China issues pilot work guideline for rural land contracts extension

China on Wednesday issued a guideline outlining arrangements for pilot work to extend rural land contracts by an additional 30 years upon the expiration of the second-round contracts.

The document, jointly issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council, comprises 15 specific measures with a mandate to strengthen the protection of farmers' contractual land rights and interests, enhance the management of rural land contracting, and reinforce organization work and leadership, among others.

The document emphasizes the unchanged policies of unwaveringly upholding the collective ownership of rural land and the farmer household land contracting and operating system, ensuring the principal position of farmers and the stability of rural society.

To carry out the rural land contracts extension pilot work effectively, the Ministry of Agriculture and Rural Affairs and other competent authorities have since 2020 guided various provinces in gradually expanding the scope of the pilot program. This year, province-wide trials are expected to be conducted across 29 provincial-level regions.

Under China's household contract responsibility system, all rural land is owned by rural collectives, which allocate contract rights for parcels of farmland to eligible households. The tenure of contract rights was 15 years in the 1980s and renewed by another 30 years for the second-round contracts in the 1990s. The expiration of second-round contracts is expected to enter a peak period from 2026 to 2028.

China issues pilot work guideline for rural land contracts extension

The U.S. Federal Reserve on Wednesday decided to maintain its target range for the federal funds rate at 3.5-3.75 percent, in line with market expectations.

"Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has been little changed in recent months. Inflation remains somewhat elevated," said the Federal Open Market Committee (FOMC) in a statement.

Nevertheless, "uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the U.S. economy are uncertain. The Committee is attentive to the risks to both sides of its dual mandate," the statement said.

"In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent," the statement said. "In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks."

In the statement, the FOMC reiterated its strong commitment to supporting maximum employment and returning inflation to its 2 percent objective.

Of the 12 FOMC members, 11 voted for keeping the rate unchanged. Stephen Miran voted against the action. He preferred to lower the target range for the federal funds rate by 25 basis points at the meeting.

U.S. Fed keeps interest rate unchanged at 3.5-3.75 pct