The purchase prices of China's three staple grains have fallen across the board, and farmers' incomes are likely to be damaged by hundreds of billions.

With a bumper grain harvest, grain prices have plummeted, and farmers' incomes have plummeted. Since the beginning of autumn this year, the values of corn and wheat in the main grain producing areas have declined 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.

The across-the-board decline of the three staple grains is rare in previous years. Low international grain prices and a backlog of domestic stocks are seen as the main reasons for the current round of grain price decline.

Ma Wenfeng, an agricultural analyst at Iger, said in an interview with the Huaxia Times that special attention should be paid to the impact of the sharp drop in food prices on the income of hundreds of millions of farmers this year. Negative income growth at the level of 100 billion will affect the consumer market and is expected to affect 1% GDP growth.

The three staple grains fell across the board.

After the National Day, corn was harvested one after another and went into the acquisition link, but farmers in many places found that the purchase price of corn this year was lower than 20% and 30% in previous years.

A reporter from the Huaxia Times conducted a random sampling survey on a number of major grain producing areas, among which the price of wet corn harvested in Changchun, Jilin Province was 6 hair per jin, nearly 3 hair lower than in previous years; in Changgou Town, Jining, Shandong Province, the price of cool sun-dried corn (meeting the purchase standard) was more than 1 yuan and 20 cents last year, but only 80 cents this year, down more than 20 cents. Farmers in Handan, Hebei Province told reporters that the local corn purchase price has been maintained at about 80 cents, a drop of more than 20% compared with previous years.

In the Beidahuang area this year, grain has had a bumper harvest, but grain prices have also dampened the enthusiasm of farmers. According to the official report of Qitaihe City, most of the corn is directly listed after the corn harvest. The purchase price of 30% moisture corn cobs is 0.35 yuan per jin and corn kernels is 0.65 yuan per jin, down 0.1 yuan per jin from 0.75 yuan per jin in the same period in 2014, a drop of 13.3 percent.

Zhang Aiqin, a farmer from Sunji Village, Zhouzhai Town, Dangshan County, Anhui Province, told the Huaxia Times that the price of cool-dried corn was 1.07 yuan per jin in the same period last year and 0.78 yuan per jin this year, and there were very few buyers, mainly sold to traders. "my family sold 5243 yuan on 7 mu of land last year, and the price of corn affected by insect pests this year is even lower. This year, the total income is 3588 yuan, and the income is 1655 yuan less. I will not plant and cover all the land next year."

In addition to corn, the price of wheat also fell sharply. During this year's National Day holiday, wheat prices fell off a cliff, which has not been seen for many years. According to the China Grain Information Network, the purchase price of second-class wheat by flour mills in most regions quickly fell from 1.15-1.20 yuan per jin before the holiday to 1.05-1.10 yuan per jin, a drop of about 0.1 yuan per jin. This confused most people involved in the wheat trade and plunged the market into a serious atmosphere of panic.

Generally speaking, after the purchase of the national reserve market ends on September 30, there will be a wave of decline in wheat prices, so that flour mills can have a pick-up process, but the decline in wheat prices this year has been rare.

According to people in the wheat industry, the sharp drop was caused by Shandong, and the local market acquisition ended, but there are still a large number of wheat convoys in local grain depots that cannot enter the warehouse this year, especially in Liaocheng and Texas, where wheat can only be sent to flour mills, while flour mills cannot digest and directly depress prices.

"after Hebei and other flour giants learned of the rapid decline in wheat purchase prices in Liaocheng and Texas, they all made a rapid response and began to reduce wheat purchase prices. the prices of these flour enterprises are often the weather vane of the market and eventually transmitted to the whole country." The above-mentioned person said.

Not only wheat and corn, but also rice is not doing well this year. Data from many places show that rice prices are stable and falling. Yang Zhicai, a farmer in Dangtu County, Anhui Province, told reporters that the price of rice this year has dropped by about 10 cents compared with previous years, and his income of several hundred mu of land has been reduced by tens of thousands of yuan. The reporter conducted a sample survey in Heilongjiang and found that the current price of rice is basically the same as that of previous years.

Ma Wenfeng said that the biggest price declines this year are corn and wheat, of which corn is mainly feed, while rice bran as feed will also be affected, mainly in the feed link to the price, while inventory overstocking also has an impact. "but corn alone has a big impact."