New grain goes on the market as a protection for farmers

At present, new grain is on the market one after another. However, the grain market is not good this year, and corn prices have fallen off a cliff, which has had a great impact on the market. So, what do you think of the current decline in food prices?

The rise and fall of grain prices is a normal phenomenon of market fluctuations. Starting from this year, China has cancelled the corn temporary storage policy that has been implemented for 8 years, which has opened the prelude to the market-oriented reform of grain. With the high domestic corn inventory, the widening grain price gap at home and abroad, coupled with the overall weakness of livestock feed and grain processing enterprises, and the weak demand for grain consumption, the listing of new grain is bound to increase the pressure on market supply. In this context, carrying out grain market-oriented reform will not only help to digest the rising grain stocks, but also promote the domestic grain market prices to gradually approach the international grain prices. Therefore, the decline in food prices is a normal reaction of the market.

The decline of grain prices is not the purpose of grain market-oriented reform. The purpose of grain market-oriented reform is to straighten out the grain price formation mechanism, enliven the grain circulation market, improve the competitiveness of grain industry and grain enterprises, effectively restrain imports and reduce grain stocks. At the same time, in the reform, we should properly grasp the key point of safeguarding farmers' interests and protecting their enthusiasm for growing grain, and pay attention to balancing the relationship between ensuring national food security and giving full play to the role of the market mechanism.

Judging from the reality of the development of domestic grain production and grain market, when the direction of grain reform is clear, it is fundamental to ensure food security to come up with feasible support policies to reduce farmers' losses and protect the enthusiasm of grain farmers.

To make up for the losses caused by falling grain prices through subsidies is one of the core contents of the reform of the grain collection and storage system. How to achieve accurate subsidy is a key issue to be grasped. In the past, flood irrigation subsidies brought benefits to farmers to a certain extent, but the overall benefits continued to decline, but also brought some unfavorable factors.

In the new situation, subsidies need to grasp several principles, not only in line with the direction of grain market reform, but also in line with the relevant rules of the World Trade Organization, but also conducive to the protection of national food security and the enthusiasm of farmers. It is in accordance with this principle that the corn temporary storage policy will be abolished this year, and the collection and storage system of "market-oriented acquisition" and "subsidy" will be implemented to stabilize grain prices and protect the interests of farmers.

Of course, precision subsidy is only a means to protect the interests of grain farmers. Another important purpose of grain marketization reform is to continuously improve farmers' market subject consciousness and their ability to resist market risks. As the minimum grain purchase price policy and temporary storage policy have been implemented continuously for many years, many farmers have become dependent on the market support policy, indifferent to market awareness and insensitive to the rise and fall of grain prices. To promote the reform of grain prices is to bring prices back to the market. From this point of view, the rise and fall of grain purchase prices in the future will become the market norm.

With market awareness and risk awareness, grain farmers can gradually grow into the real market main body. In production and operation, they can constantly take the initiative to adjust the planting structure and varieties to meet the needs of the market, and reduce the use of chemical fertilizers and pesticides in accordance with the requirements of sustainable green ecology, and take the road of high quality and high price. At the same time, market awareness can also help farmers improve food brand awareness and agricultural insurance awareness as soon as possible, and gradually learn to use futures and other financial and derivative products to enhance value and protect interests. Now, some new agricultural operators, such as family farms, cooperatives and leading enterprises, have begun to register their own grain brands, process and sell brand grain, and have achieved good economic benefits. With the gradual improvement of the futures market and agricultural insurance system, some new agricultural operators can evade or transfer market risks through financial instruments such as futures market and price insurance.

It is conceivable that with the gradual deepening of grain reform, the grain price formation mechanism will also be gradually straightened out, and a grain market with smooth production and marketing, strong protection, and more secure food security will gradually take shape. At present, when the new grain is just on the market, it is particularly important to protect farmers' confidence and enthusiasm in growing grain through precise subsidies.