Non-rations should be gradually liberalized and moderately reduced subsidies and collection and storage

A few days ago, the Central Economic work Conference was held, which requires an accurate grasp of the new normal of economic development. In deploying the main tasks of next year's economic work, it is required to speed up the transformation of the mode of agricultural development. In the context of the promotion of new urbanization, the development of agricultural modernization has become a key link.

Just as China's economy has entered a new normal, in the process of the development of modern agriculture, the "small-scale peasant economy" has gradually weakened and begun to show new characteristics. With the circulation of land, the scale has become a reality, and the income of farmers has also increased. In addition, the fact that the prices of some agricultural products [2.58% of the funds reported] are higher than those of foreign countries has also forced the large-scale transformation of agriculture and reduced costs.

In an exclusive interview with China Business Daily on December 14, Liu Yonghao, chairman of New Hope [0.47% Capital Research Daily], said that there are four points in the new normal in agriculture, and one of the bottlenecks of modern agriculture is the lack of scale. Under the pressure of the market, the transformation of agricultural development is now under way and will be accelerated.

Liu Yonghao

Four New Normals in Agriculture

China Business Daily: the just-concluded Central Economic work Conference mentioned that the economy has entered a new normal. In the field of agriculture, what is the performance of the new normal? How to treat the transformation of agricultural development mode.

Liu Yonghao: at present, the new normal of agriculture has four points: first, the problem of the supply of agricultural products has been basically solved, but this is only a basic solution of quantity, and the problems of quality, variety and periodic fluctuations of agricultural products still exist; second, after a large number of farmers have moved to the cities, large-scale planting and breeding in the agricultural field is under way. Third, the income of farmers is now lower than that of urban residents, and this pattern should be improved as soon as possible; fourth, the prices of agricultural products, whether grain or meat, eggs and milk, are far higher than those in the international market.

This is because the scale of agricultural production and the pattern of production system are changing rapidly, and the transformation from traditional agriculture to modern agriculture is also under way. The core is to expand the single household farming area and improve the efficiency through land transfer. In addition, animal husbandry and food processing industry are moving forward towards modernization and scale. These are some of the pressures, opportunities and difficulties faced by agriculture under the new normal.

Daily newspaper: how to view the change of agricultural development mode in the future?

Liu Yonghao: the transformation of agricultural development is now under way and will be accelerated because of the market pressure. This is mainly due to the normality that the annual income of farmers working in cities has reached 30,000 to 40,000. This means that the scale of agricultural cultivation and farming must be expanded, and it is impossible to increase income without expanding income.

However, the improvement of unit price is restricted by the international price of agricultural products, and the ceiling effect is becoming more and more obvious under the pattern of gradual opening of the market. The solution can only rely on scale expansion. Therefore, the development of modern agriculture becomes possible. One of the bottlenecks of modern agriculture is the lack of scale.

The Transformation of Modern Agriculture forced by the Market

Daily newspaper: the industry engaged in by the New Hope Group has a history of thousands of years. "small-scale peasant economy" is the mode of production of this industry, which has been criticized by scholars as "small, scattered and chaotic". How to treat the existence value of small-scale peasant economy?

Liu Yonghao: the small-scale peasant economy is changing to a large-scale economy, which is now going on and is changing very fast. The advantage of small-scale peasant economy is that it can remain relatively stable, and farmers can rely on labor to ensure basic self-sufficiency. However, this is obviously not conducive to the improvement of farmers' income and the development of modern agriculture, and must be reformed.

At first it was policy encouragement, but now it is the backlash of the market. Because of the promotion of urbanization, a large number of farmers go to the cities, which makes it possible for land circulation and large-scale farming. At the same time, it also makes it possible for the large-scale and modern development of animal husbandry and food industry.

In other words, this gradually expanding production has greatly increased farmers' income, thus weakening the small-scale peasant economy. This process is gradual, and there has been a trend of acceleration recently. The state should try its best to support and encourage this transformation, that is, the transformation of modern agriculture.