Will rice farmers continue to grow rice after a sharp reduction in the purchase price in 2018?

The minimum purchase price of rice has been lowered in 2018, but the income of rice farmers has not decreased. It is true that the minimum purchase price for rice has been lowered since 2018, but we still have to look at it correctly. First of all, the current grain prices in China are indeed relatively high, which is a prelude to international standards. Secondly, low grain prices are more conducive to marketization. Third, the reduction of grain prices does not mean a reduction in farmers' income. Let's talk about it next.

The price of grain in China is on the high side

A meeting of the Ministry of Agriculture in December 2017 said that it is necessary to implement the policy of separation of price and compensation for China's grain prices, that is, to promote China's grain prices to be in line with the international market. The current situation is that China's agricultural products simply do not have any advantage in the world, whether wheat, corn or soybeans are much higher than the international food prices, which is also a major reason for the influx of Russian wheat and American soybeans into China.

Low grain prices are more conducive to marketization.

The reason for saying this is not blind. First of all, the high grain prices in the current market directly force grain processing enterprises to purchase imported food from abroad, which leads to the lack of interest in domestic grain. This situation can be described as a true portrayal of China's current soybean. Now it is extremely contradictory that, on the one hand, China buys a large number of imported GM soybeans, but does not use domestic non-GM soybeans. In 2017, domestic soybean output is only 14 million tons, while imported soybeans are as high as 95.53 million tons, so no one is interested in domestic soybeans. Domestic soybean farmers still said that they could not sell their soybeans. If it goes on like this, it can only be injured domestic farmers, it can also be said that the current market strategy for domestic farmers has no real benefits, seemingly superficial benefits, in fact, there is a deep crisis behind! For farmers, we really have to take a long-term view!

The protective price of rice is reduced, but the income of farmers is not reduced.

In April this year, there was news in China that in order to promote China's rice acquisition reform and ensure the interests of farmers, a subsidy program will be implemented in China's main rice producing areas this year, specifically formulated by various localities. At that time, the relevant subsidy funds will be specially issued by the central finance!

It can be said that this strategy is aimed at the reduction of the market price of rice this year, and it also confirms the fact that China's grain is gradually moving towards marketization in the future! With the continuous decline in grain prices, the processing power of grain processors has been mobilized, but protecting the interests of farmers is a problem in front of us. Only to increase subsidies, mention the enthusiasm of farmers to grow grain, and this strategy is not unique to our country, even if agriculture is developed such as the United States, also take relevant subsidies to agriculture.

Therefore, for farmers who intend to grow rice this year, I believe they have made the choice to strive for, and under the background of national policy support, the interests of farmers will certainly be protected.

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