MySheen

The overall design of corn marketization leads the reform of grain price.

Published: 2024-12-22 Author: mysheen
Last Updated: 2024/12/22, In recent days, policies on corn have been introduced one after another to reduce the acreage of corn, the temporary purchase price of corn, the safe digestion of existing stocks, and the separation of prices and subsidies. The price reform of this agricultural product, which has the most serious contradiction between production, supply and marketing, has become the government and the market.

Reduce the planting area of corn, reduce the temporary purchase price of corn, digest the existing inventory safely, and separate the price from the subsidy. In recent days, policies on corn have been introduced one after another.

The price reform of this agricultural product, which has the most serious contradiction between production, supply and marketing, has become the top priority of the government and the market. According to the analysis of market participants, this will also become an important breakthrough in the reform of grain prices and the collection and storage system. The price reform of agricultural products is the premise of agricultural marketization. Only when the prices of agricultural products achieve marketization, can we really straighten out the relationship between production, supply and marketing.

The proposal of the CPC Central Committee on the formulation of the 13th five-year Plan for National Economic and Social Development proposes to reform the price formation mechanism of agricultural products and improve the collection and storage system of grain and other important agricultural products. In fact, the previous target price reform of cotton and soybeans and the reduction of corn temporary storage and purchase prices have been useful attempts in this regard.

After the introduction of the planning proposal, the Ministry of Agriculture immediately issued the "guidance on Maize structure Adjustment in the" sickle bend "area, proposing to strive to reduce the rice planting area in non-dominant producing areas by more than 50 million mu by 2020 through scientific construction in accordance with local conditions.

By promoting the reform of corn price policy step by step and making market adjustment become the main means of corn structure adjustment, it is the information revealed in the seminar on corn structure adjustment policies and measures of the Development and Reform Commission.

Greatly reduce the government's direct participation in the collection, storage, transportation and auction of the corn market, restore the vitality of the corn circulation market, increase subsidies to corn producing areas, change grain to feed in non-dominant producing areas, appropriate compensation to fallow farmers and other measures to promote planting structure adjustment delineate the future of the industry from the point of view of curing both the symptoms and the root causes.

The executive meeting of the State Council on the 11th determined measures to stabilize grain production and increase grain income, and especially proposed to safely digest existing stocks and transfer qualified temporary storage corn into national one-time reserves, triggering a hot market debate. The market interpretation is to abolish the concept of temporary storage and pro-price auction. After the temporary storage is transformed into a state reserve, the state can flexibly grasp the time for corn to be released from the warehouse and sell and rotate according to market demand and market price.

Finance Minister Lou Jiwei even raised the grain price reform to a new height. In his recent speech at Tsinghua University, he specifically mentioned the serious problems in the corn industry chain, believing that liberalizing prices and allowing the market to allocate resources is actually the market allocation of labor and land resources. He stressed that the release of agricultural population is the first important potential factor for China to cross the middle-income trap, while agricultural reform and improving agricultural production efficiency are the key to releasing agricultural population.

Chen Xiwen, deputy head of the Central Rural work leading Group, said after the state lowered the corn temporary storage purchase price this year that the next step is to move forward, the principle is to separate the price from the subsidy, and the price is mainly formed by the market. After separation, the farmers sell grain at the market price, and the operators receive the grain at the market price, which can activate the market.

All of the above, the market gave a positive reaction. Li Zhengqiang, chairman of the Dalian Commodity Exchange, said in Guangzhou on the 12th that the exchange will cooperate with the state's policy of 'separation of price and compensation' to promote and improve the grain price formation mechanism. "

Hu Xiaodong, senior business manager of Xiamen International Trade Logistics Co., Ltd., who has been in the front line of grain circulation, believes that after the planting structure is reasonably adjusted, farmers' income will increase; government policy participation in the market will decrease, and market activity will increase; as a result, the market will increase the circulation of 200 million tons of goods, which will benefit logistics enterprises such as land, sea and railway transportation; corn processing enterprises will be like a fish in water. Price return to the market is conducive to the linkage of domestic and foreign markets, investors will analyze and predict the market according to market rules, corn futures will become the largest variety of transactions and positions, and starch futures in the same industrial chain will also be active.

In fact, the "planning proposal" has formulated a whole set of agricultural reform directions, "developing various forms of moderate scale operation" and "promoting grain economy and feeding as a whole." "the integration of planting and cultivation", "promoting the orderly circulation of land management rights in accordance with the law, constructing a policy system for cultivating new types of agricultural operators,"training new professional farmers", "deepening rural financial reform, improving the agricultural insurance system," and so on, these and the reform of the price formation mechanism of agricultural products are not isolated from each other, but complement and promote each other. With scale operation, the state subsidy will be more targeted and efficient, and to a certain extent, it can reduce or even avoid the statistical, fiscal, taxation, financial and other difficulties arising from the pilot process of target price subsidies for soybeans and cotton.

This year is the first year of the reduction of corn temporary storage prices. the recent drop in corn prices may reduce the cost of renting land for large-scale planting to a certain extent, and new operators in advantageous producing areas can take this opportunity to appropriately expand the planting scale. in order to reduce production costs and obtain economies of scale, it can also get greater development when the state increases subsidies to advantageous producing areas.

 
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