Deep Dive: Turning Forest Resources into Assets — A Field Report on Liaoning's Collective Forest Tenure Reform Pilot

Deep News
3 hours ago

In the forested hills of Jiabe Village, Yongling Town, Xinbin Manchu Autonomous County, workers at an under-canopy ginseng base are busy harvesting seed pods. This scene captures the essence of a transformation unfolding across Liaoning's vast woodlands.

Liaoning is home to 5.3 million hectares of forest, with collective forests accounting for 88% of the total woodland area, making it a major collective forest province. This expansive green expanse holds immense potential, directly impacting the livelihoods of countless forest farmers. The province's forestry and grassland output value exceeds 70 billion yuan, yet the question of how to unlock even greater value has driven reform efforts for years.

In 2005, Liaoning became a pioneer in northern China by launching collective forest tenure reform, initially achieving the goals of securing mountain rights, stabilizing tree ownership, and reassuring forest farmers. Fast forward to 2025, the province issued the Implementation Plan for Deepening Collective Forest Tenure Reform in Liaoning Province, introducing new policies and measures to address emerging challenges. These reforms aim to promote high-quality development of the forestry industry, transforming resources into assets, living trees into liquid capital, and forest farmers into shareholders.

These reform initiatives are now taking root in the mountains of eastern Liaoning. As a key part of the northeast forest region, this area boasts 38.89 million mu of forest with a coverage rate exceeding 70%. The region's rich mountain and forest resources provide ample opportunity for implementing reforms. Xiuyan Manchu Autonomous County in Anshan, Xinbin Manchu Autonomous County in Fushun, and Huanren Manchu Autonomous County in Benxi have been designated as provincial-level pilot areas for this reform.

Revitalizing Resources: Forest Land Becomes a 'Green Bank'

"This ginseng base is now like a bank, we can withdraw money every year," said Shen Deyi, the head of the under-canopy Korean ginseng base in Guaizigou, Jiabe Village, Yongling Town, Xinbin County. The base has entered its seed harvesting period for the year. "Last year, we harvested over 3,000 jin of ginseng seeds, with an output value exceeding 300,000 yuan. This year, we expect the output value to reach 700,000 yuan. Once we enter the full production period in 2028, fresh ginseng yields are projected to hit 1,500 jin per mu, with an output value exceeding 50,000 yuan per mu."

In 2021, Shen Deyi contracted 120 mu of larch plantation forest to cultivate Korean ginseng in the understory space. Previously, the forest land was fragmented among multiple households, largely underutilized, leaving farmers with rich resources but little benefit. Now, after consolidation and transfer, the forest land is being developed efficiently, unlocking greater economic value. This model of moderate-scale forestry operation is exactly what the province's forest tenure reform encourages.

"Last year, we proposed implementing the reform policy of separating ownership, contracting rights, and management rights for collective forest land, clarifying that management rights can be legally transferred through leasing, equity participation, or cooperation. This provides institutional guarantees for the development of the forestry industry," explained Wang Libo, Director of the Reform and Development Division of the Provincial Forestry and Grassland Bureau. In 2025, the province adjusted nearly 700,000 mu of public welfare forest to commercial forest, further freeing up forest space. To protect the legitimate rights and interests of farmers and forestry operators, natural resources and forestry departments at all levels are accelerating the registration of forest rights in real estate, incorporating collective forest rights registration into routine real estate registration and legally conducting forest rights mortgage registration.

The benefits of revitalizing forest land extend beyond planting output to creating local employment opportunities. "I live in a nearby village, so my schedule is flexible. I come here when I have free time to supplement the family income," said worker Lu Shanshan, who earns 130 yuan per day.

However, the development of the forestry economy must always prioritize ecological protection. "Through tending the Korean ginseng, the soil fertility has improved, the soil is looser, the density is more reasonable, and the trees are growing faster," Shen Deyi said, pointing to a nearby larch. "A couple of years ago, this tree was quite thin; now it's grown to nearly one arm-span in circumference."

The reform not only activates forest space but also promotes the development of the under-forest economy through scientific management and relaxed forest tending controls. In 2022, Lu Jiangfu, head of Xinyi Traditional Chinese Medicine Planting Farm, transferred 12 hectares of artificial larch forest land in Jiajiabao Village, Yanghe Town, Xiuyan County, to scale up the cultivation of Epimedium, a genuine northeastern Chinese medicinal herb. This choice was deliberate. With years of experience in the Chinese medicine industry, Lu Jiangfu understands the market well: demand for Epimedium is strong, prospects for artificial under-forest cultivation are broad, and the local altitude and latitude provide a natural foundation for imitation wild planting.

The forestry industry also needs financial support. "In 2023, I took out a loan of 680,000 yuan from the Liaoning Rural Commercial Bank Xiuyan Branch, which I'm about to pay off in September. This year, they're planning to approve another 1 million yuan in credit for me," Lu Jiangfu said. "Based on current growth projections, this year's medicinal herb output is expected to increase by about 25% compared to last year, with notable improvements in Epimedium germination, growth, and individual plant vigor." He attributes this change to both meticulous field management and policy adjustments by the forestry and grassland departments. "In the past, forest tending had rigid indicators like canopy density that couldn't be flexibly adjusted to control light penetration. Last year, provincial documents clearly stated that canopy density control indicators after legal forest tending for under-forest economic development can be relaxed," Wang Libo explained.

Benefiting from this policy, the Xinyi farm has implemented tending in its planting areas without significant logging, creating a suitable semi-shaded environment for Epimedium growth. The forest's bounty extends even further. Leveraging reform momentum, native under-forest industries such as Korean pine forests and Asarum heterotropoides are also finding broader growth opportunities. In 2025, the province developed a total of 120,000 mu of specialty economic forests and under-forest economy, including 60,000 mu of each, both showing increases from previous years.

Extending the Industry Chain: Adding Value to Forest Products

After lunch, Ma Qingbo, a villager from Wanjia Village, Yanghe Town, Xiuyan County, headed up the mountain to place last week's tussah silkworm eggs onto the trees. As a major tussah silkworm farmer, his annual income from this activity reaches over 100,000 yuan. Tussah silkworms, raised on oak trees, represent a distinctly local agricultural practice within the forestry economy.

Xiuyan County is known as the "No. 1 Tussah Silkworm County" in China, with over 60,000 people engaged in the industry and an annual direct output value of approximately 1.2 billion yuan from cocoons. After harvesting, these cocoons enter the processing chain, whether for silk reeling, medicinal use, or food, multiplying their value.

"While farmers raise tussah silkworms, they also manage the oak forests. If the trees grow too tall, they need to be cut back within policy limits," explained Zhang Chengfu, Chief Engineer at the Xiuyan County Forestry Center. The county promotes on-site utilization of oak branches, with most pruned materials processed into mushroom cultivation sticks, creating a "tussah silkworm-mushroom" circular farming model. At the Shuangying Edible Mushroom Planting Cooperative, a ten-minute drive from Ma Qingbo's home, one can see the mushroom sticks made from oak branches: cylindrical, about 30 centimeters long and 10 centimeters in diameter, each consuming 4 jin of oak branches.

Edible mushrooms are a vital pillar of Xiuyan's agricultural and forestry economy. "The shiitake mushrooms produced here have a crisp, springy texture that's very popular in the market. They also fill the summer supply gap, selling for over ten yuan per kilogram," said Liu Wei, the cooperative's head. The transformation of oak branches into mushroom sticks exemplifies value reutilization.

In Huanren, under-forest ginseng is being processed through slicing and other techniques, converting the forest's gifts into tangible income. "The wild ginseng and under-forest ginseng used in over 2,000 offline stores of Beijing Tongrentang all come from Huanren," said Wang Na, Quality Director at Beijing Tongrentang Health Pharmaceutical (Liaoning) Co., Ltd. Her statement underscores how, through forestry industry development, the ginseng of eastern Liaoning's mountains has become deeply integrated into the supply chain of a nationally renowned brand.

Explaining why the company chose Huanren, Wang Na cited the region's irreplaceable ecological environment, national geographical indication resources, mature cultivation communities, and comprehensive industrial infrastructure. It's recognized as a core production area for under-forest ginseng, allowing for strict quality control from the source. Using Huanren under-forest ginseng as raw material, the company's independently developed freeze-dried powder holds 100% of the domestic market share, effectively promoting the sustainable development of the industry.

Family forests are one of the key operating entities supported by the province's moderate-scale forestry operation strategy. Liaoning encourages achieving "small mountains into big mountains" through exchange, transfer, or acquisition of collective forest land contracting and management rights. In Hongshi Village, Yushu Township, Xinbin County, the Yuhong Family Forest Farm is cultivating red pine mushrooms and Ganoderma lucidum beneath the trees. "With the new round of forest reform opportunities, we've added 300 mu of red pine mushroom and 100 mu of Ganoderma lucidum planting bases, driving surrounding villagers to plant together," said farm owner Tu Kuijuan. "We've also extended the industry chain by processing fresh mushrooms into the now-popular crispy pine mushroom snacks for multi-channel sales. We absorb over 3,000 local villagers for nearby employment annually, achieving an output value of 18 million yuan."

Most of this forest land was transferred from fellow villagers. Wang Guizhong is both a farm worker and a beneficiary of the land transfer. "In the past, the land was idle. Now I can earn transfer rent and also make money close to home. I feel quite secure," he said.

Diversified Transformation: From 'Selling Timber' to 'Selling Scenery'

Although autumn has arrived, much of Liaoning remains hot. Yet, stepping into Maple Valley Forest Park in Huanren County, visitors are greeted by mountain breezes carrying spring moisture and the scent of vegetation, prompting the inevitable question: "Is there air conditioning here?" The answer is no, but the park's head, Wang Guochun, offers an even more surprising fact: "The temperature inside the park is 10 degrees Celsius lower than outside."

Moreover, the park's forest coverage rate reaches 98.75%, with negative oxygen ion levels as high as 30,000 per cubic centimeter, more than a hundred times higher than urban levels. This exceptional environment attracts 200,000 tourists annually, generating an average income of 10 million yuan per year. The park has also been recognized as a "China Forest Oxygen Bar" and a "National AAAA Tourist Attraction." During interviews, sightseeing buses were seen carrying tourists toward the mountaintop.

Just over a decade ago, however, this area was the poorest state-owned forest farm in Huanren County. "In the past, the forest farm relied mainly on logging for income, but that path eventually became unsustainable," Wang Guochun explained. In 2011, with local government approval, all eight forest farms in the county jointly invested and took equity stakes to develop a forest tourism attraction based on the mountain forest resources and maple foliage of Heping Forest Farm. Today, it features over 50 scenic spots, including Nine-Layered Waterfall and Red Rhyme Plank Road.

The change was immediate. "When the park opened in 2013, my monthly salary was over 4,000 yuan, and the work was less strenuous. I no longer had to spend every day in the mountains," recalled Zhang Chunyou, a veteran worker at Heping Forest Farm. The transformation from "selling timber" to "selling scenery," from "cutting trees" to "viewing trees," is a vivid example of the province's exploration of ecological value conversion.

"With timber in the canopy, economy under the forest, and scenery in between, this three-dimensional development model is the direction our province's forestry industry is pursuing," Wang Libo said. "Liaoning's state-owned forest farms are rich in resources; we can't let people sit on 'golden rice bowls' and still go hungry. The goal of reform is to turn resources into assets, assets into capital, and capital into funds, ensuring everyone truly benefits."

The reforms implemented last year further call for exploring classified and differentiated incentive mechanisms for operational income distribution in state-owned forest farms. They also allow for the legal use of under-forest resources, forest gaps, and forest edges of public welfare forests to moderately develop green wealth-generating industries such as the under-forest economy, eco-cultural tourism, forest health and wellness, and nature education.

In developing cultural tourism, forests serve not only as scenery but also as carriers of knowledge and venues for experience. At the Wild Ginseng Museum and Fangshan Culture Museum created by Liaoning Senzhongtang Health Industry Co., Ltd., the mountain economy transforms into a cultural experience that is both educational and perceptible. Leveraging the advantages of the core production area in "China's Ginseng Hometown" Huanren, the company delves into the intangible cultural heritage and regional cultural heritage behind ginseng, elevating under-forest ginseng beyond simple consumption to become a cultural medium for visits and study tours.

Inside the Wild Ginseng Museum, precious ginseng artifacts fill the space. Through on-site graphics and multimedia displays, visitors can directly witness the complete growth process of ginseng from a single seed. The Fangshan Culture Museum uses realistic scenes combined with sound and light effects to vividly recreate the ancient ginseng-hunting customs. After the tour, visitors can also sample ginseng tea and enjoy specialty ginseng dishes.

"Creating distinctive ginseng museums is about activating industrial value through cultural value. We are committed to integrating ginseng culture into daily life and fully unleashing the development potential of under-forest ginseng," said Liu Houkun, the company's chairman. Since its establishment, the museum has received over 3 million Chinese and foreign visitors.

Reform is generating new vitality. The exploration of forest tenure systems has awakened dormant forest land, fostering a harmonious coexistence of ecological protection, industrial development, and increased farmer income. The mountains may remain silent, but the new shoots emerging in the forest are the clearest answer.

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