Corn price reform cannot stop at abolishing temporary storage.

The market-oriented reform of corn is not simply to abolish temporary collection and storage, but to activate the enthusiasm of all kinds of social subjects to enter the market on the basis of promoting the separation of price and compensation and withdrawing from the policy market. However, there are practical difficulties in cultivating diversified collectors to enter the market, because grain acquisitions require a lot of money. In addition, it is necessary to adjust the planting structure, form a reasonable production layout, and develop marketable varieties.

This year is the first year to abolish the corn temporary storage system, and it is also the most critical time for the market-oriented reform of corn purchase. The author believes that the market-oriented reform of corn is not simply to cancel temporary collection and storage, but to activate the enthusiasm of all kinds of social subjects to enter the market on the basis of promoting the separation of price and compensation and withdrawing from the policy market.

In the northeast, in the early stage of the purchase of autumn grain, it was difficult for farmers to sell grain, and corn prices fell sharply. At present, grain collection and storage enterprises have "difficulties in foreign transportation" and corn prices have risen slightly. As the overall supply of the domestic corn market still exceeds demand, coupled with the abolition of the temporary collection and storage policy this year, in the long run, it is an inevitable trend for corn prices to fall relative to last year. But at present, as the temperature gradually decreases, drying becomes more difficult, and transportation is affected by rain and snow, resulting in a short-term rise in prices. Between ups and downs, farmers are in a dilemma.

From the perspective of the upstream and downstream of the industry, it is also a dilemma. After the temporary storage system was abolished, corn prices continued to decline, affecting the enthusiasm of farmers to a certain extent, especially for some large households. However, it is beneficial to breeding enterprises and deep processing enterprises, and improves the overall competitiveness of the industrial chain. Sichuan Province, a major province of animal husbandry, is the beneficiary of the acquisition of the new policy, and the feed cost of farmers has dropped significantly. The corn processing industry has also benefited a lot from destocking, and overcapacity has been alleviated.

From the perspective of regulation and control, we are faced with the dilemma of food security. Grain prices are linked to producers at one end and consumers at the other. At present, the overall food security is still in tight balance. The purpose of price reform is to ensure food security in accordance with market laws. First, to maintain the basic balance between grain supply and demand, corn stocks can no longer increase rapidly; second, to prevent farmers' income from falling sharply and output from falling sharply after loose grain supply. At present, the price of corn in Northeast China is basically the same as the CIF price of imported corn, and it is internationally competitive for the first time in many years. From this point of view, the regulation and control has achieved preliminary results.

The ultimate goal of price-compensation separation is to let the market determine the price. To solve the dilemma in the reform, we must first improve the diversified market subjects, that is, reasonable acquisition channels. In 2004, the relevant departments proposed to completely liberalize grain prices, but with the continuous improvement of temporary storage prices, only China Grain Storage is purchasing, and private enterprises have actually withdrawn from the market. At present, there is no problem to abolish the temporary storage policy, but it is difficult to actively cultivate diversified collectors to enter the market, because grain acquisition requires a lot of funds. The main body of state-owned acquisition has financial guarantee, while other subjects are difficult to be guaranteed. The rise and fall of prices is the law of the market, but the difficulty of selling grain should never happen.

Secondly, it is necessary to have a reasonable production layout, which requires the adjustment of planting structure. In China, corn is planted all over the southwest to North China to Northeast China, and the product market is also relatively concentrated. On the other hand, agricultural cultivation in the United States is divided into corn belt, cotton belt, dairy belt and so on, rarely fighting with each other. Corn planting has an internationally recognized Sautéed Sweet Corn with Salted Egg Yolk belt, in the context of high corn production and inventory, it is necessary to maintain the basic stability of corn planting income in superior producing areas. For non-dominant areas, subsidies may be given to the conversion of other crops. In the long run, non-dominant areas still need to find advantageous crops suitable for the region, and properly develop vegetables, forest fruits, potatoes, and so on.

For the advantageous corn producing areas, we should not only rely on the subsidy of one or two hundred yuan per mu, but also develop marketable varieties. At present, the demand for grain corn is reduced, and the proportion of silage corn and fresh corn is increasing. Take fresh corn as an example, with the development of urban agriculture, all kinds of fruit corn are popular with consumers, and the price is much higher than that of ordinary corn. Whole-plant silage corn is also welcomed by large-scale farmers, and the market price is better. This kind of market demand is the navigation light of corn structure adjustment in the future.