Further improve the corn producer subsidy system

Since the decision of the CPC Central Committee on several Major issues of comprehensively deepening Reform proposed for the first time to improve the price formation mechanism of agricultural products and pay attention to the role of the market in forming prices, our government has begun to reform or signal the reform of the minimum purchase price and temporary purchase and storage policy of grain and other important agricultural products. In 2014, the pilot project of target price subsidy for soybeans and cotton in Northeast China and Inner Mongolia was first carried out, which is considered to be the first exploration to improve the price formation mechanism of agricultural products. The problem of corn accumulation is more prominent. In 2016, the temporary collection and storage policy was adjusted to a producer subsidy system, which was interpreted as a breakthrough in China's agricultural supply-side reform. Drawing lessons from the pilot experience of target price subsidy for soybean and cotton, and combining with the reality of corn supply and demand, the improvement of corn producer subsidy system should start from the following four aspects:

Take more measures to digest corn stocks at the same time. Corn is only a periodic surplus, and there is a problem of destocking in the short term. As an important energy feed, the demand for corn is growing for a long time. The elimination of inventory should fundamentally eliminate the causes of high inventory and establish a long-term mechanism for the balance of grain supply and demand. The corn market price is formed by the relationship between supply and demand, and farmers will adjust the planting structure according to the market demand. On the supply side, we will continue to promote the structural adjustment of corn in the "sickle bend" area, mainly by appropriately reducing the non-dominant areas, especially the fourth and fifth accumulated temperate zones in the north of Heilongjiang and the northeast of Inner Mongolia, as well as the eastern mountainous areas of Jilin Province, through market guidance and policy support, we will withdraw the corn planted across the region and expand the scale of grain-bean rotation and "grain-to-feed". From the demand level, the main trend of domestic corn, feed accounts for about 65%, corn deep processing less than 30%, edible less than 10%. Through subsidies for processing enterprises, leading agricultural enterprises are encouraged to speed up the transformation and processing of corn, develop intensive processing industries, extend the industrial chain, and turn "granaries" into "granaries" + "meat depots" + "milk bottles" + "sugar cans" + "fuel tanks". At present, the international oil price is low, and the price of cassava starch is more than double that of corn starch. Corn processing fuel ethanol has a price advantage.

Cultivate diversified market subjects. After the establishment of corn producer subsidy system, the state is no longer the main force of corn acquisition, multi-subject market-oriented acquisition will become the norm of corn purchase market in the future. The state and local governments (especially the Agricultural Development Bank) should increase credit support for the purchase of corn, strengthen market information services, actively guide multiple subjects to enter the market to collect grain, change "grain storage in grain depots" into "circulation in the market", and enhance industrial vitality. it is also conducive to reducing inventory and alleviating the difficulty of selling grain.

Establish a system of bottom-up collection and storage. After the establishment of the corn producer subsidy system, dealers will find buyers themselves and bear all the market risks, so they will be more cautious in entering the market, and it is expected that farmers will have more difficulties in selling grain, especially when they encounter natural disasters. The problem of selling difficulties has occurred in the target price reform of cotton and soybeans. With reference to the measures for the management of special grain reserves, the regulation and control reserves of grain can be institutionalized and legalized. Large enterprises such as China Grain Storage can, in combination with the task of the national grain reserve, enter the market to support the purchase when it is difficult to sell.

We will improve the implementation plan and rules for corn producer subsidies. In view of the outstanding problems in the implementation of the corn producer subsidy implementation plans and rules formulated by Liaoning, Jilin, Heilongjiang and Inner Mongolia respectively, the focus is to put forward suggestions to improve the scope, object, basis and standards of subsidies, and to optimize the implementation plan.