In Linze County, Zhangye City, Gansu Province, a major national corn seed production base, a project to level farmland has led to controversy as farmers report being charged annual fees to repay associated loans.

Following a report by China National Radio on June 13th, the Gansu Provincial Department of Agriculture and Rural Affairs dispatched a working group to the area to investigate and guide local rectification efforts. Zhangye City has also established a special task force to conduct on-site verification and handle the matter according to law and regulations.

Farmers Charged 200 Yuan Per Mu Annually for 15 Years

In San Yi village, Pingchuan Town, Linze County, farmers like Li Fuqiang reported that after land leveling was completed in their village in 2021, authorities began deducting fees from their annual corn seed production payments starting in 2022. The fee is 100 yuan per mu for the first year and 200 yuan per mu for the subsequent 14 years, totaling 15 years of payments.

Farmers stated that they were initially told the land improvement was a state-funded project requiring no financial contribution from them. However, after the work was done, the situation changed. Multiple villagers confirmed that the fees are deducted directly when their seed company payments are distributed.

Deduction records from San Yi village show items labeled "High-standard farmland construction deduction" and later "High-standard farmland principal and interest repayment." The practice was also found in three other villages in Pingchuan Town: San Er village, Pingchuan village, and Luwan village, all with the same 200 yuan per mu annual charge over 15 years.

Farmer Du Shuxue, who farms 7 mu of land, has 1,400 yuan deducted from his seed payment each year. The deduction amounts vary by farm size, with some farmers facing deductions exceeding 20,000 yuan in total.

Notably, farmers in other townships within Linze County, such as Xinhua Town, reported no such charges for similar land leveling projects conducted years earlier.

Local Response: Fees Intended to Repay Bank Loans After Failed Land Transfer Plan

Linze County authorities responded that the four villages in Pingchuan Town were part of a pilot project to build a corn seed production base. The fees collected from farmers are primarily intended to repay bank loans. The current predicament stems from the collapse of an initial plan for collective land transfer.

Wu Peitao, Deputy Mayor of Pingchuan Town, explained the original model: land was to be transferred from farmers to village cooperatives, then to a state-owned company called Linze County Fumin Industrial Investment and Development Co., Ltd.. This company would use operational income to repay project loans and pay land transfer fees to farmers. However, farmers ultimately refused to transfer their land use rights, causing the plan to fail.

Former Pingchuan Town Party Secretary Zhang Kai added that these villages had undergone lower-level farmland improvements before 2019. The 2021 project aimed for higher quality but was ineligible for new central government funding, leaving bank loans as the only financing option.

Song Zixiong, Deputy Director of the Linze County Agriculture and Rural Affairs Bureau, stated that since the land was not transferred to the Fumin company as planned, farmers must bear part of the loan repayment burden. He cited a principle of "who benefits, who contributes," arguing that limited government subsidies for high-standard farmland create a funding gap that farmers must fill.

Documents show that Linze County Nongxing Characteristic Agriculture Co., Ltd., controlled by the Fumin company, secured a 700 million yuan loan from the Agricultural Development Bank of China's Linze County branch in September 2021 for a seed base upgrade project. The land transfer contract with the village collective was signed two months later.

Estimates suggest farmers in the four villages will shoulder over 60 million yuan in project costs through the 15-year deductions, averaging over 3,000 yuan per mu, which local officials say aligns with the per-mu renovation cost.

Provincial Investigation Finds Unlawful Fee Imposition

After the media report, An Guomin, Deputy Director of the Gansu Provincial Department of Agriculture and Rural Affairs, led an on-site investigation. He clarified that the project in question was not a state-subsidized high-standard farmland project but a county-initiated corn seed base upgrade financed by bank loans.

An Guomin stated that local authorities涉嫌 (are suspected of) misusing the name of high-standard farmland construction to强行摊派 (forcibly apportion) fees to farmers. The provincial department will urge Zhangye City and Linze County to promptly formulate a整改方案 (rectification plan).

The investigation uncovered several other issues, including proceeding with the loan-funded land leveling against farmers' wishes, problems with the land transfer process, and inadequate policy communication at the grassroots level. These findings have been referred to disciplinary inspection authorities.

An Guomin emphasized that for high-standard farmland projects funded by government bonds in 2024, particularly water-efficient projects in the Hexi region, central and provincial funding is sufficient, eliminating the need for farmer contributions. The provincial department issued an紧急通知 (urgent notice) on June 14th, calling for a province-wide inspection to prevent similar incidents of强行摊派 (forcible apportionment) of unreasonable fees under the guise of farmland construction.

Zhangye City Launches Joint Investigation, Vows Accountability

In a statement issued late on June 13th, Zhangye City government announced the formation of a joint investigation team led by senior officials. The team includes members from the city's discipline inspection commission and agriculture, finance, and natural resources departments.

The team is conducting a专项调查 (special investigation) in the affected townships of Linze County. The city government pledged to listen to群众诉求 (public grievances), establish clear problem, rectification, and responsibility lists, and ensure thorough整改 (rectification).

The statement concluded that based on the verification results,严肃追责问责 (serious accountability) will be pursued against those responsible.