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The Ministry proposed to solve the inevitable disputes caused by land requisition by offering employment training and social security benefits to farmers left landless.
It also expected many farmers who lose their land will be forced to join the growing population of migrant workers trying to earn a living in the country's cities.
The training will mainly target young and middle aged farmers and social benefits will be provided to older generations, who are likely to receive medical care, pension and cash.
The government's land requisition makes it hard for the landless farmers to survive, so training and social security benefits are very important, the sources said.
Local governments should ensure funds are used to implement these measures. No other company or individual should use the money for any other purpose, the sources continued.
The farmers whose land is acquired by the government for urban planning can also receive small loans at preferential interest rates.
In the past, compensation for farmers was not well managed and was too low, the sources said, adding that if the total compensation for their land cannot provide the farmers with a standard equal to their original living conditions, the government should offer more.
Auditor-General of the National Audit Office Li Jinhua offered an example of bad land deals the case of farmers in Wuhan, capital of central China's Hubei Province. They received compensation of only 4,800 yuan (600 U.S. dollars) per mu (0.067 hectares) when they were entitled to receive 189,000 yuan (23,625 U.S. dollars) per mu.