Permalink : http://hdl.handle.net/2115/71380

State Farms in Hainan Province are specialised in tropical trees (rubber and coconuts). In 1984, reforms opened the doors for workers’production responsibility. The only exception was rubber-tree plots controlled directly by the state. All the economic activities beyond these plots controlled directly by the state were recognised as the‘Self-Employed economy’and were encouraged accordingly. This Paper examines Nanbin Farm. At the end of the 1980s, most coconut trees were felled to make room for counter-seasonal vegetable production. The land was then distributed among plantation workers at 30 a each. Although land still belonged to the state, workers’plots are heritable. This system was similar to rural contractual land for farmers elsewhere in China. Soon, land-leasing among workers increased; and so, did lease rent. The combination of self-employed economy and counter-seasonal vegetables pushed outputs up, which in turn increased waged workers to a large number, as well as the wage rate. Even so, there was a labour shortage in this sector. As a result, workers from China’s mainland became the main source of labour supply. The sale of counter-seasonal vegetables was conducted between wholesale dealers and vegetable producing households. After the deal, vegetables were packed, loaded on lorries, and sent to various mainland locations. Eventually, the average annual net income of Nanbin counter-seasonal vegetable farming households reached RMB 22,000 per capita, which was far higher than its counterparts in other sectors. Such a high income prevented drain of workers, workforce aging and decrease in labour input. A stable society emerged.