What if farmers grow corn? what happens to the corn market?
First of all, we make it clear that the current corn planting area is already very large, and the scope of re-expansion is very limited; secondly, even if the corn is expanded in a large area in the future, the benefit will not become better. What's more, at present, the planting area of corn in China is quite stable, and it is still in the era of overcapacity, and there is no demand for continued expansion. Therefore, such expansion will only lead to a decline rather than a rise in the price of corn in China in the future.
For farmers, the richness of food crops, they will not bet all the treasure on corn, but what is certain is that if there is an interest in that direction, they will want to invest in cultivated land in which direction. However, the current economic benefits of corn planting can not drive the majority of Chinese farmers to plant corn. Crops such as peanuts, soybeans, rice and vegetables may be more profitable than corn.
Judging from the corn planting situation in the past five years, the total yield has basically remained stable. Basically, more than 200 million tons. And this number can be said to have exceeded the current domestic demand of our country. For this reason, China has continuously reduced the corn, reduced the corn and increased the soybean planting area. Contrary to the serious oversupply of corn, soybeans in China are seriously in short supply, so it is necessary to reduce the planting area of corn to improve the domestic supply of soybeans in China.
In terms of economic benefits, if the planting area of corn is too high, this is not a good thing. The situation of oversupply has led to continuous destocking in our country. For example, more than 50 million tons of corn has been auctioned continuously this year. Under the main body of such a market economy, the excessive supply of corn also makes it difficult for corn prices to rise, and the economic benefits of farmers can not be guaranteed.
However, it is gratifying that in recent years, with the improvement of the production capacity of China's corn processing industry, China has made great progress in destocking, and it is expected that the net corn output of our country will be negative this year. It is believed that in the future, with the grain structure of our country becoming more and more reasonable, the grain price will return to a normal range that everyone can accept.
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