The per capita net income of farmers rose more than six percent in 2009 from a year ago, Xinhua news agency said, citing a statement issued by the central government's annual conference on rural policies.

The increase was partly driven by a recovery in demand for migrant workers, the report said, as factories and construction companies started hiring again in response to improved economic conditions.

Nearly 20 million migrant workers lost their jobs at the start of the year as factories closed or slashed production in response to plummeting export orders from key markets in Europe and the United States.

But the government has said that 96 percent of those people had found new jobs in the cities by September.

China has about 225 million migrant workers, according to official figures.

Higher incomes in rural areas created "important conditions" for boosting domestic consumption, Xinhua said, as Beijing seeks ways to reduce its reliance on foreign exports to drive economic growth.

In a sign of the growing importance of rural consumption to China's overall recovery, the government said earlier this month that it would continue to subsidise the cost of home appliances for farmers next year.

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