3. We will work harder to balance urban and rural development and consolidate the foundation for developing agriculture and the rural economy and increasing rural incomes.

1) We will work hard to ensure production of major agricultural products. We will continue to strictly protect farmland, intensify its development, especially primary farmland, keep the total grain acreage stable, optimize the structure of crop varieties, increase the yield per unit of area and, improve grain quality. In 2010, we will strive to keep the country's grain output stable at 500 million tons, and the output of cotton, oilseed and sugar crops will reach 6.7 million tons, 31.5 million tons and 125 million tons, up 4.7%, 1.6% and 2.5% respectively. We will fully implement the plan to increase China's grain production capacity by 50 million tons, intensify the development of cotton, oilseed and sugar crop production bases, raise the level of agricultural mechanization, and develop drought-resistant agriculture, protected agriculture and conservation tillage in light of local conditions. We will improve 1.653 million hectares of low- and medium-yield farmland, a year-on-year increase of 1.6%. We will improve the policies of subsidies and rewards for agricultural production and stabilize the production of staple agricultural products. We will continue to develop the system for cultivating superior varieties and breeds, the system for preventing and controlling animal and plant epidemics, the system for disseminating agricultural technology at county and township levels, and the system for quality and safety inspection and testing of agricultural products. We will carry forward the national projects to demonstrate modern agriculture and to develop modern agricultural production, and support the development of large-scale, standardized hog and cow farms. The output of meat and aquatic products will reach 78 million tons and 52 million tons in 2010, up 2.1% and 1.6% respectively. We will support efforts to upgrade and renovate storage and distribution facilities for staple agricultural products and major wholesale markets for agricultural products and develop cold chain logistics for agricultural products.

2) We will work hard to bring about a steady increase in rural incomes. We will raise minimum grain purchase prices, and the average floor prices for the purchase of wheat and rice will rise by 3 yuan and 6 yuan (10 yuan for un-husked japonica rice) per 50 kilograms, respectively. We will improve the mechanism for purchasing and stockpiling important agricultural products. We will raise the subsidies for purchasing superior crop varieties, increase the amount and types of subsidies for purchasing agricultural machinery and tools, and implement a dynamic mechanism to adjust general subsidies for agricultural supplies. We will vigorously develop the system under which various sectors of society provide services for agriculture and rural areas, improve the organization of agricultural production and operations, and help leading enterprises improve their roles of serving as shining examples and stimulating development. We will energetically develop secondary and tertiary industries in rural areas and strengthen county economies. We will step up job training for rural residents seeking non-agricultural employment, improve the environment for rural migrant workers to find jobs or start their own businesses, and do our utmost to help rural residents seek employment in a variety of non-agricultural sectors. We will strive to ensure more than 6 million rural residents receive training for non-farm jobs this year.

3) We will make steady progress in building a new countryside. We will continue to improve working and living conditions in rural areas. The central government will increase capital construction investment in projects to improve the well-being of rural people, such as the construction of water supplies, power grids, roads, methane facilities and housing. A total of 20 billion yuan will be allocated to provide safe drinking water to another 60 million rural residents and ensure 71.5% of the rural population will gain access to tap water this year. Twelve billion yuan will be used to upgrade rural power grids. Three billion yuan will be spent on renovating rural roads. A total of 5.2 billion yuan will be earmarked to accelerate the development of household methane generators, large and medium-sized methane facilities and central methane stations in rural areas. We will continue to improve rural infrastructure. We will accelerate the progress of the projects to build auxiliary facilities and upgrade water-saving devices in large and medium-sized irrigated areas and complete the task to reinforce a total of 6,240 large and medium-sized reservoirs and dilapidated key small reservoirs as scheduled. We will strengthen fishery administration and improve fishing harbors. We will carry out the project to build a clean rural environment. We will vigorously press ahead with comprehensive rural land development. We will improve our ability to provide public services in rural areas, including education and training, medical and health care, and cultural services, and speed up efforts to promote wide IT application and universal communications services in the countryside.

4) We will actively promote urbanization. We will accelerate the development of small and medium-sized cities and small towns, improve urban public utilities such as gas, heat and water, and increase the overall carrying capacity of cities. We will relax requirements for household registration in towns and small and medium-sized cities. Where conditions permit, cities will be encouraged to grant urban household registration to rural migrant workers holding a steady job with a steady income in the city, and to their children as well, and incorporate them into the urban public service system. We will improve the employment, housing, medical care and other basic living conditions for rural migrant workers and ensure their children receive a school education.