MySheen

The influence of "cheap grain hurts farmers" should not be underestimated.

Published: 2024-09-16 Author: mysheen
Last Updated: 2024/09/16, There has been a bumper grain harvest, grain prices have fallen and farmers' incomes have dropped. According to media reports, since the beginning of autumn this year, the prices of corn and wheat in China's main grain producing areas have fallen to varying degrees. Corn prices fell significantly, with farmers' prices falling by more than 20% on average, the highest decline.

There has been a bumper grain harvest, grain prices have fallen and farmers' incomes have dropped. According to media reports, since the beginning of autumn this year, the prices of corn and wheat in China's main grain producing areas have fallen to varying degrees. Corn prices fell significantly, with household prices falling by more than 20 per cent on average, with the highest drop of 30 per cent compared with last year, while wheat also experienced a cliff decline before the National Day. At present, the purchase price of rice is generally stable, but there is also a small decline in some areas compared with previous years.

With a bumper grain harvest, volume and prices have declined in some areas for a short time, which is the law of the market, and there is no need to make a fuss. However, if there is a bumper grain yield and there is a sharp national decline in all staple grains, it cannot simply be regarded as a market behavior. Farmers can not have a bumper harvest in growing grain, which is bound to seriously dampen the enthusiasm of farmers to grow grain. In particular, for a long time, the income of migrant workers is far greater than that of growing grain, and the farmers who really know how to grow grain have become "green and green", and the old and weak women in many places have become the "main force" of growing grain. Although the state and local governments have repeatedly increased grain subsidies and issued protection policies for grain purchase, the actual income of growing grain is not only difficult to be directly proportional to the payment, but is still far from the income of migrant workers, and grain prices have fallen sharply this autumn. Farmers' enthusiasm for growing grain is bound to be greatly affected.

On the surface, the high input and high subsidy of growing grain in our country have increased the income of farmers, but in fact, including government subsidies, a large part of it has been transformed into the input of growing grain. Experts have estimated that the net profit per mu of wheat last year was 87 yuan, and the grain price of high-yield wheat has fallen sharply this year. Although the yield of one mu of wheat is higher than that of last year, the net income of one mu of wheat is only 33 yuan, and the income of one mu of land is 54 yuan less. even according to the net income of one mu of wheat last year, growing grain is obviously one of the least profitable industries. If you encounter some natural disasters, it is even more likely to lose money on growing grain.

On the other hand, apart from the high-yield factors, the main reason for the overall drop in grain prices this year is that the price of imported grain is lower than that at home, causing many grain processing enterprises to choose imports rather than domestic purchases. The "upside-down link" between imports and domestic grain prices is enough to show the low cost of growing grain abroad. The income of farmers growing grain caused by a variety of factors is decreasing year by year, which is bound to force more farmers to give up growing grain and choose another line.

China has had the iron law of "instability without agriculture" since ancient times. The price of imported grain is lower than that at home, but this low-order is based on the market behavior of sufficient domestic grain, which is not sustainable. Once domestic grain production is greatly reduced and the price initiative is transferred, imported grain prices are bound to rise sharply or even appear price monopoly. If we do not take corresponding measures to increase farmers' production and income, the transfer of farmers will exceed the limit, which will lead to food security problems.

In the face of the overall decline in grain prices and the fact that the price of imported grain is lower than that at home, governments at all levels should act quickly to further speed up land circulation and improve supporting policies and measures, promote the transfer of the household contract responsibility system of land to large-scale agricultural cultivation, and transfer land to family farms and large grain growers, which will not only help farmers increase their income, reduce the cost of growing grain, but also realize the professionalization of grain farmers. This is a feasible road with Chinese characteristics and in line with national conditions, which will help to ensure China's food security.

 
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