China’s central government will offer a total of 14.9 billion yuan ($2.42 billion) this year to farmers and local communities as a compensation for preserving forests crucial to environment and biological diversity. The Ministry of Finance said Wednesday that the money will be paid through a fund established in 2004 for the compensation of farmers and communities in exchange for the ecological benefits of the forests…Full-text article: The Global Times Sep 2013

Key point

  • In 2013, the Ministry of Finance raised the subsidy for both private and community-owned forests from CNY 10 to 15 (US$1.63 to $2.45) per mu (~0.16 acre)

ChinaAg Comment

  • China’s timber production is largely located in the southern regions of the country. In 2011, Guangxi province produced 15.2 million cubic meters of timber or 19% of China’s total timber output. Guangdong province produced 7.3 million cubic meters (9% of China’s output), while Hunan, Fujian, and Yunnan provinces produced 5.9 million to 5.3 million cubic meters of timber (7% output each).
  • Chinese forest products include tea-oil seeds, pine resin, rubber, tung-oil seeds, and lacquer. Tea oil is used as a cooking (stir-fry) oil; pine resin is used for glue, water proofing, or medicinal purposes; tung-oil is used for wood finishing; rubber is used for a wide range of household and industrial products; and lacquer (sap from the Chinese lacquer tree) is used for wood finishing.

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