JOINT CIRCULAR

GUIDING THE CRITERIA FOR DETERMINATION OF FARM ECONOMY

In recent years the farm economy has vigorously developed in almost all localities across the country, forming a new production model in our agriculture and countryside. Due to a lack of uniform regulations of the ministries and central branches on the farm criteria, the localities have set forth by themselves farm criteria on the basis of the nature of commodity production, the scale of land acreage, cattle heads, etc. to make statistics on the farm economy in their localities or regions. As a result, such statistics are not really precise and the borderline between the household economy and the farm economy is not clearly defined, thus causing difficulties for the evaluation of the real situation and the formulation of policies on farm economy. The Government has issued Resolution No. 03/2000/NQ-CP of February 2, 2000 on farm economy. In furtherance of the Government’s Resolution, the Ministry of Agriculture and Rural Development and the General Department of Statistics hereby jointly provide the following guidance on the criteria for farm economy:

I. SUBJECTS AND PRODUCTION BRANCHES TO BE CONSIDERED FOR FARM ECONOMY DETERMINATION

Households of farmers, retired State workers and employees and armymen, various types of urban households and individuals engaged in production (including agriculture, forestry and aquaculture) or agricultural production as the major activity and the provision of non-agricultural services in rural areas as sidelines.

II. SPECIFIC CHARACTERISTICS OF FARM ECONOMY

1. The farms’ objective is to produce agricultural, forestrial and aquatic commodity products on a large scale.

2. The extent of concentration and specialization of production conditions and elements is markedly higher than that of the production by farmers’ households, which is reflected in the production scale in terms of land, cattle heads, labor and the value of agricultural, forestrial and aquatic commodity products.

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III. QUANTITATIVE CRITERIA FOR FARM ECONOMY DETERMINATION

To be determined as a farm, a household engaged in agricultural production, forestry or aquaculture must achieve simultaneously the two following quantitative criteria:

1. The average yearly goods and services output value:

- From 40 million VND or more, for northern and central coastal provinces;

- From 50 million VND or more, for southern and Central Highland provinces.

2. The production scale must be relatively large and much larger than that of household economy in the corresponding production branch or economic zone.

a/ For cultivation farms

(1) Farms of annual crops:

+ 2 or hectares more, for northern and central coastal provinces;

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(2) Farms of perennial trees:

+ 3 hectares or more, for northern and central coastal provinces;

+ 5 hectares or more, for southern and Central Highland provinces;

+ 0.5 hectare or more, for pepper-growing farms.

(3) Forestry farms:

+ 10 hectares or more, for all regions of the country

b/ For husbandry farms

(1) Raising big cattle: buffaloes, cows, etc.

+ Having regularly from 10 head of cattle or more, raised for reproduction and milk;

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(2) Raising domestic animals: pigs, goats, etc.

+ Having regularly more than 20 goats or more than 100 sheep, raised for reproduction.

+ Regularly from 100 porkers or more (excluding suckling pigs), from 200 goats or more, raised for meat.

(3) Raising poultry: chicken, ducks, gooses, etc.: Having regularly from 2,000 poultries or more (excluding those of under 7 days old).

c/ Aquaculture farms

- Having 2 or more hectares of water surface for aquaculture (one-plus hectare for industrial raising of shrimps).

d/ For farm, forestrial and aquatic products of particular nature like: grown flowers, ornamental plants, mushrooms, kept bees, breeds of aquatic products and specialties, the determination criterion is the commodity product output value (criterion 1).

IV. ORGANIZATION AND DIRECTION OF IMPLEMENTATION

1. Basing themselves on the criteria prescribed in this Circular, the presidents of the People’s Committees of the provinces and centrally-run cities shall direct various branches and levels under the guidance of the provincial/municipal Agriculture and Rural Development Departments and Statistics Departments to review the organization models of agricultural and forestrial production and aquaculture in the provinces and cities in order to investigate and determine the correct numbers and types of farms in their respective localities in conformity with the provisions of this Circular.

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The Office’s Director, the heads of the units attached to the Ministry of Agriculture and Rural Development and the General Department of Statistics, the directors of the provincial/municipal Agriculture and Rural Development Departments and the directors of the provincial/municipal Statistics Departments of the provinces and centrally-run cities shall have to implement this Circular.

FOR THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT
VICE MINISTER




Cao Duc Phat

FOR THE GENERAL DIRECTOR OF STATISTICS
DEPUTY GENERAL DIRECTOR




Le Manh Hung