Smallholders have big role to play

Smallholder farmers are the bedrock of rural economies, be it in China or globally. Operating on limited land and resources, their combined contributions to food security, economic growth, and environmental sustainability are significant. Smallholder farms account for over 90 percent of agricultural production in China, while providing employment to hundreds of millions of rural workers. Their success is pivotal to improving local livelihoods and achieving broader national objectives such as rural vitalization and food sovereignty.

In 2024, China made significant strides in advancing rural vitalization. Efforts to modernize agriculture, enhance rural infrastructure and improve farmers' livelihoods have helped reduce the urban-rural divide and bolster food security. These transformations include the integration of innovative technologies, the expansion of rural industries and increased market access for smallholder farmers. Despite the progress that has been made, however, some challenges persist. For instance, climate change and natural disasters pose significant risks to China's food systems. The growing frequency of extreme weather events — such as droughts, floods, and heatwaves — continues to threaten agricultural productivity and rural incomes, highlighting the urgent need for stronger climate resilience measures and targeted investments to safeguard rural communities.

It is also important to note that intensive agricultural production has had a negative impact on natural resources and environmental management. As smallholders are included into agricultural value chains through the cooperative model, there is need to better harness institutional and technical innovations for the desired green transition.