China's central government will offer a total of 14.9 billion yuan ($2.42 billion) this year to farmers and local communities as a compensation for preserving forests crucial to environment and biological diversity.

The Ministry of Finance said Wednesday that the money will be paid through a fund established in 2004 for the compensation of farmers and communities in exchange for the ecological benefits of the forests.

Only forests that have been dubbed as national reserves for public good will qualify in the program.

The subsidy for forests owned by the state was five yuan per mu (666.67 square meters) in 2010, and 10 yuan for private and community-owned forests.

This year, the ministry raised compensation for private and community-owned forests to 15 yuan per mu.

The ministry said the standards of subsidy will be further increased in the future if the financial situation allows.