Over VND1,900 billion revenue from farm economy

Total investment of over VND2,000 billion

According to Hung Yen Department of Agriculture and Rural Development (HYDARD), in 2021, the whole province has 729 farms meeting standards prescribed in Circular No. 02/2020/TT-BNNPTNT (an increase of 15 farms compared to 2020) including 44 for cultivation, 580 for livestock, 18 for aquaculture and other 87 for general activities.

The total number of laborers in farms is over 2,400 (up 2.1% compared to 2020) with an average of 4 laborers/farm. The total area of land used by farms is 673ha (an increase of more than 44 ha compared to 2020) with an average of 0.92ha/farm. In which, more than 158 ha are for cultivation, 69 ha for aquaculture, 85 ha for general activities, and 359 ha for livestock.

The promotion of farm economic development has helped effectively exploit the land for agriculture and aquaculture, turning low-lying areas with low economic efficiency into large-scale production zones associated with market demands.

Total investment capital of over VND2,000 billion (excluding land value) has been poured into farms with an average of 2.9 billion VND/farm, reaching an increase of more than VND298 billion compared to 2020. In which, farms for cultivation, aquaculture, general production, and livestock account for more than VND61 billion, VND32 billion, VND155 billion, and VND1,800 billion, respectively.

Investment capital in farms construction and development is mainly from farm owners (80%). It also includes loans from banks and other credit institutions (20%). About 560 farms have been benefiting from development promotion and support policies of the State worth about VND8 billion.

Regarding production and business results, according to statistics, the total revenue of farms in the province in 2021 reached more than VND1,900 billion (an increase of VND66 billion compared to 2020), an average of more than VND2.6 billion /farm. In which, the revenue from farms for cultivation, livestock, aquaculture, and general activities stood at over VND65 billion, VND1,600 billion, VND42 billion and VND175 billion, respectively.

In addition, production linkage chains have developed both in form and scale, and have been replicated in many other localities. The farms have linked together and cooperated to establish 190 cooperatives, 276 groups of agricultural cooperatives; form many concentrated agricultural production areas such as flower and ornamental plants (in Van Giang District), lychee (in Phu Cu District), livestock (in Yen My, Khoai Chau and Van Lam Districts), aquaculture (in An Thi and Phu Cu Districts) and cage fishing (in Kim Dong District and Hung Yen City)...

Farm owners in the province are given priority to attend training courses on management, trade promotion, and branding. They also participate in business conferences on the connection of supply and demand. In particular, they had joint training classes on online sales and e-commerce platforms such as Voso, Postmart, Shopee, Ladaza and studied about social networks such as Zalo and Facebook...

Limitations and difficulties

According to the HYDARD, in recent times, the provincial People's Committee has issued many policies to promote the development of farms in the province, contributing to well implementing the goal of agricultural restructure and building new rural areas.

However, the province still faces many difficulties during the implementation process such as those due to the Covid-19 pandemic which has greatly affected, even broken the chain of production and consumption of agricultural products in the province. The selling price of farm products especially pork has fluctuated constantly and lacks stability.

The high prices of materials, fertilizers, and animal feed caused a significant drop in profits of the farms. Although the infrastructure for agricultural production has been invested, it has not been synchronized so has not met the needs of local agricultural development. Farm economic development is still spontaneous, not following local plans resulting in obstacles for disease management and environmental sanitation.

The application of new scientific and technological advances to production, cultivation, and husbandry is still limited. Farms themselves have not actively researched market needs, built brands, promoted products, participated in e-commerce, fairs, and exhibitions...

HYDARD has proposed the MARD consulting the Government to issue support policies in solving difficulties, encourage and promote sustainable development for the farm economy. It has suggested strengthening trade promotion activities to help the farm introduce their products, expand markets, and feel secure in production. It also proposed more financial support for the province to organize training classes, build typical and effective farm models as a basis for directing and scaling up...