Fundamental rural reform, encouraging professional investors, family farms and greater engagement in production by rural cooperatives, is approaching in China, Premier Li Keqiang said.
Li also pledged to push through economies of scale to boost farmers' profits.
He made the comments during a trip to Heilongjiang province, China's largest crop producer, this week.
Li called on economies of scale to be implemented in the agricultural sector by setting up cooperative enterprises. But this reform, he said, should be conducted with the consent of farmers and ensure the strict protection of their rights.
The reform is likely to change the fundamental rural policy that has been implemented for more than three decades, including the household contract system, which emphasizes leasing collectively-owned arable land to rural households.
Heilongjiang province saw a devastating flood in August that caused the evacuation of hundreds of thousands of residents.
Li visited families and a resettlement center established for those who lost their homes and to help struggling villagers. He also visited a farm machinery center and a grain depot, where he stressed the development of modern agriculture depends on reform.
"Agricultural reform should respect the innovation and willingness of farmers, and the most important purpose of reform is to ensure the well-being of farmers and improve their lives," he said.
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