The pilot project of agricultural product price reform may be expanded into the key plan of the No. 1 document under study.

The pilot project for the reform of the agricultural product price system is expected to be further expanded. A reporter from the Economic Information Daily recently learned from a number of authoritative sources that in addition to the continuation of the existing experimental varieties and regions, the relevant departments are studying the target price subsidy for sugar in Guangxi, which, if demonstrated, will be included in the No. 1 document of the CPC Central Committee next year. In addition, the reform of the land system will be further deepened, including heavyweight policies such as collective land entry into the market, which may be launched next year.

According to the No. 1 document of the Central Committee this year, the pilot projects of target prices of cotton and soybeans have been carried out successively in Xinjiang, Northeast China and Inner Mongolia. According to relevant sources, the pilot reform of the price formation mechanism of agricultural products is only the beginning of this year, and the relevant departments are actively studying the price reform plan for 2015. Because the existing pilot agricultural products will not have a basic understanding of the test until at least the spring of 2015, and it is very difficult to form relatively perfect policies and methods without two cycles of price reform, so the preliminary idea is to continue to carry out the pilot project of target price reform of cotton in Xinjiang, Northeast China and Inner Mongolia in 2015, so as to make the overall plan of future price reform more perfect, more scientific, and more operable.

As to whether the variety and scope of the pilot price reform of agricultural products that the market was concerned about before will increase, a reporter from the Economic Information Daily learned that because the impact on CPI is too obvious, it is now basically determined whether to continue to implement the lowest price purchase policy for wheat, rice, and corn will eventually change, depending on the situation of this year's soybean target price pilot. "it has been widely rumored that it is not accurate to abolish the temporary reserve policy during the 13th five-year Plan period, which must be a major decision that can only be made after a certain degree of experience has been accumulated in the pilot project of price reform." In addition, as the situation of sugar is very similar to that of cotton, the relevant departments are now studying the pilot project of target price subsidies in Guangxi, a person familiar with the matter said. It is said that the above-mentioned reform plans for the price formation mechanism of agricultural products will become an important part of the No. 1 document of the Central Committee in 2015.

The pilot project of target price reform proposed for the first time by the Central Committee document this year is an important measure to improve the price formation mechanism of China's agricultural products. The so-called target price system means that the government sets the target price of agricultural products, subsidizes low-income consumers when the actual market price is higher than the target price, and subsidizes producers according to the price difference when the market price is lower than the target price.

The formation of the target price is completely determined by the supply relationship of the market. This not only plays a decisive role in the allocation of resources, but also defines the responsibility of the government for the development of agriculture and rural areas.

Chen Xiwen, deputy head of the Central Rural work leading Group and director of the office, said in an interview with the Economic Information Daily that the pilot project of the target price was carried out in accordance with the requirements of the decision of the third Plenary session of the 18th CPC Central Committee. let the relationship between supply and demand be reflected in the market so as to form the price of products, which is also the general mechanism of price formation under the condition of market economy.

It is understood that at present, the price formation of the vast majority of agricultural products in China follows the market mechanism, and the government mainly intervenes in the prices of six important varieties, namely, wheat, rice, corn, soybeans, cotton and sugar. In 2004, while fully liberalizing the grain market, the central government put forward the main means of price regulation. At first, it implemented the minimum purchase price system for wheat and rice, and then gradually expanded four varieties and set the "temporary purchase and storage price". The adjustment of the target price pilot project mainly has two meanings: one is to let the market play a decisive role in the allocation of resources, while the government should also play a good role; the other is to solve some actual problems at present. These problems in addition to the overall income of land is still low, farmers' enthusiasm for growing grain is not high, but also from 2010, the import of some agricultural products is relatively large, and even showing the trend of net import. The import prices of some agricultural products are obviously lower than those in China, resulting in a price upside down, so operators and processors are more willing to choose imported agricultural products. Due to the increase in import volume which is not entirely caused by the relationship between supply and demand, domestic agricultural products are more difficult to sell after they are collected, resulting in a backlog of inventory and a huge impact on the market.

Chen Xiwen believes that at present, the most important issue facing the price reform of agricultural products is the mechanism. Since it is a socialist market economy, it is more necessary to give full play to the role of the market mechanism. However, grain is related to the national economy and the people's livelihood, and the government cannot ignore it completely. "in the past, the lowest price and temporary storage were supported by the government, but after the implementation of the target price, to a certain extent, this bottom is gone."

As to whether a pilot project on the target price of sugar will be carried out in Guangxi next year, Chen Xiwen said that the problem of inverted sugar prices in Guangxi is very urgent, and there may be a large-scale production reduction next year, and measures need to be taken to protect the interests of farmers and national food security. However, because the current price reversal of sugar is too serious, it is difficult to say whether the target price adjustment will be effective or not, and the relevant departments are studying and discussing it.

Li Guoxiang, a researcher at the Institute of Rural Development of the Chinese Academy of Social Sciences, said that at present, there are fewer and fewer countries in the world that intervene in the pricing of agricultural products, and how to change the pricing of agricultural products to evaluate prices and give full play to the public welfare role of the government, helping farmers to improve their income is a major challenge for the Chinese government in the future.

In addition to the reform of the price formation mechanism of agricultural products, a number of market participants predict that a series of heavyweight policies will be launched next year around the reform of the rural land system. It is understood that at present, relevant departments are studying policies such as the reform of the land expropriation system, the entry of collective land into the market, and the mortgage transfer of farmers' housing property rights.