The Ministry of Finance (MOF) said the funds included 5.1 billion yuan for purchasing improved strains of seed, 1.1 billion yuan for machinery, 900 million yuan to cover soil testing before applying fertilizers, and 1.2 billion yuan for purchases of dairy cattle and related training.

The subsidies constitute part of the proposed budget spending for this year, which was presented on March 5 to the national legislative body for approval, and is expected to be passed at the end of the ongoing session of the legislature next week.

Total proposed subsidies for farmers would reach 8.87 billion yuan in 2007, up 48.6 percent year on year, said the MOF.

The government has expanded the range and area of improved strains of rice seeds and allocated 500 million yuan for improved strains of cotton seeds.

The subsidies are included in the government's measures to improve agricultural production.