Village companies lift farmers out of poverty

Zheng Tufeng, a villager from Huangtang Village, Xinchang Town, Changshan County got a job at the village tourism company. She had been living under the poverty line for years, but now in her sixties, Zheng was able to make a monthly salary of more than 2,000 yuan. Zheng’s husband suffered from poor health, the family used to be among the last group of farmers living under the poverty line, making less than 4,600 yuan a year.

Huangtang Village is in the northeastern mountainous area of Changshan County, known for having a concentrated poor population. In 2014, the village and its residents raised funding to found the Zhejiang Huangtang Tourism Company and created several tours such as drifting and grass skiing. More than 100 villagers were able to find employment near home, many of whom were low-income farmers. So far they received 1.3 million yuan of payment in total. Aside from those who contributed to the fund, other villages also benefited from the project, and the average per capita income in Huangtang Village increased by 2,400 yuan within a year, while the village collective’s income increased by eight folds.

Changshan County set out to combat poverty by providing more than just financial aid. It encouraged villages to set up companies. With village cooperatives as the main entity, villages helped residents to increase income by providing employment and allowing share dividends. Villages became more motivated, they took over the poverty alleviation mission from local governments, compared to which village committees were able to gain more accurate information of low-income farmers, which made the campaign more effective and targeted.

Xiayouge Village, Fangcun Town is also located in a mountainous area. Young males from the village mostly left home to work as migrant workers, while those left behind became low-income farmers on the deserted land. The village founded the Niujiao Agricultural Development Co. Ltd, and offered shares to residents leasing out land. “I lease out the land, enjoy the dividends, plus I have a job, like this I have income from three different sources.” XuYujin used to be a low-income farmer in the village. He and his wife suffered from poor health and couldn’t do heavy labor. Their son suffered from a chronicle liver disease and was paying an expensive medical bill. Xu leased out his 1.5 mu of land and received a rent of 700 yuan per mu annually. In 2014 the family received a 1,000 yuan dividend. Considering his family’s situation, the company also found him an easy job, which guaranteed Xu a monthly salary of 2,000 yuan.

So far, Niujiao Agricultural Company owned 800 mu of land, more than 96% of the farmers became shareholders, and all 35 households in the village making less than 4,600 yuan a year were in equity participation. Niujiao employed 30 local villagers, 10 of which were from low-income families, and now their average annual income reached 30,000 yuan. Eventually, Xiayou lifted its villagers out of poverty and led them to a better life.

In BaishiTown, seven villages together founded the Changshan County Xuanfeng Rural Construction Investment Co.,Ltd, creating employment opportunities for low-income farmers. Within six months, the company had contracted businesses ranging from sanitation to agricultural products cultivation. More than 40 low-income farmer households went into the planting business, and more than 80 low-income farmers found jobs with the company.

There were more than 20 such village companies and cooperatives in Changshan County. They helped lift farmers out of poverty by setting up e-commerce businesses, through ecological migration and providing low-income subsidies. So far, all 15,000 low-income farmers in the county were lifted above the poverty line, making more than 4,600 yuan a year.