HEFEI, Jan. 27 (Xinhua) — The birthplace of China’s rural reform, Xiaogang Village in east China’s Anhui Province, distributed dividends to all its residents for the fifth year on Wednesday.

The cumulative dividends of Xiaogang Village have amounted to more than 10 million yuan (about 1.58 million U.S. dollars) over the past five years, thanks to the burgeoning collective economy. More than 4,000 villagers earned 620 yuan in dividends per person this year, a massive leap compared to the 350 yuan five years ago.

“The increase of dividends is indispensable from the reforms,” said Yan Jinchang, a head person of the stock cooperative of the village’s collective economy.

In December 1978, 18 villagers in Xiaogang agreed on a secret pact to break the egalitarian agricultural system. The family land contract responsibility system, which derived from Xiaogang, spurred unprecedented growth in production and profit in rural areas of China.

Following the land-use reforms, Xiaogang Village continued introducing reforms in multiple sectors. These included rural taxes and fees, land rights, and collective assets. Now, every villager is a shareholder in the village’s stock cooperative.

In 2021, Xiaogang Village strived to promote rural vitalization by setting up industry funds and village banks, optimizing agriculture infrastructure, and developing food-processing enterprises and village tourism.

A signing ceremony for an agricultural science and technology park, involving an investment of about 600 million yuan, was held in Xiaogang Village on Wednesday.

“We will build a smart agriculture factory in Xiaogang Village and use artificial intelligence technology to maintain a stable temperature and humidity inside. It will realize continuous planting throughout the year,” said Qiu Shaohua, chairman of Chunhe (Guangdong) Modern Agriculture Technology Co., Ltd.

In 2021, Xiaogang Village’s collective economic income reached a new high of 12.2 million yuan, with the per capita disposable income reaching 30,500 yuan.

“The joyful dividends demonstrate that we are living a better life now,” said Yan.