nibble off the hard bones of agricultural product price reform

This year, the purchase of corn will be adjusted from temporary collection and storage in the past to a new mechanism of "market-oriented acquisition plus subsidies", indicating that China has taken another key step in the price reform of agricultural products. For our country, the road of price reform must be in line with the national conditions of agriculture. Specifically, it is to let the price return to the market and make the market play a decisive role in the allocation of resources by means of price; at the same time, it also ensures food security and effectively protects the interests of farmers. It is necessary to make good use of both the market and the government, overcome all difficulties and get through the price reform of agricultural products.

The price reform of agricultural products that attract people's attention is gradually entering the deep water area. A few days ago, the corn collection and storage system reform briefing jointly convened by the National Development and Reform Commission and other departments made it clear that this year's corn acquisition will be adjusted from temporary collection and storage in the past to a new mechanism of "market-oriented acquisition plus subsidies." So far, following the pilot reform of the separation of cotton and soybean prices in 2014, and the cancellation of temporary collection and storage of rapeseed in 2015, corn, which has the largest yield of grain crops in China, has also embarked on the road of price reform. This means that China has taken another key step in the price reform of agricultural products.

The road to price reform of agricultural products, especially staple agricultural products, such as grain, cotton, oil and sugar, is extraordinary. From the comprehensive price control in the era of planned economy, to the gradual liberalization of "unified purchase and marketing" after reform and opening up, to the parallel of policy-protected acquisition and market-oriented acquisition through policy protection such as minimum purchase price and temporary purchase and storage. China's agricultural products have formed a unique semi-policy and semi-market phenomenon. Due to the growing gap between policy acquisitions and market prices, the pressure of semi-policy and semi-market conditions is not small, and finally evolved into a "policy city". For example, cotton before the target price reform in 2014 and corn in recent years can only be purchased at high prices and piled into warehouses, enterprises use imported products or substitutes, and the market price adjustment function fails.

On the one hand, the "policy city" is difficult to sustain, and on the other hand, the demand of the market to straighten out the price is increasing day by day, and the agricultural product price reform begins under the background of this kind of pressure and initiative. From the point of view of the source of production, although the "policy city" maintains farmers' income to a certain extent, it also promotes farmers to "bury their heads in planting the land without asking about the market", making it difficult for them to become the real main body of the market; from the perspective of the sales market, the "policy city" deviates from the normal track of price formation and does not reflect the real situation between market supply and demand and cost, which will eventually result in the supply of agricultural products "never growing up". From the perspective of the processing link, the "policy city" separates the natural relationship between the processing enterprise and the market, pushes up the enterprise cost, and causes the "chain obstruction" of the agricultural product industry chain. Moreover, the long-term "policy city" also increases the financial burden and increases the risk of exceeding the WTO subsidy rules.

Price reform is imperative, but it does not mean it is easy. In this regard, we have learned a profound historical lesson. Therefore, is it to pursue one step in place, or step by step, the easy before the difficult? Is it a sudden advance by individual soldiers, or overall consideration and comprehensive measures? This is not only a technical issue, but also a core issue related to the purpose and success of the price reform. The good news is that after long-term exploration, we are finding a way of price reform in line with the national conditions of agriculture.

This way is to first clarify the purpose and principle of price reform, that is, to let prices return to the market and enable the market to play a decisive role in the allocation of resources through price means; at the same time, it should also give full play to the role of the government in ensuring food security and safeguarding the interests of farmers. Taking safeguarding farmers' interests as the starting point and foothold of price reform and even rural reform is not only the key to the success of price reform, but also the key to the success of rural reform.

Following this top-level design, in the reform steps, we adopt the pilot first approach, and then push it out in an all-round way on the basis of the success of the pilot project; in terms of varieties, we first choose bulk products such as cotton and soybeans, which are not commonly planted; in the mode of subsidy, choose the way of separation of price and compensation, that is, reasonably determine the target price, and subsidize the price difference between the purchase price and the target price. From the perspective of cotton and northeast soybean pilot projects, this approach has achieved the desired results, and the path of agricultural product price reform with Chinese characteristics is becoming increasingly clear.

The price reform of agricultural products is not only a hard bone, but also the only way for modern agriculture. No matter how difficult it is, this hurdle must be overcome. In this regard, the reason why the agricultural product price reform has achieved success is that it not only has the courage to cross the river by feeling the stones, but also highlights the top-level design, which defines the direction, goal and path at the beginning, dares to innovate, respects practice, and does not adopt an one-size-fits-all approach, avoiding blindness and concussion.