Abstract
China has seen a growing problem of desertification in recent years. Desertification has a large impact on the current shape of agriculture and stock breeding. About 70% of the total population live in rural areas in China. Forestry projects allow sustain able development of the agricultural economy and are considered to be a lifeline for the farmers. It also offers solutions to environmental problems and ensures a better future for the farmers as well. The study area of this article is the Y village in the Ohan area of inner Mongolia where the desertification problem is more severe than any other place in China. Investigating the correlation between afforestation and the financial income of the farmers, the following two points were found out. First, the farmer's income has increased 4.39 times (about 439%) as a result of the promotion of afforestation implemented under a contract that was part of the Goko initiative to give them an incentive. Goko is resources development in uncultivated mountainous areas, uncultivated slopes, uncultivated ditches, uncultivated sand dunes and uncultivated desert. Second, Goko was only a viable solution for a few financially well-off farmers because the contracts require deposits in advance. As a result, a discrepancy arose between those farmers who could afford the contract and those who couldn't, and the class division widened accordingly. Overall the majority of the farmers were able to escape poverty but it is difficult to foresee any further improvements in income. In conclusion, a growing difference in income can be expected if the situation continues as it is. Based on these findings we conclude that there is a need for policy improvement to increase the income of lower income farmers while promoting forest planting in order to allow development and sustain afforestation in the future.
