It is urgent to perfect the Collection and Storage system how to form the Price of Agricultural products in the Future

On the 11th, the executive meeting of the State Council again proposed to reform the grain price formation and storage mechanism. Just a few days ago, the full text of the "proposal of the CPC Central Committee on the formulation of the 13th five-year Plan for National Economic and Social Development" (hereinafter referred to as "the proposal") was published, which also mentioned "reforming the price formation mechanism of agricultural products and improving the collection and storage system of grain and other important agricultural products."

The meeting said that the continuous increase in grain production and another bumper harvest this year have strongly supported economic and social development and the improvement of people's livelihood, but there are also problems such as a substantial increase in stocks and falling prices. It is necessary to strictly investigate "white slips" and depress grades and prices, so as to prevent "difficulties in selling grain." We will improve the subsidy policy for corn and soybeans, and continue to implement the minimum purchase price policy for wheat, rice and other food rations next year.

Last month, several opinions of the CPC Central Committee and the State Council on promoting the reform of the price mechanism were issued, requiring the field of agricultural products to "improve the price formation mechanism" and "pay attention to the role of the market in forming prices, and the prices of agricultural products are mainly determined by the market."

At the beginning of this year, the National Development and Reform Commission issued a notice saying that the purchase price of tobacco leaves should be liberalized. As the purchase price of tobacco is the last variety to be set by the government in the field of agricultural products, this means that the national price reform of agricultural products began in 1978. After 38 years, the government pricing of agricultural products in China has completely withdrawn from the historical stage.

Temporary collection and storage system began in 2008, corn, soybeans, rapeseed, sugar and so on have also joined this queue. In 2011, a temporary cotton collection and storage system was established. It has been "temporary" for eight years so far. Only since the beginning of this year, corn harvest and storage prices have been lowered in September, until the subsequent document called for "reforming and improving the corn collection and storage system." corn, which is still included in grain statistics, has stood in the tuyere of the temporary storage policy adjustment queue.

The collection and storage system has distorted the price formation mechanism of agricultural products, and the role of the market has not been brought into play effectively, which has been criticized for many years. Since the implementation of the price support policy with the minimum purchase price and the temporary purchase and storage policy as the core for many years, all parties in the market have become more and more dependent on the path of the policy. Since the start of the temporary purchase and storage, the purchase and storage price has shown a steady upward trend, the expectation of "only rising but not falling" has increased, and the grain market has shown a "policy" trend. The prices of agricultural products at home and abroad are upside down, and the import pressure is increasing day by day. The financial burden brought about by the implementation of this policy is increasing, which makes the collection and storage policy face adjustment.

Dr. Wang Yuxin of Guilin Institute of Aerospace Technology told China Business Daily that as far as the collection and storage system is concerned, the "proposal" makes it clear that "important agricultural products" do not refer to all agricultural products. So which can be classified as "important agricultural products"? At least from the current situation, rice and wheat as staple grains that continue to implement and improve the minimum purchase price policy can be regarded as "important agricultural products". The central government will need to give more prominence to the principle of being close to the market and ensuring farmers' reasonable income to determine the purchase and storage price. This can not only reduce the cost of reserves, but also improve the efficiency of reserves.

The "proposal" also proposes to train a new type of professional farmers. As early as 2012, "Central Committee No. 1" document proposed to "vigorously cultivate a new type of professional farmers." Han Changfu, minister of agriculture, has said that it is a historic task to change the title of "farmer" from an identity title to a professional title.

Wang Yuxin believes that at present and for a period of time in the future, it is necessary to formulate special plans and practical policies to attract more young people to work in agriculture and create a new team of high-quality agricultural producers and operators. In particular, it is necessary to help migrant workers with skills and management ability to return home to set up family farms, lead farmers' cooperatives, and establish agricultural products processing and marketing enterprises and agricultural socialized service organizations. This has far-reaching significance for promoting agricultural modernization and even economic and social development.