This sector has developed rapidly since reforms in the rural areas began in 1978. The major reforms were: the household contract responsibility system, which restored to the farmers the right to use land, arrange farm work, and to dispose of their output; canceling the state market monopoly of agricultural products, and of price controls over most of agricultural and ancillary products; abolishing many restrictive policies, allowing farmers to develop diversified business and set up township enterprises so as to fire their enthusiasm for production. The reforms emancipated and developed rural productive forces, promoted the rapid growth of agriculture - particularly in grain production - and the optimization of agricultural structure. The achievements have been remarkable.

In the 1990s,'s agriculture and rural economy faced unprecedented difficulties and challenges. But development momentum maintained fairly good nonetheless, with most products in surplus and supply and demand basically in balance every year. The year 2004 was a turning point, with grain production of 469.47 million tons, reversing a five-year decline. Nowleads the world in output of grain, cotton, oil plants, fruit, meat, eggs, aquatic products and vegetables. 

Output per capita has risen significantly. In 2004, grain output wasper capita; per capita figures for meat (pork, beef, and mutton), milk, and aquatic products were above world averages, reaching,, and, respectively.