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Village-wide operation: How do people come? How is the land used? Who pays? This 'billion-yuan village' does it this way

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2024-09-19

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Where do the people come from? How is the land used? Who provides the funding? These are three crucial questions that must be addressed for rural development. Using Nongke Village in Chengdu's Pidu District, a village I've visited many times and known as a "billion-yuan village," as an example, I will share details about the people, land, and funding aspects of rural development.

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Editor-in-Chief | Yang Ming

Editor | Jing Xiangyuan

Source | Zhuangzhu Bang

Nongke Village receives 2 million visitors annually, making it China's number one farmhouse tourism village and the birthplace of farmhouse tourism in China. Using a development model of "land governance + 4.0 version homestay cluster + rural living room + whole village development," and having gone through four stages—the initial stage, development stage, consolidation stage, and leapfrog stage—it has grafted farmhouse tourism onto its flower industry foundation, becoming a national model for rural tourism and earning the title of "Birthplace of China's Farmhouse Tourism" and one of "China's Ten Most Charming Leisure Villages."

Nongke Village's development history can be summarized as four arduous entrepreneurial experiences:

First entrepreneurial venture: In 1983, Nongke Village implemented land contracting reforms, breaking away from the traditional grain-growing model and shifting to the flower and tree industry.

Second entrepreneurial venture: After 1987, with the rise of farmhouse tourism, Nongke Village achieved a coordinated development pattern of primary, secondary, and tertiary industries.

Third entrepreneurial venture: After 2000, with the concerted efforts to build a new countryside, farmhouse tourism entered a stage of standardized development, becoming a national AAA-level scenic area. In 2006, the China National Tourism Administration awarded Nongke Village the title of "Birthplace of China's Farmhouse Tourism."

Fourth entrepreneurial venture: Starting in 2018 with the commencement of rural revitalization, Nongke Village upgraded and rose again, creating an international rural living room and a themed homestay cluster.

However, Nongke Village also encountered operational and management difficulties, such as the weakening of the primary industry (flower and seedling cultivation), the decline of the tertiary industry (farmhouse tourism), and a decreasing number of profitable farmhouses in the core scenic area. So how did they overcome the challenges related to people, land, and funding, and gradually grow stronger?

Where do the people come from?

Government guidance + market operation—finding people

Under the guidance of the government, to upgrade the core scenic area of Nongke Village, You'ai Street guided the local leading enterprise, Xu Family Courtyard, under "Sichuan Xu's Wisdom Cultural Tourism Co., Ltd." to cooperate with the village collective company, "Chengdu Haitang Funong Agricultural Technology Co., Ltd." to establish Chengdu Nongke Village Scenic Area Management and Operation Co., Ltd., responsible for the overall planning, packaging, marketing, investment attraction, and operation of Nongke Village. It was officially launched on March 2, 2018.

They hired 10 expert advisors from the Rural Elite Institute, 18 mentors, 5 leading figures in wealth creation, 24 returnees, 72 skilled craftsmen, 2386 new and old villagers, and a total of 56 businesses (including businesses and companies).

How is the land used?

Combining the three-rights separation system, various models such as transfer, joint construction, equity participation, leasing, and entrustment are adopted. By attracting operators, investors, developers, and service providers, as well as introducing teams, capital, think tanks, brands, and major IPs, platform funds and strong investors are introduced to conduct "bird-in-a-cage" replacement of existing businesses.

Relying on the development concept of the "Pan-Nongke Village" international tourism resort, it forms a core "one heart" Nongke Village scenic area, "two axes" (IT Avenue and Welcome Road), and "three zones" (Nongke Village AAAA scenic area, Shiyang high-quality flower and tree viewing area, and Ziyun Yangxiong's hometown cultural area). It promotes the transformation and upgrading of farmhouses (rural hotels) to create an "International Rural Living Room and Themed Homestay Cluster."

Who provides the funding?

Government funding—infrastructure construction

Collective funding—public service facilities

Farmer funding—courtyard renovation

Enterprise funding—industrial development

Using a diversified mixed system model of one village leading ten villages, through "one courtyard, one theme, three guarantees, ten assistances, and joint operation," 36 super brand IPs are introduced, attracting cultural and creative, artistic, Confucian, pottery, soup culture, internet celebrity, tea ceremony, original wood, and strange stone themed homestays, 72 finely classified products, and 500 creators.

1. Entrepreneurial support: Enjoy government support policies for rural tourism innovation and entrepreneurship.

2. Operational support: Unified publicity, customer acquisition and traffic generation, and promotional activities.

3. Financial support: Business loans, shareholder crowdfunding, and renovation subsidies.

Ten assistances: Policy coordination, development suggestions, product combination, resource integration, brand packaging, recruitment and investment attraction, media online promotion, press releases, supply chain, and franchise.

Joint operation: Guaranteed rent (farmers) + profit sharing (management fees + designated room operating rights) = win-win.

Throughout the process, villagers first receive guaranteed rent income, then participate in collective profit sharing, can also participate in scenic area jobs doing services, and can also start businesses in the village to make money.

According to Mr. Fan Guohui, the honorary village head of Nongke Village: In the beginning, attracting projects and funds presented enormous challenges. When we established the operation and management company, our initial capital was only 200,000 yuan, which was barely enough for investigation and reception expenses. A year later, Nongke Village attracted more than 160 investment investigation teams and successfully introduced more than a dozen themed businesses from returning entrepreneurs, including art design, traditional Chinese medicine soup culture, tea ceremony Zen meditation, Confucian cultural and creative products, and children's amusement parks, driving four groups of original villagers to return home to start businesses and upgrade, with a total investment exceeding 100 million yuan.

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