No. 1 central document targets rural-urban development

China will continue to increase government funds to support the agriculture sector and its farmers. The first document's release aims to better coordinate urban and rural development in the country.

The first document stresses that China will perfect its current agricultural subsidy system, expand the scope of agricultural products, and add new subsidies.

The total subsidy of 2009 reached 12.3 billion yuan, increasing nearly 20 percent over the previous year, a new record.

A highlight of this year's first document is a new policy that encourages farmers to construct houses. It is aimed at boosting rural consumption.

Experts say rural consumption accounts for only 11 percent of the nation's total. Rural areas make up a huge potential market, and the demand for better housing could represent the biggest portion of that market.

Li Guoxiang, Agricultural analyst, said, "We've made a study. From the increase of farmers' annual income, 5 yuan will be used for daily necessities while 400 yuan will be used for household consumption."

Transforming the modes of rural development means China will transfer its original mode to a mode of modernization. The first document notes the transformation will depend on new technology, more investment, and increasing the land utilization.

Over-consumption of fertilizer and pesticide is the current problem in Chinese agriculture. In 2008 China used over 50 million tons of fertilizer and 1.6 million tons of pesticide.

The document said agriculture's development will be based on promoting urbanization of rural areas and speeding up the construction of modern villages. It includes faster construction of rural areas and small and medium size cities and while transferring more agricultural population to an urban population.