Approximately 45 years ago, Chinese farmers operated within the "people's commune" system, adhering to a planned economy that restricted their independence. One momentous day, 18 farmers from Xiaogang Village in Fengyang County, Chuzhou City, Anhui Province, gathered and imprinted their red fingerprints on a "life and death contract." This daring act signaled their decision to take the risk of initiating a household contract responsibility system that divided farmland — then owned by the people's commune — into pieces for each family to cultivate. The news quickly spread, inspiring various regions to follow suit, earning Xiaogang Village the title of the "first village in China's rural reform."

The memorial hall of the household contract responsibility system in Xiaogang Village, Fengyang County, Chuzhou City, east China's Anhui Province.

During his visit to Xiaogang Village on April 25, 2016, Chinese President Xi Jinping remarked, "What they did with their family and lives back then became a catalyst for China's reform and a symbol of China's transformation." President Xi toured the farmhouses, visited the thatched cabin where the 18 villagers met and signed the "life and death contract," held a discussion meeting with farmers in the village, and expressed sincere hope that Xiaogang Village would continue to serve as a demonstration in deepening rural reform.

Separation of ownership, contract and management rights

In recent years, the farmers of Xiaogang Village, pioneers of rural land reform from 45 years ago, have spearheaded efforts to realize the separation of rural land ownership right, contract right and management right. The separation has allowed farmers to retain the contract right over their allotted land and only transfer the management right if they choose to lease the land to others, mortgage it to banks or invest it in a cooperative in exchange of shares, providing institutional support for moderate-scale operations.