Authoritative Interpretation! New Industry Development Opportunities from the 2026 Central No. 1 Document

Key Highlights

Implement a new round of hundred-billion-jin grain production capacity enhancement actions, promote the integration and efficiency of good fields, good seeds, good opportunities, and good methods, and advance large-scale increases in grain and oil crop yields.

Adhere to the coordinated development of agriculture, forestry, animal husbandry, and fishery, and promote the construction of a diversified food supply system.

Strengthen the development of the agricultural product futures market.

Coordinate the development of technological agriculture, green agriculture, quality agriculture, and branded agriculture, develop multiple functions of agriculture, and promote the deep integration of primary, secondary, and tertiary rural industries.

Carry out the comprehensive pilot project of extending land contract periods by thirty years after expiration across the entire province.

Develop new qualitative productivity in agriculture according to local conditions, promote the integration of artificial intelligence with agricultural development, expand application scenarios such as drones, the Internet of Things, and robots, and accelerate innovation in key agricultural biomanufacturing technologies.

Deepen the reform of rural collective property rights systems, support the development of new rural collective economies, and strictly control new village-level debts.

Implement the seed industry revitalization action in depth, accelerate the breeding and promotion of breakthrough varieties, and promote the industrialization of biological breeding.

Strengthen the comprehensive regulation of pig production capacity.

The “Opinions of the Central Committee of the Communist Party of China and the State Council on Solidly Promoting Rural Revitalization with the Goal of Modernizing Agriculture and Rural Areas” was released on February 3. This is the 14th Central No.1 Document guiding “agriculture, rural areas, and farmers” work since the 18th National Congress.

The document consists of six parts, including: improving comprehensive agricultural production capacity and quality efficiency, implementing normalized targeted assistance, actively promoting stable income for farmers, advancing livable, workable, and beautiful rural construction according to local conditions, strengthening institutional and mechanism innovation, and strengthening the Party’s overall leadership over “agriculture, rural areas, and farmers” work.

Several experts interviewed by Shanghai Securities Journal stated that, from the perspective of the No.1 Document, capital has great potential in enhancing comprehensive agricultural production capacity, expanding county-level rural prosperity industries, and improving the socialized service system for agriculture.

Enhance Comprehensive Agricultural Production Capacity and Quality Efficiency

The document requires improving comprehensive agricultural production capacity and quality efficiency. It explicitly proposes a series of specific measures, including stabilizing grain and oil production, promoting quality and efficiency in “vegetable basket” industries, strengthening arable land protection and quality improvement, enhancing agricultural science and technology innovation, and building a resilient disaster prevention and mitigation system.

In promoting the quality and efficiency of the “vegetable basket” industries, the document emphasizes adhering to the coordinated development of agriculture, forestry, animal husbandry, and fishery, and promoting the construction of a diversified food supply system. It calls for strengthening the comprehensive regulation of pig production capacity, consolidating the relief achievements of beef and dairy industries, and promoting balanced and healthy development. Multiple measures are proposed to boost dairy consumption. Support is given to the development of silage corn, alfalfa, and other forage production, to transform and upgrade the pastoral industry. Support for the renovation and upgrading of facility agriculture, stable development of vegetable production, promotion of deep-sea aquaculture and modern ocean fishing, and active development of forest foods and bio-agriculture are also highlighted. Strictly implement food safety responsibilities, strengthen multi-departmental coordination and full-chain supervision, and crack down on illegal additives and excessive pesticide and veterinary drug residues.

Professor Kong Xiangzhi from the College of Agriculture and Rural Development at Renmin University of China told Shanghai Securities Journal, “The 14th Five-Year Plan period is a critical stage to lay a solid foundation for the comprehensive modernization of socialism and to tackle key tasks. The task of improving agricultural comprehensive productivity and quality efficiency is arduous and urgent.” He believes that although China’s grain output has maintained a bumper harvest for many years and overall food security is effectively guaranteed, the continuous growth in demand for grain and important agricultural products means that, from a long-term perspective, supply and demand remain tightly balanced. Only by continuously improving agricultural capacity can China maintain control over food security.

As urban and rural residents’ income levels rise and consumption structures upgrade, people’s dietary needs have shifted from “eating enough” to “eating well and healthily,” which also raises higher requirements for agricultural production. Kong Xiangzhi suggests that responding to this trend requires practicing a broad view of agriculture and food, and developing food resources from cultivated land, grasslands, forests, oceans, plants, animals, and microbes to meet diverse food consumption and nutritional health needs. Some listed companies have already taken the lead in layout, and the capital market still has huge potential and development opportunities.

Cultivate and Strengthen County Prosperity Industries

The document focuses on “actively promoting stable income for farmers” and includes key tasks such as protecting and motivating farmers’ enthusiasm for farming and grain planting, cultivating and expanding county-level prosperity industries, promoting stable employment for migrant workers, and expanding rural consumption through multiple measures.

In developing county prosperity industries, the document calls for coordinated development of technological, green, quality, and branded agriculture, developing multiple functions of agriculture, and promoting deep integration of primary, secondary, and tertiary industries in rural areas. Support is given to green and efficient planting and breeding, advancing deep processing of agricultural products, cultivating high-quality brands, and developing the entire industry chain. Implement high-quality development projects for rural e-commerce, promote the sinking of e-commerce platforms to empower rural areas, and strengthen facilities such as pre-cooling, storage, preservation, and sorting. Regulate live-streaming sales of agricultural products. Deepen the integration of agriculture, culture, and tourism, upgrade rural tourism, and develop “small but beautiful” cultural tourism formats. Actively develop forest and grass industries, cultivate and expand under-forest economy and forest health industries. Optimize regional layout of the silk industry. Develop distinctive county economies, cultivate characteristic industrial clusters of small and medium-sized enterprises, and promote integrated development of industry, county strength, and wealth for farmers. Expand channels and methods for farmers to participate in industry development, improve fair sharing mechanisms for industry benefits, and guide new agricultural business entities to drive farmers’ income growth. Strengthen overall planning and scientific demonstration of industrial projects, and avoid chaos and large fluctuations. Improve provincial agricultural and related industry statistical evaluation systems.

Feng Danmeng from the Rural Economic Research Center of the Ministry of Agriculture and Rural Affairs told Shanghai Securities Journal that cultivating and expanding county prosperity industries should be based on resource endowments, and foster characteristic advantageous industries. According to local resource features and development realities, develop specialized planting and breeding, green and organic industries, and regional public brands to enhance the market competitiveness of county agricultural products; also extend the industrial chain and promote the construction and integration of the entire county industry chain. Focus on processing, sales, and other links, continuously improve infrastructure such as storage and logistics, and support land, talent, and financial factors to build a cluster development pattern for county industries, explore diverse formats, and promote the integration of primary, secondary, and tertiary industries.

Accelerate the Improvement of Modern Agricultural Operating Systems

The document calls for strengthening institutional and mechanism innovation. Specific measures include accelerating the improvement of modern agricultural operating systems, regulating and efficiently utilizing rural resources, innovating rural revitalization investment and financing mechanisms, and promoting two-way flow of urban and rural factors.

In terms of accelerating the improvement of modern agricultural operating systems, the document requires enhancing the production and management capacity of family farms, improving the quality of farmers’ cooperatives, leveraging the role of modern agricultural service centers, perfecting convenient and efficient socialized agricultural service systems, developing appropriately scaled agricultural operations, and ensuring the organic connection between small farmers and modern agriculture.

In recent years, under policy support and market-driven forces, China’s socialized agricultural service industry has rapidly risen, with service providers becoming more diverse, expanding service scope, and extending service links. According to data from the Ministry of Agriculture and Rural Affairs, there are currently 1.111 million operational entities providing socialized services, including specialized service households, farmers’ cooperatives, agricultural service companies, and rural collective economic organizations, serving nearly 93 million small farmers, with an annual service area exceeding 2.29 billion mu. More and more service providers are shifting from single-link services to multi-link and comprehensive services, playing an important role in solving the problems of small farmers “unable to do, do poorly, or uneconomical to do.”

However, the current construction of China’s socialized agricultural service system still faces many prominent shortcomings. Infrastructure in key areas such as machinery storage facilities, centralized seedling and seed production bases, grain drying, storage, and refrigeration is lagging, leading to poor coordination among pre-production planning, mid-production technical support, and post-production processing and circulation. This hampers the formation of a full-chain service force; although various service entities are becoming more diverse, there is a lack of clear division of labor and cooperation mechanisms, resulting in some service links being overcapacity and competitive disorder, and a shortage of high-quality, professional services. This structural imbalance severely restricts the overall effectiveness of the socialized agricultural service system.

Facing these industry bottlenecks, Kong Xiangzhi told reporters that the construction of modern agricultural comprehensive service centers should be guided by government, with social investment as the core, highlighting the leading role of operational service providers, and building a diversified development pattern supported by market-oriented, operational services and public welfare services. By continuously enhancing the radiation and driving effect of service centers, the socialized service system for agriculture can steadily move toward layered, classified, complementary advantages, and integrated co-existence. Throughout the process of improving the socialized service system and addressing industry shortcomings, the capital market should leverage its advantages in financing, resource integration, and professional operation to actively participate and inject stronger momentum into high-quality development of socialized services.

From Scientific Research to Industrial Leap to Strengthen the “Core” of Agriculture

Seeds are the “chips” of agriculture. The document explicitly states, “Deepen the implementation of the seed industry revitalization action, accelerate the breeding and promotion of breakthrough varieties, and promote the industrialization of biological breeding.”

Yang Jianguo, an expert from the China Daily Think Tank and member of the Central China Agricultural Valley Expert Advisory Committee, told Shanghai Securities Journal that this year’s No.1 Central Document’s emphasis on the seed industry marks an upgrade from scientific research breakthroughs to industrial leapfrogging, which is expected to bring profound impacts such as reshaping the innovation system of the seed industry, restructuring industry patterns, accelerating the growth of leading enterprises, and clarifying the division of labor between research institutes and companies.

Zhang Xuejun, General Manager of Qiule Seed Industry, said that the document focuses on modernizing agriculture and rural areas, with seed industry revitalization as a core measure to ensure food security. Its highlights are concentrated in “three-dimensional efforts and policy support”: first, focusing on capacity enhancement to promote the integration of good fields, good seeds, good opportunities, and good methods; second, strengthening technological innovation, clarifying the industrialization direction of biological breeding, and supporting leading enterprises to tackle key technical problems; third, optimizing supply structure, expanding diversified oilseed and forage production, and establishing a high-quality, high-price market mechanism supported by policies such as pricing, subsidies, and insurance to ensure development bottom lines.

He believes that a major highlight of the document is the shift from “priority research” to “efficiency-oriented” application. Previously, the focus was more on filling gaps, breaking bottlenecks, and turning the tide; this year, the high-efficiency transformation and application of scientific and technological achievements are emphasized more prominently, meaning seed industry breakthroughs will no longer stay in laboratories but will be seen in large fields, markets, and industrial chains. Yang Jianguo told reporters, “The clear promotion of biological breeding industrialization this year means policies are more stable, pathways clearer, and expectations more controllable, which will accelerate the landing and application of new varieties.”

As a leading domestic biological breeding enterprise, DaBeiNong’s relevant person in charge told reporters that the document continues to focus on the revitalization of the seed industry. It reflects the “high-quality development” as the core theme of the seed industry, with quality and efficiency becoming the “hard indicators” of industry development. It will promote the industry’s shift from “quantity-focused” to a balanced emphasis on “yield + quality + efficiency,” and accelerate the elimination of outdated capacity. Meanwhile, the document will also promote the continuous acceleration of China’s biological breeding industrialization, with further improvements in technological maturity and market acceptance.

It is worth noting that, based on the 2025 No.1 Central Document’s goal to “accelerate the breakthrough of a batch of breakthrough varieties,” the 2026 No.1 Central Document proposes “accelerate the breeding and promotion of breakthrough varieties.”

Yang Jianguo said, “Accelerating the breeding and promotion of breakthrough varieties” aims to speed up the entire chain from scientific research innovation to field application. Breakthrough varieties refer to new varieties that have achieved significant improvements in yield, resistance, quality, or ecological adaptability, serving as key supports for food security and modern agriculture. Accelerating breeding means efficient linkage of scientific research, field trials, and pilot demonstrations, shortening the cycle from laboratory to field; promoting rapid application emphasizes policy, platforms, enterprises, and farmers working together to quickly land and apply new varieties. Taking the major agricultural province Henan as an example, this will boost the yield and quality of main crops like wheat, soybean, and maize, support the construction of the Central China Agricultural Valley, and provide a replicable model for national food security.

Set the Tone for 2026 Livestock Development: Precise Regulation, Quality and Efficiency

Livestock is an important part of agriculture. The document proposes strengthening comprehensive regulation of pig production capacity, advancing joint prevention and control of major animal diseases, and cultivating internationally competitive agricultural enterprises, aiming to achieve balanced and healthy development of the livestock industry.

Zhu Zengyong, an expert in pig industry monitoring and early warning at the Ministry of Agriculture and Rural Affairs, told Shanghai Securities Journal that the new highlights of the 2026 No.1 Central Document on livestock can be summarized as “precise regulation, diversified supply, and supporting upgrades,” with the core shifting from the previous “stabilizing production” mindset focused on quantity, to a new focus on “quality improvement” and “regulation” that considers both quantity and quality, supply and benefits.

The pig industry is a vital component of China’s livestock sector. Its stable development is crucial for ensuring market supply, stabilizing prices, and increasing farmers’ income. The 2026 No.1 Central Document proposes “strengthening comprehensive regulation of pig production capacity.” Cao Hui, an analyst at Zhuo Chuang Information, said that “comprehensive regulation” means the policy will not only focus on traditional indicators like the number of breeding sows but also coordinate efforts such as adjusting livestock import and export trade, optimizing stockpiling policies, using financial tools, and guiding consumer markets.

“Strengthening pig production capacity regulation aims to ‘lighten the load’ on the market, and there is still room for capacity reduction,” Zhu Zengyong explained. As of the end of December 2025, the national breeding sow inventory was 39.61 million, slightly above the normal holding of 39 million. In 2025, pig farming remained marginally profitable, but industry costs varied significantly. Market regulation policies are expected to continue in 2026, with a mild recovery anticipated.

Regarding industry development, Cao Hui noted that domestic agricultural product prices are currently at cyclical lows, which is an important window for promoting systemic structural adjustments. Coordinated policies and mechanisms can help industry transition smoothly, avoiding large fluctuations, and increasing industry adaptability to policies. For livestock enterprises, those with outstanding performance in benefits, environmental protection, and industry chain coordination will enjoy more relaxed development environments; less efficient, high-cost units will face greater constraints, promoting overall industry upgrading.

Animal disease control is a key factor affecting livestock industry stability. The 2026 No.1 Central Document emphasizes “advancing joint prevention and control of major animal diseases.” Cao Hui said that the document proposes a more systematic and comprehensive approach, involving multi-departmental coordination and full-chain supervision as means to implement food safety responsibilities, extending from feed and veterinary drugs to breeding, slaughter, processing, and sales, forming a full-chain regulatory system. “This shift aims to establish a closed-loop full-chain supervision and cross-departmental joint prevention and control, significantly improving animal disease prevention and control effectiveness, and building a dual line of defense for livestock production safety and public health safety,” Cao Hui explained.

Additionally, the 2026 No.1 Central Document also proposes promoting diversification of agricultural product imports and cultivating internationally competitive agricultural enterprises. Zhu Zengyong noted that overall, these policies set a new course for the livestock industry focused on “quality and efficiency, supply-demand balance, and high-quality development,” guiding the industry into a new stage centered on efficiency and resilience.

(Source: Shanghai Securities Journal)