Major Adjustment to Cultivated Land Protection Policy: Integrating "Compensation for Occupation and Reclamation" and "Entry-Exit Balance" into a Comprehensive "Occupation-Reclamation" Framework

Major adjustment to farmland protection policies: Integration of "replacement balance" and "entry-exit balance" into a comprehensive "overall replacement balance."

Recently, China's farmland protection and compensation balance system has undergone a major reform. The former Ministry of Natural Resources document No. 166 issued in 2021 has been officially abolished. For years, the "farmland entry-exit balance" management system has been fully integrated into a new "comprehensive large-scale compensation" framework, ending the previous dual-track control model of "construction land compensation balance" and "agricultural land entry-exit balance." This reform unifies rules, establishes a single ledger, and enables comprehensive planning for farmland use regulation. It represents a critical institutional upgrade to safeguarding China's 1.8 billion mu farmland red line and strengthening food security.

This new policy achieves comprehensive coverage and unified standards for cultivated land control. Previously, only non-agricultural construction occupying cultivated land required balancing occupation with replacement, while converting cultivated land to orchards, forests, or facilities for agricultural restructuring followed a separate entry-exit balance mechanism. Under the reform, all actions resulting in cultivated land reduction—except those exempted by law such as ecological retirement and damage from natural disasters—must now comply with a unified "large-scale occupation-replacement" obligation. Additionally, the policy formally establishes a rigid "replacement-based occupation, provincial-level coordination" mechanism: the total amount of newly added supplementary cultivated land at the provincial level determines the allowable scale of occupied cultivated land. This further tightens compliance thresholds for land development and agricultural restructuring, standardizes the trading and circulation of cultivated land quotas, and effectively addresses longstanding industry pain points including inconsistent dual-track management standards, difficult coordination, and high compliance risks.

Following the implementation of policy reforms, compliance requirements for farmland control, project approval, and quota integration have been comprehensively upgraded. The previous dual-track management model of "non-agricultural land compensation" and "agricultural land conversion" has been completely replaced. New unified and stringent technical and compliance standards now apply to farmland occupation, agricultural structural adjustments, and the replenishment of newly added farmland. Xingyuan Group's core services fully cover all key scenarios of this reform. We provide end-to-end specialized technical services tailored to the new "Large-Scale Compensation" control system. Our offerings include: land use change monitoring and surveys, planning and design for farmland supplementation projects, farmland quality evaluation and acceptance, reporting and integration of new farmland quotas, and development of specialized compliance plans for large-scale compensation. These services precisely align with the regulatory scenarios outlined in Document No. 166 and meet the requirements of the new policies. With years of deep expertise in integrated land consolidation and spatial planning, our core team is well-versed in bridging old and new policy frameworks and meeting provincial and municipal audit standards. We accurately address the new "compensation-based occupation" and "whole-area coordination" requirements, efficiently resolving compliance challenges related to farmland occupation and agricultural land restructuring. We ensure projects are legally compliant from start to finish, leveraging our professional expertise to help regions safeguard the red line on cultivated land and achieve high-quality utilization of land resources.