas. Business entities in grain marketing areas shall enjoy the relevant state support policies for the main producing areas when establishing grain production bases, storage facilities and processing enterprises in the main producing areas. Grain enterprises in producing areas should establish storage, processing and other facilities in marketing areas, explore the grain market, and the marketing government should support them and implement the necessary preferential policies.

(IV) Deepening the reform of the grain circulation system Since 2004, the state will fully liberalize the grain purchase and sale market and implement multi-channel operation. Relevant departments should promptly clean up and revise policies and regulations that are not conducive to the free circulation of grain. Accelerate the reform of state-owned grain buying and selling enterprises, change the operating mechanism of enterprises, improve the spot and futures markets of grain, prohibit regional blockades, do a good job in cooperation between production and marketing areas, optimize the layout of reserves, and strengthen the management and macro-control of grain markets. At present, the main grain producing areas should pay attention to the role of state-owned and state-controlled grain buying and selling enterprises as the main channel. In order to protect the interests of grain farmers, it is necessary to establish a direct subsidy system for farmers. In 2004, the state allocated some funds from the grain risk fund for direct subsidies to grain farmers in the main producing areas. Other regions should also provide direct subsidies to grain farmers in major grain-producing counties (cities) in this province (autonomous regions and municipalities). Based on the principle of mobilizing farmers' enthusiasm for growing grain, we will formulate implementation measures that are easy to operate and supervise to ensure that subsidy funds are truly implemented in farmers' hands.