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15 Agricultural Water Management in Northern China
over the next 10 years from 2010 levels. 10% of land premiums should be used in
the development of irrigation infrastructure.
The 2012 Some Opinions on Fastening Agricultural Science and Technology
Innovation and Sustainable Increasing Agricultural Product Supply and Guarantee
Ability required the more diligent central and provincial collection of land premiums
to use for irrigation development, as would be reiterated in the 2014 State No. 1
Document.
The attraction and encouragement of social capital to invest in the construction
and management of water resources projects, particularly small-scale schemes, is the
policy direction of the 2015 and 2016 State No. 1 Documents.
After 2005, therefore, with the introduction of new mechanisms and establishment of the special fund for irrigation infrastructure, support for field-level irrigation
infrastructure increases significantly. Since then, China has enjoyed a continuous
increase in total grain production, while agricultural water use has remained relatively stable (Fig. 15.1). In terms of irrigation development, the area of effective
irrigated land increased from more than 7 million ha in 2005 to more than 13 million
ha in 2012 in the country as a whole, and from about 6 million ha to more than 10
million ha between 2005 and 2010 in northern China.
15.4.3 Pricing for Agricultural Water Use
In China’s agricultural sector, the water tariff consists of a water resources fee, which
is a resource charge, and a water supply tariff from hydraulic engineering, which is
a service charge.
15.4.3.1 Exemption from Agricultural Water Resources Fees
The water resources fee system requires that all water abstraction directly from
surface water bodies and groundwater aquifers, except for rural domestic and livestock use and emergency use, shall require the payment of a water resources
fee.
Although this is not defined in legislation, water resources fees for agricultural use
are not collected all the time in China. Some provinces, such as Beijing and Shiyang
River Basin in Gansu Province, do not in fact collect fees following the issuance of a
document for over-quota use. This exemption is an instrument to support agricultural
water resources management and to alleviate farmers’ burden on water.
15.4.3.2 Service Charging Reform
Pricing for agricultural water use is a dilemma in China. In one respect, agriculture
is critically important to society and the economy in China, and so agricultural
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