Content of Farm Economic Development at District Level

Over the years, many farms of different types have been formed, but the farms are still mainly spontaneous without medium-term and long-term plans, leading to the situation where the farms are built in a fragmented manner, lacking infrastructure support, and have not yet formed a concentrated commodity production area. Some places have initially implemented the planning but encountered many difficulties, especially in the process of land consolidation and site clearance. The time for land allocation, land lease, procedures for land allocation, land lease are difficult, and the slow issuance of land use right certificates affects the investment process. The average investment level for farm economy is still low, many crop, forestry and fishery farms have large production areas but low income and commodity production value. Small-scale livestock farms, interspersed with residential areas, have only met the criteria for commodity and service production value but have not met the criteria for scale... Compared to the land potential and investment capital, only a few farms operate effectively, the remaining farms after a cycle of preferential investment capital from the State are operating at a low level, many farms have stopped operating. Many farming households are not qualified, have not learned about techniques but still find every way to establish farms and among them, there are many households that take advantage of preferential policies, use loans for the wrong purposes, lack management knowledge, and expertise leading to business losses. From this reality, we need to review the development of farm economy in the direction of quality and efficiency. Developing farm economy is not simply concentrating land to have enough area or stabilizing farm size based on the number of animals and crops. Farm economic efficiency needs to be further considered, from the perspective of the level of science and technology applied in production and economic efficiency on each land area, production practices, concentrated production scale and planning of stable raw material areas. Requires farm owners to have good capacity including facilities, capital and management capacity according to market mechanisms. Thus, according to the criteria of the Ministry of Agriculture and Rural Development, only then can criteria be given to determine farm economy in terms of economy, but to develop a sustainable farm, it is necessary to ensure all three aspects: socio-economic, environmental, that is, to expand the scale with a reasonable structure continuously.

Improve productivity and quality and harmonize three goals: economic, social and environmental.

1.2. Content of farm economic development at district level

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1.2.1. Planning for development of farm types

The policy to support the development of the farm economy is implemented vertically from the central to local levels. Currently, the system of organizations implementing the policy to support the development of farms is divided into 4 levels including: central level, provincial/city level, district/town level, and commune level.

In Vietnam as well as many countries in the world, farms have the following main types:

+ By form of ownership:

- Family farm: Is a type of farm in which each family has its own legal status and is directly managed by the head of the household or a capable and prestigious person in the family. In other words, the basic characteristics of a family farm are: The farm owner is the owner, directly manages, directly produces and uses labor mainly from family members.

- Joint venture farm: This is a type of farm where many farms combine to form a larger farm to increase capacity in terms of land, capital, means of production, and technology to improve competitiveness. In this type, each farm participates in the joint venture but still retains the right to independently manage its production.

- Joint-stock farm: This type of farm is organized according to the principle of a joint-stock company, operating in the field of production, processing, and consumption of products. This type of farm is often large-scale and specialized in production, mainly using hired labor.

- Entrusted farm: This is a type of farm that entrusts family members or friends to manage production. These farms are usually small-scale farms, and the farm owners have little experience in organizing production and business. In this case, the farm owner still owns the farm but has entrusted someone else to manage and organize production and business.

+ According to production structure:

-Crop farms: Usually large scale and developed in regions across the country

- Livestock farms: Need to be large-scale and develop nationwide.

- Aquaculture farm: this type of farm is very specific, it is necessary to have a water surface to grow aquaculture with a certain area.

- Comprehensive business farm: farm owners can combine crop farming with livestock farming, crop farming with aquaculture, production with services, small-scale industry or even all forms as long as they are profitable.

+ According to the scale of land use, it can be divided into 4 types:

- Small farm under: 2 ha

- Medium farm: 2-5 ha

- Quite large farm: 5 - 10 ha

- Large farm: over 10 hectares

In reality, due to the different scale and nature of the farms, some farms only develop at the family and village scale, while others develop at the commune and district scale. Therefore, developing the number of farms also means expanding the number of localities and industries that use agricultural products produced by the farms.

The planning of farm development is demonstrated by developing new agricultural production facilities in the form of farms or transforming the household economy into a farm economy; or developing in terms of structure, that is, transforming the structure of farms towards industrialization and modernization, specifically shifting the form of production from extensive to intensive, from production dependent on nature to proactive production of advanced industrial nature. At the same time, focusing on developing farms that produce agricultural commodities that meet the great demand of the market, exportable products, products with high economic value, improving the competitiveness of farms, thereby helping farms stand firm in competitive conditions and economic integration with constantly fluctuating environmental factors.

Promoting farms to improve their competitiveness is the only way to stand firm in the competitive environment and integrate with constantly changing environmental factors. Only when farms’ competitiveness is improved can the real development of a locality’s farms be assessed. The development in the number of farms must be verified through competition, reputation and brand…

In addition, the issuance of a farm economic certificate is also one of the important contents in planning the development of the farm economy. If there is a farm economic certificate, households and individuals will have easy access to other policies and will be given many conditions in developing the farm economy. Regarding the criteria for granting a farm certificate according to Circular 27/2011/TT - BNN & PTNT, individuals and households engaged in agricultural, forestry and aquaculture production that meet farm economic standards must satisfy the following conditions:

- For livestock facilities, the output value of goods must be from 1,000 million VND/year or more;

- For cultivation, aquaculture and integrated production facilities, the following must be achieved:

+ Have an area above the land limit, minimum: 3.1 ha for the Southeast and Mekong Delta regions; 2.1 ha for the remaining provinces and the value of goods output reaches 700 million VND/year;

- For forestry production facilities, the minimum area must be 31 hectares and the average output value of goods must reach 500 million VND/year or more.

1.2.2. Land use policy for farm economic development

Land is an important means of production, decisive to the formation and development of the farm economy. To develop the farm economy, it is necessary to first rely on land, especially for crops and livestock that require a large enough land area to produce a certain amount of goods. Our country has a tropical climate.

, monsoon season fertile land, lush trees all year round, agricultural land area accounts for a very large proportion. In addition, land is also a special commodity, when there is human investment, the land becomes better and better, the fertility increases, the cultivated land area increases, unlike other assets that are subject to wear and tear and lead to damage.

From 2015 to 2019, Thanh Hoa province in general and Yen Dinh district in particular have had policies to support farms such as: Decision No. 2326/QD-UBND of Thanh Hoa Provincial People's Committee on approving the plan to convert low-yield, low-efficiency rice land to other crops and combine aquaculture for higher economic efficiency in Thanh Hoa province. Decision No. 4833/QD-UBND of Thanh Hoa Provincial People's Committee on approving the master plan for agricultural development in Thanh Hoa province to 2025. Decision 271/QD-UBND of the Provincial People's Committee on developing livestock and poultry farming. Resolution of the 25th Yen Dinh District Party Committee for the 2015-2020 term, Resolution 02-NQ/HU in 2016 on restructuring the agricultural sector towards improving productivity, quality, efficiency, and sustainable development.

Land for farm economy includes: Land transferred by the state without collecting land use fees, land leased, transferred, inherited, donated land, encouraging individual households to lease land in puddles, bad land, remote land, 5% public land area to develop farm economy. Farm owners are allowed to build temporary houses on the land used by the farm, the area of temporary houses must not exceed 36m2 , and permanent houses cannot be built on farm land. Households and individuals using agricultural land must use it for the right purpose,

If the purpose is changed, a different production and business project must be established and submitted to the District People's Committee.

Regarding the land use period for farm economic development, it is stipulated to be at least 20 years from the date of approval or re-approval (including farms using public land and other types of land according to the provisions of law, permitted by the District People's Committee to build and produce and do business in the form of farms). For the area of public land used as farms, every 5 years the Commune People's Committee shall re-sign the contract or supplement and adjust the land rental price to suit the reality. Households and individuals using land for farm economic development must comply with the planning and land use plan approved by competent authorities, and be confirmed by the Commune or Town People's Committee as having no disputes, then they can continue to use it according to the regulations of the State.

The important form of land policy for farm economic development is

Land use right certificate and farm certificate. Issuance of land use right certificate and farm certificate is a legal document ensuring the farm owner's rights to exploit and use the land area granted the certificate. This certificate can be mortgaged to borrow capital from credit institutions.

To encourage good farmers to effectively exploit land potential and have sufficient land conditions, to form farms with large enough areas, there should be preferential policies to support good farmers, farm owners to develop large-scale commodity production, exploit and effectively use unused wasteland... according to the general planning orientation of the Province and each locality.

In addition, focus on drastically implementing the policy of "land consolidation and plot exchange"; Speed up the progress of land allocation, land lease and granting of land use right certificates for ungranted land areas. On the basis of land use planning and development planning

1.2.3. Policy to attract investment in farm economic development

Attracting investment is also a part of developing the farm economy. Every year, provinces and centrally run cities can allocate budgets and assign the Department of Agriculture and Rural Development, Farm Economic Association, and Industry Association to organize conferences to promote investment in agriculture; attract investments; support farm owners to participate in trade fairs and agricultural economic and technical exhibitions at home and abroad, helping farm owners promote products, brands, and introduce high-quality agricultural products produced by farms. Along with that, it is possible to attract investment sources in this field. Farm owners proactively participate in specialized fairs held domestically and abroad to find new markets, promptly grasp consumption trends for key and strong products. Authorities promote research activities, explore markets, and promote trade associated with each farm's strong agricultural product.

Innovation in investment policies and credit policies to serve the farm economy is urgently needed. It is necessary to increase appropriate investment levels from the provincial budget and the district and town budgets for agricultural and rural development in general and the farm economy in particular. Implement integrated programs and projects in each locality to build infrastructure systems leading to farms such as roads, electricity, irrigation systems, etc.

In addition, gradually increase medium- and long-term loans for farms, implement preferential interest rate policies, and have separate repayment terms for credit for priority programs for agricultural and rural development. Loan repayment terms must be consistent with the production cycle of crops and livestock and the basic depreciation period in agriculture. It is necessary to create conditions for farms to access credit capital.

Currently, the Party and the State are mobilizing investment capital for rural infrastructure development through sustainable agricultural and rural development projects such as ODA, ADB, WB, this is also an indirect and long-term form of investment. Besides, our country is in a transitional period, after years of economic reform and innovation, the economy is still facing difficulties, so the protection and sponsorship for agriculture is still low, economic owners. Although investment capital for agriculture does not need to be massive and invested at once like in industry, due to the characteristics of agricultural products, there must be a product cycle, because the objects of agricultural production are living organisms, requiring a certain period of growth and development, this is why capital investment for agricultural production is very long, moreover, during such a period, agricultural products are under great pressure from weather, climate, and diseases. Therefore, the risks in investing in agricultural production are not small, leading to difficulties in capital mobilization and investment attraction. This is also an issue that the State needs to pay attention to.

The Party and the State always pay attention to promoting the development of farm economy in all fields. Through Decree No. 41/2010/ND-CP dated April 12, 2010 of the Government on credit policy for agricultural development, Circular No. 20/2010/TT-NHNN or Decision No. 423/2000/QD-NHNN on credit policy for farm economy...

The Ministry of Agriculture and Rural Development, together with localities, has plans to build irrigation works to create water sources for production development. Farm owners can invest their own capital or borrow from the State's development investment credit capital to build water supply systems to serve production and daily life on the farm. Farm owners who build irrigation works and use surface water and groundwater within the farm according to the plan do not have to pay water resource tax.

Yen Dinh district also has plans and mechanisms to support and promote the development of farm economy such as:

– Build infrastructure for transportation, electricity, irrigation, etc. in areas planned for farm economy and agricultural product processing to encourage households and individuals to develop agricultural, forestry and fishery farms.

– Establish projects to introduce potential and investment cooperation opportunities. Increase investment in building farm economic models and widely replicate them.

– Farms are exempted from or have their land rent reduced according to the provisions of the law on land when renting bare hills, wasteland for afforestation, perennial crop planting and when renting areas of natural water that have not been invested in for aquaculture purposes.

1.2.4. Policy on training and developing human resources for farm economy

In the current conditions, the level of labor, management and technical and technological level in production and business are factors that play an important role in economic development in general, and in-depth development of farm economy in particular. The technical facilities used in production and business of farm economy are increasingly modern, with reasonable structure, creating diverse products with increasingly high productivity, quality and economic efficiency. Therefore, when talking about the development of farm economy, it is necessary to pay close attention to the level of management, labor and technical and technological level applied in farm economy.

The State encourages and creates favorable conditions to support farm owners to expand their production and business scale, creating more jobs for rural workers, and giving priority to

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