Highly concerned with agricultural audit, the National Audit Office of China (CNAO) always emphasizes on auditing the stable production and sufficient supply of food and important agricultural products. Prioritizing food security, CNAO conducts relevant policy implementation and fund using audits, giving full play to the constructive role of audit in improving the policies on food security, enhancing fund’s security and performance, and holding to account all acts of corruption involving food and agriculture.

I. China’s Remarkable Achievements in Food Security

With arable land accounting for 9% of the world’s total and freshwater resources accounting for 6% of the world’s total, China succeeds in feeding a population of nearly 1.4 billion, about 20% of the world’s total. Furthermore, China has remarkably improved the people’s nutrition and life quality. Its people now have not only enough to eat, but also a greater range of choice. With its food production capacity and modernization level of food circulation enhanced, China keeps improving its food-supply structure for steady development of the grain industry. This is manifested in the following aspects.

First, there is steady growth in food production. China’s total food output reached 680 million tons in 2022, remaining above 650 million tons for the eighth year in succession. The per-capita food output reached about 486 kg, higher than the world average. In 2022, China’s average food yield per hectare reached up to 5,802 kg, with the per unit yield of rice and wheat over 50% higher than the world average.

Second, self-sufficiency in grain supply is ensured. In 2022, China’s grain output reached 633 million tons, accounting for more than 90% of the total food output. At present, China boasts a food self-sufficiency ratio of over 100% and a grain self-sufficiency rate of over 95%, with the basic self-sufficiency of grain supply and absolute security of staple grains.

Third, food storage capacity is enhanced. In 2022, the storage capacity of qualified food warehouses was about 700 million tons across China. Food storage is further modernized, with China’s food storage facilities generally reaching world advanced levels. Moreover, a multimodal transport network for food logistics composed of highways, railways and waterways, and a network of emergency reserves, processing and distribution have taken shape basically, playing an important role in response to major natural disasters and public emergencies.

Fourth, the health and nutritional status of residents is improved. China features various foodstuffs, enabling Chinese residents access to sufficient intake of the three major nutrients, protein, fat and carbohydrates. Hence, with residents having more diversified food and healthier diets, the proportion of carbohydrates intake has decreased, with an increase in the proportion of fat and quality protein intake. Furthermore, there is an improvement in nutritional level of target population including children, pregnant women and the elderly.

Fifth, the difficulty in feeding the poor is overcome. As of the end of 2020, a total of 98.99 million impoverished Chinese villagers were all lifted out of poverty according to the current standard. China, with a population accounting for nearly one-fifth of the world’s total, has completely eradicated absolute poverty, achieving the poverty reduction goal in the 2030 Agenda for Sustainable Development Goals 10 years in advance, basically solving the problem of feeding the poor. The impoverished rural residents’ average disposable income reached RMB 12,588 in 2020. The rise of income has enhanced food accessibility to the distressed areas, with a steady increase in the grain intake among the poor.

While ensuring food security, China is an active promoter of free trade, shares food market resources, and expands international cooperation in food and agriculture, to contribute to promoting the sound development of the food industry in Asia and the world and maintaining global food security.

II. Policy Background of Food Security in China

The following supportive policies and measures have been formulated in China, to promote sustainable agricultural development and ensure food security:

The first is to lay a solid foundation for food production capacity. China implements the strictest farmland protection system, with the policy of balancing the occupation and replenishment of farmland and a complete and special protection system for permanent basic farmland introduced, to draw a red line for its 120 million hectares of farmland. With focus on improving the quality of farmland, China implements an overall plan for the development of high-standard farmland to promote the practice of returning straw to the field and the application of organic fertilizers. It carries out a pilot system of fallow rotation of farmland and controls the application of chemical fertilizers and pesticides to gradually eliminate non-point source pollution for the environmental protection. China also builds functional areas for food production and protected areas for the production of important agricultural products, and major water conservancy projects for water saving and water supply, projects for support facilities and modern and efficient water-saving reconstruction in irrigation districts, projects for standardizing and improving the quality of small-scale irrigation facilities, to strengthen the utilization efficiency of water resources.

The second is to cultivate and arouse the enthusiasm of grain planting. In 2006, China abolished the agricultural tax, which had existed for 2,600 years, lightening the burden on the farmers. China keeps improving the mode of production and operation and cultivating new-type agricultural business entities and socialized service organizations to promote moderate-scale operations. To protect farmers from low grain prices and problems in selling their output, China has introduced procurement policies, covering minimum purchasing price procurement and temporary state collection and storage.

The third is to develop grain industry economy. China is accelerating the construction of a modernized grain industry system, to promote the integrated development of primary, secondary and tertiary industries. China implements Quality Food Projects, builds demonstration cities and counties, develops exemplary industrial parks and incubates backbone enterprises to promote the transformation and upgrading of the grain industry. Professional post-production grain service centers have been established to provide farmers with cleaning, drying, storage, processing and marketing services. A grain quality and safety inspection and monitoring system has been established, with a series of standards for grain and oil set for food quality.

The fourth is to facilitate grain storage and logistics. China has established a system of central and local grain storage. Besides, China keeps modernizing grain storage and logistics, improving the inspection methods of grain inventory and the quality and safety supervision system, and building a responsibility system and code of conduct for safe storage of grain and oil. China promotes application of key technologies for grain storage and preservation, pest and mildew control, loss reduction in grain storage and transportation to improve the freshness and quality of grain.

The fifth is to strengthen the scientific and technological support for grain production. Emphasizing on seed innovation and development, China has promoted research on high-quality varieties of corn, soybean, rice and wheat, basically realizing wide applications of all major food crops. China has concentrated efforts to increase crop yield through science and technology, promoting agricultural techniques such as scientific fertilization, water-saving irrigation, green prevention and control, thereby advancing the transformation and upgrading of agricultural mechanization and agricultural machinery and equipment industries.

The sixth is to strengthen responsibility for agricultural development and food production. The Chinese central government takes overall responsibility for food security, while the provincial governments bear the primary responsibility. Administrative powers and responsibilities have been clarified for the provincial governments in safeguarding national food security in terms of production, circulation and consumption. An assessment mechanism has been established and a working group composed of relevant state departments has been formed, responsible for carrying out the assessment, further consolidating the responsibility of local governments in maintaining national food security.

III. Auditing as a Strong and Effective Safeguard for National Food Security

In recent years, CNAO monitors the policy implemenation and funds for sustainable agricultural development and food security, through special audits of the farmland water conservancy, seed development funds, and grain reserves projects.

First, in terms of laying a solid foundation for food production capacity, CNAO has conducted the audits on the effectiveness of farmland protection, high-standard farmland construction, large and medium-sized projects for support facilities and water-saving reconstruction in irrigation districts and related funds, black soil conservation and treatment, reduced application of pesticides and chemical fertilizers, recycling of straw and agricultural film, livestock and poultry manure disposal, etc. Audits also identify prominent problems concerning farmland quantity and quality protection, irrigation and water conservancy facilities construction, and green agricultural development.

Second, in terms of cultivating and arousing the enthusiasm of grain planting, CNAO has performed the audits on the implementation of pilicies to benefit farmers, the use of agricultural insurance, the cultivation of new-type agricultural business entities such as cooperatives and family farms, the implementation of agricultural credit support policies. Audits reveal prominent problems concerning the efficiency of protecting farmers’ income and improving agricultural production and operation, promote the establishment of the agricultural insurance system, and punish the minor corruption, thereby protecting farmers’ interests and motivating grain growing.

Third, in terms of facilitating grain storage and circulation management, CNAO has implemented the audits on the quality of circulated food, the construction of emergency food supply outlets, the development of post-production service capacity for scientific storage and drying of grain, and loss prevention management for mechanized wheat harvesting. Audits find out prominent problems and latent risks concerning the management and utilization of related fiscal funds, as well as the implementation of food storage and circulation policies. Furthermore, audits reveal corruption in grain purchase and sales, to promote strict implementation of the responsibilities for the safety management of grain storage, and improve the grain reserve mechanism.

Fourth, in terms of strengthening the scientific and technological support for food production, CNAO has conducted audits on the conservation and utilization of germplasm resources, scientific and technological innovation in breeding, the construction of national high-quality varieties breeding bases, seed reserves for disaster relief and preparation, and supervision over the seed market. Audits identify prominent problems influencing the foundation and capacity of seed innovative development, to facilitate the high-quality development of seed technology in the form of self-reliance and self-improvement.

Fifth, in terms of implementing the responsibility system of provincial governors for food security, CNAO has considered food security as a key audit subject matter, and the assessment of the responsibility system of provincial governors for food security as an important basis of accountability audit over leading officials. Audits related to food security are conducted over the completion of tasks, the implementation of policies and measures, and the management and utilization of funds.

For the above audit findings, CNAO reports to the relevant departments, and also puts forward practical audit recommendations on relevant issues. Meanwhile, CNAO strengthens post-audit rectification, urges relevant departments and local governments to establish a ledger of audit findings requiring rectification, and promotes competent authorities, including the departments of agricultural and rural affairs, water resources, grain and material reserves, and public finance, to assume their regulatory responsibilities. Moreover, CNAO explores to improve the rules and regulations, establish strict procedures and standards, and reduce loopholes and risks. CNAO takes the lead in solving problems at source and gathering forces together for post-audit rectification, to give full play to the important role of supervision through auditing in “solving problems after occurrence and preventing potential problems before occurrence”.

Annex: Introduction to Audit Cases of High-standard Farmland Construction

High-standard farmland construction¹ is a key measure taken by China to consolidate and improve its food production capacity and ensure national food security. As is pointed out in the National Development Planning for the “14th Five-Year” Plan, China will build about 71.67 million hectares of high-standard contiguous farmland. The National Plan for High-Standard Farmland Construction (2021-2030), issued with the approval of the State Council, clarified goals, contents and requirements for high-standard farmland construction. From 2020 to 2021, CNAO has audited the funds and projects for high-standard farmland construction among 138 counties in 21 provinces.

(I) Focus of Audit

On the basis of the national planning and local task performance, CNAO has performed audits over the entire process covering project planning, project construction, fund utilization, and post-construction management and maintenance, with funds, projects and policies. Audits are focused on the planning and management of high-standard farmland construction, the progress of task execution, the quality of project construction, the management and maintenance, the post-construction effectiveness, etc.

(II) Problems Identified in Audits

First, high-standard farmland construction is not well-connected with the planning for water conservancy and food production. Some local departments of agriculture, water resources and electric power have less communication, with high-standard farmland construction disconnected from the implementation of large and medium-sized projects for support facilities in irrigation districts and rural power grid upgrading. Thus, some high-standard farmland contains “ditches but no water” and “wells but no electricity”. Several regions do not prioritize the development of permanent basic farmland protection

zones, functional areas for food production, protected areas for the production of important agricultural products and national seed bases, to build the high-standard farmland. In some other regions, high-standard farmland is built in areas that are geographically poor and unsuitable for farming, with supporting facilities and financial funds going down the drain.

Second, high-standard farmland construction is not yet completed, even with false declaration. Due to the lack of rigorous statistical methods for high-standard farmland construction and the measures for substantive verification, some regions have submitted a false report on the progress of high-standard farmland construction and the built area. Some have reported projects in progress as completed or repeatedly reported the projects. Some have even reported the built area of projects in progress according to the proportion of used construction costs, with the projects not yet finished.

Third, the quality of high-standard farmland construction is not up to standard. Some project sites are unqualified, i.e., farmland is built on a slope of 25° or higher or scattered, not compatible with the modern mode of agricultural production and operation. Some projects are located in the core and buffer zones of nature reserves, afforestation areas, and grasslands, with benefits barely generated. In some regions, high-standard farmland construction is carried out with engineering for road, bridge, ditch and well construction, incapable of enhancing the farmland fertility and quality. Additionally, in some other cases, project quality is not strictly controlled, e.g., the construction company ignores the design drawing or uses inferior materials, resulting in the quality dissatisfaction.

Fourth, the management, maintenance and utilization of high-standard farmland are unqualified. In some cases, the transfer of assets is not implemented, with undefined responsibilities and a lack of the guarantee for the management and maintenance fund. Hence, the damaged irrigation and water conservancy facilities, covering pump stations, pumping wells, bridges and culverts, ditches, field paths, water-saving irrigation equipment, fail to be repaired in time, only left unused.

The high-standard farmland protection mechanism is not implemented efficiently. Some high-standard farmland is illegally occupied for other projects after construction. Some is not used for grain production as required, but is left unused or used for “non-agricultural purposes” or “non-grain purposes” such as fruit tree planting and fishpond construction.

In response to the above problems, we have offered advice on improvement to the relevant competent departments, suggesting that the local governments and competent departments should further rationalize their responsibilities for the management of farmland construction and strengthen the integrated construction of the main project and supporting facilities. Information technology can used to enhance the comprehensive supervision over farmland construction from project approval to acceptance inspection, management and maintenance. Moreover, the comprehensive evaluating system on the construction quality should be established with emphasis on “increasing food production capacity”. Funds can be raised from multiple channels and the primary responsibilities should be clarified to improve substandard projects and damaged old facilities as soon as possible.

(III) Major Experience and Practices

1. Research-based auditing is an effective way to improve audit findings

First, deeper research on auditees were conducted. We visited the relevant departments, including the departments of agricultural and rural affairs and departments of natural resources, and had discussions with them to learn about their overall planning, fund arrangement and assessment results for high-standard farmland construction. We read more than 50 documents about the planning, implementation, tasks and fund management related to high-standard farmland construction; and were briefed on the difficulties and advice of the competent departments in carrying out high-standard farmland construction.

Second, field research and industry studies were strengthened. We conducted field research in provinces with large-scale construction, such as Henan, Heilongjiang and Sichuan provinces, learned about high-standard farmland construction and utilization. We also visited agricultural enterprises, villages and farmers for collecting information about task execution, funding, and the demand. At the same time, we gathered about 100 research articles, reform proposals and opinions on the Internet for high-standard farmland construction, management and maintenance by the public.

Third, the research on audit methodology were enhanced. We systematically learned about the policy background of high-standard farmland construction, relevant laws and regulations, and audit methods for common problems, compiling methodological guidelines for audits of high-standard farmland construction. We also guided the audit team in making the detailed audit implementation plan, and clarifying pre-audit research content, including essential materials, data and information. We put forward auditing viewpoints and suggestions in advance, and allocated auditing forces for the focus of audit, ensuring the audit findings.

2. Use of big data is a key measure to increase audit efficiency

Through informatization, digitalization and networking, CNAO strives to enhance the capacity for supervision through auditing, process control and decision support to increase the quality and efficiency of supervision through auditing. To be specific, the audit of high-standard farmland construction requires a long period of time, involving many items on a large scale. Considering this, geographic information technology can be used to effectively improve the efficiency and quality of audit. For example, remote sensors were used to identify buildings, roads and other structures built on farmland by aerial detection, and GPS was used to measure the area, slope and completion time of farmland and locate the farmland. The work was mainly carried out in three aspects:

First, data sources were expanded. According to the objectives and key contents of the audit work, we visited the relevant government authorities and had discussions with them, with an accurate understanding of the management entities, the implementation of construction responsibilities and the construction and utilization of information system. We collected 11 types of data from 5 departments and made an overall analysis of the data in advance.

Second, data cleansing was carried out. For audit, spatial data conversion processing software converted DWG, TXT and other types of data into data in SHP, available for the unified GIS analysis software. Then, the GIS analysis software, featuring projection transformation, converted the data of different coordinate systems into data of the same coordinate system, with the data compared and analyzed in the same coordinate system.

Third, data analysis and extended verification were conducted. For example, the data on high-standard farmland construction and latest land survey data can be superimposed on previous orthographic remote sensing image data for statistical analysis, to reveal a false report on the area of high-standard farmland. The data on high-standard farmland construction and uncultivated land data can be superimposed on previous orthographic remote sensing image data for analysis, to reveal the “non-grain” and “non-agricultural” usage of high-standard farmland by artificial cognition and extended verification. The data on high-standard farmland construction can be superimposed on the data on permanent basic farmland for comparison, to check whether high-standard farmland is protected as permanent basic farmland or not.

Diagram of applying GIS to the audit of high-standard farmland construction

3. Following up audit rectification is important to improve the effectiveness of audit

With regard to the problems identified during the audit of high-standard farmland construction, China’s auditing institutions have strengthened oversight and inspection of the rectifications:

First, requirements for rectification is clarified. Every year, the audit department prepares the list to cover problems identified by auditing and the audit suggestions, and develops rectification requirements and measures for every problem with limited time, forming a rectification ledger. Then, the audit team follows up and supervises rectification in accordance with the ledger to ensure that every problem is solved. At present, with the information technology and electronic office system, the CNAO has established a relatively complete post-audit follow-up system, enabling the audit institutions at all levels to enter, query and follow up the rectification progress.

Second, the results of rectification are inspected. The auditees are responsible for comprehensively rectifying the problems identified in the audit and regularly reporting the progress and results of rectification to the audit team and higher authorities. The audit team is responsible for reviewing and inspecting all the results of rectification, to ensure the authenticity, completeness and legitimacy. For example, for the rectification of problems concerning finance and assets, the audit team should check the accounting documents on turning the funds over to the national treasury, returning the funds to the owner, paying back taxes or giving the funds back. For problems concerning project construction, the audit team should check the results of project rectification to ensure the effectiveness of reconstruction and renovation. For what is related to improving policy implementation and rules and regulations, the audit team should check the evidence on related policies and the revision of relevant rules and regulations. For any solved problems, the number can be “canceled” in the ledger.

Third, interdepartmental collaboration is strengthened. For common or emerging problems identified in the audit, the audit team should urge the relevant central authorities to enhance rectification at source by improving the system, establishing efficient standards, and boosting supervision and assessment. Measures are taken to solve problems after occurrence and prevent potential problems before occurrence. In the audit of high-standard farmland construction, the audit team urges the departments of agricultural and rural affairs to improve the annual construction task and statistical dispatching system, to solve the problem of misrepresentation of farmland area. For the problem that high-standard farmland is arbitrarily used for other purposes, the audit team urges the departments of agriculture and natural resources to make overall planning for construction, management and maintenance, to improve the permanent basic farmland delimitation mechanism.