The global economic environment is directly impacting the growth of farmers' incomes According to Chen Xiwen, an obvious problem in rural areas during the past few years is the slow growth of farmers' incomes. Demand and supply of farm products are stable to an extent unprecedented since the founding of New China. However, problems regarding the increase of farmers' incomes present the most serious challenge to the agriculture field since the implementation of the reform and opening up policy. The margin of increase of farmers' incomes has fallen four straight years, and the incomes of farmers engaged in cotton and grain production and farmers who depend on farm products are also declining. Chen Xiwen believes these drops are related to the international and domestic economic environment and to reform measures that are not mutually supportive.
Economic growth is a global issue.
The whole world is facing a problem of excessive supply. In other words, the lack of affordable goods to purchase exists everywhere, including in China's agricultural industry. The prices of farm products have been declining worldwide since 1996. It is still hard to tell whether this decline will continue or not. The situation is similar in China.