Chapter IV Funds and Grain Subsidies

Article 35The State shall provide land management contractors with grain subsidy, seed and seedling subsidy for afforestation and living allowance according to the verified actual area of converted farmland. Specific standard and duration for such subsidies and allowance shall be subject to the relevant provisions of the State Council.

Article 36For slope farmland not yet being contracted to households and slope farmland in fallow to be converted to forests, as well as plantable barren hills and wasteland listed in the planning of conversion of farmland to forests, only the seed and seedling subsidy for afforestation shall be granted.

Article 37Seed and seedling subsidy for afforestation and living allowance shall be timely verified, allocated and distributed by the departments for development planning, finance and forestry of the State Council in accordance with the relevant provisions.

Article 38Subsidized grain shall be allocated and transported from nearby places to shorten the supply chains and reduce the supply costs. Grain subsidy fee shall be subject to relevant policies of the State.

Costs for allocation and transportation of grain shall be borne by local treasury; enterprises providing subsidized grain and those who convert their farmland to forests shall not be required to share these costs.

Article 39The people's governments of the provinces, autonomous regions and municipalities directly under the Central Government shall decide the varieties of subsidized grain on the basis of local custom of food consumption, traditions of crop growing and actual situation of local grain stockpiles.

Subsidized grain shall meet the State quality standard. Grain that is not up to the State quality standard shall not be provided to those who convert their farmland to forests.

Article 40In the first year of conversion of farmland to forests, the subsidized grain for that year may be disbursed twice, and the amount of each time shall be decided by the people's government of the province, autonomous region or municipality directly under the Central Government.

Starting from the second year of conversion of farmland to forests and within the stipulated duration of subsidies, the people's governments at the county level shall assign related departments and units to disburse the annual subsidized grain in a lump sum to those who convert their farmland to forests and hold the inspection and acceptance certificates.

Article 41Subsidized grain shall not be converted into cash or coupons in disbursement. The enterprises providing subsidized grain shall not repurchase the subsidized grain.

Article 42Seed and seedling subsidy for afforestation shall be used for purchasing seeds and seedlings and the surplus may be used for afforestation, mountain closure and tending practices.

Where those who convert their farmland to forests purchase seeds and seedlings on their own, the people's government at the county level or the people's governments at the township level entrusted by it shall pay off in a lump sum the seed and seedling subsidy for afforestation upon the entry-into-force of land conversion contracts.

Where seeds and seedlings are purchased in the way of centralized purchase, the units responsible for seed and seedling purchase shall settle the seed and seedling subsidy accounts with those who convert their farmland to forests after the converted farmland are inspected and accepted.

Article 43After conversion of farmland to forests is completed, within the stipulated duration of subsidizing, the people's governments at the county level shall instruct relevant departments to pay off in a lump sum the living allowance for that year to those who convert their farmland to forests and hold the inspection and acceptance certificates.

Article 44Funds for conversion of farmland to forests shall be deposited in a special account and exclusively used for the set purpose. No unit or individual may illegally occupy, intercept, misappropriate or dock the funds.

No unit or individual may make falsifications or fake reports to falsely claim subsidized funds or grain.

Article 45Preparation cost and scientific and technical supporting cost for conversion of farmland to forests shall be proportionally subsidized by the State in the investment for capital construction for conversion of farmland to forests and be allocated by the development planning department of the State Council in line with the progress.

The costs for the inspection, acceptance and disbursement by various localities in conversion of farmland to forests shall be borne by the local treasury. The costs for examinations by the relevant departments of the Central Government shall be borne by the State treasury.

Article 46A publication system shall be established at each township (town) and village where conversion of farmland to forests is carried out, making public such information as area of conversion, tree species for afforestation, survival rate and the details about the distribution of funds and grain subsidies.