Why is China's Agriculture not competitive?

Recently, China's bumper grain harvest has become the focus of media attention. As the saying goes, "you can't get rid of it, you can't save it." For a country with a large agricultural population, a bumper harvest should be said to be a good thing, especially since many of us are still shrouded in the memory of three years of hellish hunger. However, the current food situation is really causing risks, in modern society, how to understand agriculture, in fact, most people's thinking can not keep up with the development of the world.

Current grain situation

The surplus of corn stored in China has reached 150 million tons, and China's corn production in the new season is expected to reach 219.7 million tons, with policy wheat stocks of about 40 million tons, while China's grain imports exceeded 100m tons for the first time in 2014.

Under such a grain situation, grain prices have naturally fallen sharply. The price of corn purchased by the government has dropped for the first time in 11 years, and the price of corn has dropped by more than 20%. Growing grain is obviously at a loss, and all enterprises in the grain industry chain will be destroyed. The author has written articles on this matter many times.

With regard to this situation, Chen Xiwen, deputy head of the Central Rural work leading Group and director of the office, believes that the main reason for this problem is that domestic grain prices are not competitive, and a deeper reason is that China's agricultural structure is unreasonable.

The root cause given by Director Chen is professional, but we can think with common sense.

Now everyone is a child, and there are five or six adults around to take care of the child, but now people have made a lot of progress in the concept of educating children. For example, in my community, there are many scenes in which adults are surrounded by a child. The child is learning to walk. When the child falls, the old man wants to help, and the wife next to him stops her mother-in-law: "Mom, leave him alone and let him get up by himself." So I saw the child slowly get up crying, and then continued to walk, surrounded by applause and a smile on the child's face.

Agriculture that cannot walk on its own

China's agriculture is supported by "old people". After decades of reform and opening up, China has not learned to walk on its own, and China's agriculture has not grown up. This is the sorrow of Chinese farmers.

There are several places in Chinese agriculture that are controlled stubbornly: first, the land is collective, but in fact it is state-owned, not the peasants themselves, so some people say that Chinese peasants are not as good as serfs, which is rather ugly, but is telling the truth. People are born with basic property rights, and Chinese farmers have no property rights. With your own land, you can do financial leverage, such as mortgage credit, which is the most basic logic of agricultural and economic development, and this is how world financial history grew up, and it is also a basic condition for one's life and growth. The Chinese farmer has no land, he cannot mortgage financing, so he can only sell coolies on the leased land.

Second, there is no freedom of movement, when the houses in the city are cheap, farmers cannot go to the city to buy houses. Now the house has risen to the sky, allowing farmers to go to the city, not only can not afford to buy a house, social security and school and other problems are still full of discrimination.

Third, with regard to grain, the government takes good care of farmers, such as the purchase of supporting the market, the purpose of which is not to allow grain prices to be too low and to encourage farmers to grow grain, otherwise they will abandon their crops. But this policy is not a long-term solution, ah, your inventory is limited, your financial funds are limited, and the grain market is in line with international standards. If you drag grain prices to the sky, there will always be grain to fill in the blanks, that is, a large number of imports.

Introduce capital to develop agriculture

The objective situation is indeed that China's agriculture is not competitive, and the grain produced by large farms in the United States is at the level of several counties in China. But this is not the way to protect. With more than 30 years of experience in reform and opening up, all the industries protected are weak, and those that have been liberalized are powerful, such as home appliances, such as agriculture. In order to develop China's agriculture, we must introduce capital, which is all urban, and only with capital can we produce sustainable and competitive agricultural commodities. When you see the capital in the city to build the villa, you don't think that there are times when the villa can not be sold in excess, agricultural products may become the object of capital investment in the city, this is the invisible hand. Capital is smarter than anyone else, at least smarter than the researchers and decision makers you and I sit in the office.

If China's agriculture does not use common sense thinking, market thinking, modern thinking, international thinking, traditional thinking, regulatory thinking, parental thinking and elite thinking, China's agriculture will cause great social malpractices and risks.