Yunnan Ethnic Areas Agro-ecological Compensation Mechanism

As the foundation of the national economy，agriculture in China makes asignificant contribution to the development of industrialization and urbanization byproviding lots of production-factor resources. But for a long time, people only payattention to economic functions of the agriculture and ignore its ecological function.In the context of increasing severe agri-ecological and environmental situation inYunnan, and even in China, this paper finds that agri-ecological compensation (AEC)in China is behind the international advanced level both in research and practice, andthere is lack of systematic research on AEC in minority areas. Furthermore, given thecondition of those regions, it’s extremely urgent to conduct such research there.Hence, through this paper, I hope to find effective mechanism and measures toprovide the AEC in those regions, and to provide theoretical support in improving thesystem and methods of the AEC in China.Based on the summary of the relevant researches and practices of the AECtheories in China and abroad and the discussion of the basic AEC theories andconceptions, this paper uses the data collected by surveys, and in-depth interviews aswell as fieldwork observation to discuss the case of Yuanyang county regarding theAEC. It further studies impacts of social, economic and cultural factors on theconstruction of the AEC system in the minority areas. It analyses the constructionconcept, basic frame and security system of the AEC in minority areas. Finally, it putforward a few policy suggestions. The paper concludes:Firstly, the essence of AEC in minority areas is an adjustment and incentivesystem for guaranteeing their agricultural sustainable development that utilizes acomprehensive approach in economy, policy, technology and market. It restraintsenvironment vandalism and stimulates peasants to provide high quality agriculturalproducts from good environments. It also encourages beneficiaries to buy thoseproducts, thus adjusting the relationships among stakeholders and solve externalproblems caused by related activities.Secondly, the AEC systems are different due to regional disparity. This requires that the study of the AEC system should take regional conditions into account, andmuch attention should be paid to economic, social and cultural factors on the AEC.This paper argues that the basic framework of the AEC in minority areas should becomposed of hierarchy of compensation, stakeholders, standard of compensation,period and scope of compensation, way and payoff pattern of compensation andsource of compensation resources.Thirdly, in theory, the standard of compensation for cash crops is obviouslyhigher than that of food crop, which is six times higher than the current standard.Under the condition of taking environment friendly planting patterns without usingpesticide and chemical fertilizer, peasants accept2631-2940,925-1055,2399-2769and660-810yuan per mu for banana, rice, jindou and corn respectively. Whenallowed to use half of the amount of pesticide and chemical fertilizer, peasants accept1750-1961,568-684,1654-1851and413-501yuan per mu for banana, rice, jindou andcorn respectively.Fourthly, urban residents are willing to pay higher prices for environment-friendly agricultural products. The payment rate is0.82-1.08times than the currentrate for environment friendly planting patterns using no pesticide and chemicalfertilizer and0.6-0.77times higher than current rate for planting patterns using half ofpesticide and chemical fertilizer. Theoretical payment value is1.32and0.88times. Inaddition,48.18%of urban residents are willing to pay for the environment spillcaused by the practice of environment-friendly agriculture. The actual and theoreticalpayoffs are158-239and404yuan per year respectively.Finally, for the AEC system to run smoothly in the minority areas, appropriatemeasures should be taken in the aspects of legislation, organization, administration,market and assessment. Great attention should be taken to divide the hierarchy ofcompensation, to improve project participation and market mechanism in thecalculation of compensation standard, to set up and improve safeguard system, and toenhance theoretical studies.