Guotaijunan Economy analyst Zhang Han, in his report on the agricultural supply-side reform, said that 2017 agricultural side reform will not shock agricultural prices as industrial supply-side reform did in 2016. He said that the reform is a long term progress, with an ultimate goal of securing the agricultural products. Unlike industrial products, agricultural products are always distributed widely across the country and, therefore, are relatively difficult for the supply-side reform policy to be effective on individual suppliers. Additionally, reserves of agricultural products also ensures a price stability. He said the key in agricultural supply-side reform is to keep the price stable.
I believe that China agricultural supply side reforms needs to take into account a multitude of inter-related factors that spill over into other sectors of the economy. China needs to find the optimum number of rural residents that will, at the same time, 1) ensure food supply; 2) rise income for farmers so that agriculture becomes an attractive industry as it is in other parts of the world; 3）maintain economic growth even in the absence of rural-to-urban migration; 4) clean up polluted waters and land; 5) clarify land rights, leasehold length. Quite a challenge.