1. Going forward, we must abandon the practice of extensive cultivation with low yields—spreading out over too much land and letting it lie fallow. The cultivated area is not too small now; on the contrary, it is excessive. It makes no sense that more than 200 million workers are engaged in farming. We should gradually reduce the acreage, adopt intensive farming methods, plant less but well, and achieve higher yields per unit area. Deep plowing should be progressively increased to a depth of three feet; only with deep tillage can water and fertilizer exert their full effectiveness. In the future, if we can raise per-unit yields to 10,000 jin, each person will only need two-tenths of an acre to meet their food needs.

2. Some communes focus solely on grain and tubers, lacking cash crops for exchange, which leaves them unable to pay wages—this is undesirable. Henceforth, they should cultivate more marketable cash crops. Starting next year, all people’s communes must produce both staple grains and exchangeable cash crops such as livestock, fish, and medicinal herbs.

3. The issue of exchange should not be taken lightly. It is wrong for some to prematurely dismiss exchange as unimportant. Exchange is permanent; even ten thousand years from now, it will still exist. No commune can be entirely self-sufficient. At present, we must not belittle exchange. Disregarding commodity production is detrimental to current economic development.

4. There are two paths forward. Labor shortages are a major problem. One approach is to shift from extensive, low-yield farming to intensive, high-yield practices, which can save labor, water, and fertilizer. The other is mechanization; for now, our priority lies in reforming agricultural tools. Ultimately, we aim to have half of the workforce engaged in industry, so that our country will begin to take shape.

Labor organization and division of tasks should be appropriately standardized. It is disadvantageous if industrial and agricultural labor remain fluid and unfixed.

5. Regarding distribution within the communes: After collectivization, remuneration should primarily be based on work contribution. The provision system should not be overextended. A balanced ratio between provisions and wages—say, fifty-fifty—would be appropriate. Wages must maintain a certain differential; excessively narrow grade differentials would violate the principle of payment according to work and could result in income reductions for about 25 percent of workers, particularly those who are more productive, thereby undermining production. Similarly, grade differentials among cadres should not be too small, although overly large ones are also undesirable.

6. The transition from collective ownership to全民ownership in the communes will not be brief. The Beidaihe Resolution on the communes envisages a timeframe of three to four years at the fast end and four to five years at the slow end; I would add that it may take even longer. At Anshan Iron and Steel, a worker produces goods worth 18,000 yuan annually, with costs of 10,000 yuan, wages of 800 yuan, and savings of 7,200 yuan. By contrast, a farmer’s annual output is barely 700 yuan; it takes twenty-five farmers to match the output of a single steelworker. Steel products can be allocated nationwide, whereas there are few agricultural commodities amenable to national redistribution. Therefore, if the transition can be completed within twelve years, that would already be quite good.

7. Whatever work one undertakes—for example, building people’s communes—one should avoid superficial engagement. Thoroughly studying a single commune, dissecting it like a sparrow, allows for confident action. The same applies to studying Marxism-Leninism: reading extensively without achieving genuine understanding is of little value. Recently, I have been carefully examining reference materials, revisiting them multiple times; each additional reading yields further insights.

8. Next year, we must vigorously promote agricultural production. Provincial first secretaries should simultaneously oversee both industry and agriculture, while county first secretarysshould prioritize agriculture, except in a few key counties where industrial development is a priority.

9. Is it possible to forgo the reliance on chemical fertilizers? (This year, chemical fertilizer production reached 1.8 million tons, but next year it will be reduced to 600,000–700,000 tons, and imports will also be curtailed.) Last year, without any chemical fertilizers, we still managed to produce 80 billion jin of grain and 80 million dan of cotton, demonstrating that it is feasible to largely dispense with inorganic fertilizers and rely instead on organic manures and locally produced soil-based fertilizers. Furthermore, could we bypass tractors and instead pursue mechanization and electrification through rope-drawn implements?