(Yicai) May 29 -- New farmers must participate in rural development through a social enterprise model because neglecting local community needs, farmers’ rights, and ecological protection makes it difficult to establish a long-term presence in rural areas, Shi Yan, founder of an organic farm in Beijing, said in an interview with Yicai.

The nature of rural revitalization means new farmers cannot simply pursue profit maximization, said Shi from Fenxiangshouhuo Agricultural Development Co., Ltd. Instead, they need to build diversified win-win mechanisms that balance environmental sustainability, protection of farmers’ interests, and employee development. Her comments reflect the growing role of environmental, social, and governance principles in China’s rural economy and sustainable development efforts.

Bridging Small Farmers and Modern Markets

Shi said rural farmers are often highly dispersed, while modern markets are heavily organized, creating structural challenges for small agricultural producers. In her view, new farmers can help bridge this gap by promoting a certain degree of organization among farmers and helping them connect with larger markets.

“When small, dispersed farmers interact with an intensive market, they often face the challenge of information asymmetry, and no single small farmer's product can directly enter large supermarkets,” Shi said. She added that the new farmer community can use its unique positioning to build communication bridges between small farmers and large markets.

Fenxiangshouhuo Agricultural Development joined the United Nations Global Compact (UNGC) in 2024. The company operates businesses including ecological agriculture that combines crop cultivation and animal husbandry, bread processing, and educational and research services, making it a comprehensive enterprise spanning agriculture, industry, and services.

Advancing Ecological Agriculture Through ESG Practices

Shi said Fenxiangshouhuo Agricultural Development refuses to use chemical pesticides and fertilizers in agricultural production and instead adheres to an organic farming model. The company improves soil quality through ecological technologies, including microbial communities and fully biodegradable films. According to Shi, these technologies help preserve the natural quality of agricultural products while protecting the long-term fertility of farmland.

She added that Fenxiangshouhuo Agricultural Development’s orchards do not use herbicides. Instead, the company relies on weeds to provide habitats for insects while allowing ecosystems to naturally maintain soil moisture and water retention. “This is the value of weeds, and it is the power of nature,” Shi said.

The practices of new farmers represented by Shi and Fenxiangshouhuo Agricultural Development provide a vivid example of ESG principles in action. By integrating economic development with environmental sustainability and social responsibility, this approach not only injects vitality into China’s rural economy but also offers a sustainable development path for young people in rural areas.

The interview is part of the “ESG+20 Sustainable Development Leadership Interview Series,” jointly launched by the UNGC, CICG Asia-Pacific, and Yicai. The program features dialogues with 20 Chinese entrepreneurs and examines their insights, achievements, and leadership in sustainable development, ESG, and corporate social responsibility through interviews and field visits to their companies.

Editors: Tang Shihua, Emmi Laine