Strengthen policy coordination and improve farmers' enthusiasm for growing grain

From 2004 to early 2014, under the influence of the market purchase policy, the market prices of rice, wheat and corn, the three major grains in China, rose steadily. However, since the second half of 2014, the rising power of grain prices has become increasingly prominent, especially since the launch of new grain in 2015, grain prices have shown an overall downward trend. The decline of the three major grain prices shows a new pattern of supply and demand in China's grain market. at the same time, it also reflects that the grain support policy and the macro-control policy system of important agricultural products need to be adjusted urgently.

The main reasons for the decline of food crop prices in recent years

(1) the supply fundamentals of the domestic market: output has increased year after year, and grain stocks are high. The fundamentals of loose supply and demand are the root cause of the decline in grain prices this round. Since 2004, China's grain has increased year after year. At the same time, after years of stock market acquisition, China's grain inventory has also reached an all-time high. Continuous collection and storage has brought great pressure on grain inventory in our country.

(2) the fundamentals of supply and demand in the international market: supply is generally loose, and grain prices remain low. The downturn of international grain prices and the large price gap are the external causes of the decline of grain prices in China. Affected by macroeconomic and supply and demand fundamentals, international grain prices have entered the downward channel since 2011. From January 2011 to March 2016, international after-tax prices for rice, wheat and corn fell by 23.7%, 42.2% and 41.0%, respectively.

(3) the superposition of "demand" and "non-demand" imports: domestic grain prices are under pressure under the background of price upside down. The increase in the scale of imported grain is the transmitter that leads to the decline in domestic grain prices. Due to the obvious price difference between domestic and foreign markets, the scale of "non-demand" grain imports has expanded significantly on the basis of the original "demand-oriented" imports. The impact of imported grain on the domestic market: on the one hand, it replaces the consumption demand of domestic grain, on the other hand, it obviously suppresses the domestic grain price.

(4) Policy factors and price transmission among varieties, upstream and downstream of industries and inter-regions have led to a general decline in grain prices across the country. It is mainly shown in three aspects: first, the price transmission among grain varieties, which is prominently shown in the fact that the continuous increase in grain feed demand leads to more prominent substitution and price conduction among varieties. Second, the price transmission in the upper and lower reaches of the industrial chain aggravates the decline in grain prices. The third is the influence of price linkage in the region.

Policy coordination should be strengthened to deal with the decline of grain prices.

As a country with a large population and agriculture, food security has always been the foundation of China's economic, social and agricultural stability. The recent drop in grain prices has also had a far-reaching impact on China's agricultural development, especially food security, promoting grain production, increasing farmers' income, and ensuring the stable development of agriculture.

Fundamentally speaking, it is not a long-term solution to ensure the effective supply of grain and increase the income of grain farmers by relying on a single price support policy, and the fundamental way is to improve the comprehensive grain production capacity and the comparative efficiency of growing grain. In response to the current objective reality of low grain prices, insufficient demand, declining income of the main body of the industrial chain and high national reserves, we need to improve the existing price support policy framework, through policy coordination, realize the simultaneous development of both the supply side and the demand side of grain production: it is necessary to improve the supply level, improve the supply efficiency and optimize the supply structure, innovate effective supply to promote consumption upgrading and improve output efficiency. At the same time, it is necessary to further strengthen demand management, increase policy support in grain production, circulation, processing and trade, strengthen the coordination and cooperation of various policies, maintain policy determination, and give full play to the synergistic effect of policies. this can not only improve the implementation effect of the price support policy, but also fundamentally improve the enthusiasm and income of grain farmers, and achieve the goal of ensuring food security.

(1) give full play to the decisive role of the market in the price formation mechanism of agricultural products and improve the market regulation and control policies for agricultural products.

1. Improve the existing grain support price system.

The first is to improve the policy of minimum grain purchase price. Considering comprehensively the factors such as the cost of grain production, the opportunity income of growing grain, the carrying capacity of the purchasing subject, the market supply and demand, the grain price in the international market and the overall operation of prices, we should reasonably formulate the minimum purchase price level of different grain varieties, and explore and formulate differential policies according to different needs and differences in regional economic development. The second is to improve the new mechanism of "market-oriented acquisition" and "subsidy" of corn. Establish a mechanism by which temporary collection and storage prices can rise and fall. The surplus of supply and demand in the current year is taken as the reference standard for the total amount of collection and storage, and the quantity of temporary collection and storage is determined. Strengthen the supervision of temporary collection and storage. The third is to standardize the policy-oriented grain bidding trading mechanism. Scientifically determine the planned volume and floor price of the market collection and storage and regulation of the State Reserve auction. We will further improve the detailed rules of open market transactions and the supervision and inspection mechanism.

two。 We will build a policy system of target prices for important agricultural products and speed up the reform of the market price formation mechanism. The promotion of the target price should pay attention to the coordination of the whole policy system. According to the national conditions of our country, at present, we take the target price subsidy as the core, and at the same time carry out pilot work such as target price insurance policy and marketing loans in some varieties, gradually accumulate experience and expand to other varieties, to build a target price policy system for grain and agricultural products with Chinese characteristics.

3. We should establish and improve the market risk control mechanism and attach importance to the application of market-oriented mechanism in the price risk management of agricultural products. The first is to explore and develop insurance for the average income of important agricultural products, so as to provide farmers with insurance products of the nature of income security and spread the price risk of agricultural products. The second is to carry out agricultural product price risk control training and risk management pilot projects among large-scale producers of agricultural products (such as agricultural enterprises, professional large households, family farms, etc.). The third is to create a good market operating environment to promote the function of the risk management market, and establish an agricultural product price risk management system with policy support and market mechanism.

(2) improving the quality and efficiency of the production and supply of agricultural products and strengthening the supply-side structural reform

1. Adapt to the upgrading of consumer demand and create new

Efficient supply. The first is to ensure the level of supply. We will implement a new food security strategy of basic self-sufficiency in grain and absolute safety in food rations, and ensure a sustained increase in the comprehensive production capacity of high-quality rice and wheat. The second is to optimize the supply structure. We will further adjust and optimize the layout of regional productive forces, the ternary structure of grain economy and feeding, and the structure of planting and breeding, and build a supply pattern of agricultural production that matches the carrying capacity of resources and environment and the upgrading trend of consumption structure. The third is to promote the diversification and quality of supply varieties. We will vigorously develop green agriculture, characteristic agriculture and brand agriculture, strengthen the research and development and promotion of varieties of high-quality agricultural products, establish a system of grading and classification standards to implement diversified and differentiated production, increase the added value of agricultural products, and promote agricultural quality and efficiency.

two。 Driven by innovation, reduce the cost of resource supply and improve the efficiency of agricultural production. First, on the basis of maintaining the red line of cultivated land, we should improve the quality of cultivated land, build farmland with high and stable yields, focus on strengthening the construction and improvement of the quality of cultivated land in major grain producing areas and large-scale farmers, and improve farmland infrastructure. The second is to improve labor productivity, speed up scientific and technological progress, earnestly increase investment in agricultural scientific and technological innovation, agricultural extension and education, and the cultivation of new farmers, and promote scientific and technological innovation in the seed industry. steadily promote various forms of scale operation (land, labor factors, technical services, etc.). Third, focus on improving the efficiency of resource utilization, comprehensively popularize key technologies such as labor-saving, land-saving, water-saving, fertilizer-saving, medicine-saving, seed-saving and energy-saving, speed up the development of mechanization, reduce the cost of production factors, and improve output efficiency.

3. We should build a safety net for farmers' income and mobilize the enthusiasm of increasing the effective supply of agricultural products. Ensuring the basic income of grain farmers is the fundamental to arouse the enthusiasm of grain farmers. First, establish and improve the GSP subsidy system covering all grain farmers. The second is to improve the benefit compensation mechanism for major grain producing areas. Including two levels, the central government compensates interests through financial transfer payment according to the total grain production in the main producing areas, including the compensation for the expenditure on public affairs of financial support for grain production in the main producing areas, it also includes special support for the construction of comprehensive grain production capacity in the main producing areas.

Through the way of linking with the purchase and sale of the main producing areas, counterpart support and compensation shall be implemented. Including compensation and transportation, warehousing and other subsidies based on the total amount of transfer. The third is to increase support for large-scale growers and other new grain producers. The focus of subsidies for large-scale farmers should focus on the subsidies of capital loans for prenatal tillage production, the purchase and maintenance of agricultural machinery, technical extension services and integrated pest control subsidies, as well as post-natal treatment facilities and marketing subsidies such as drying and drying fields. At the same time, to increase the financial support for large-scale grain farmers, the key is to improve the convenience and availability of loans.

4. Improve the operational efficiency and comprehensive competitiveness of the supply system. We will speed up the transformation of logistics channels for agricultural products across provinces and regions to form a modern logistics system that is convenient, efficient and economical. Support the construction of large agricultural products logistics nodes such as coastal ports, inland river terminals and railway stations. Strengthen cooperation in production and marketing areas of important agricultural products. Guide the joint operation of purchasing, marketing and transportation enterprises to create cross-regional logistics channels for agricultural products.

(3) promoting consumption, regulating trade and optimizing demand management policies

1. We will speed up the development of agricultural products processing industry. One is to speed up the digestion of grain reserves through auction or targeted sales. The second is to adjust the processing consumption structure and give full play to the regulator role of the balance between grain supply and demand. Third, in conjunction with the implementation of the policy of subsidies for the processing of agricultural products in the place of origin, appropriate subsidies should be given to enterprises that use grain auctioned by the State Reserve for processing. Fourth, we should appropriately liberalize the processing of grain and biomass energy and increase the consumption of corn.

two。 We will optimize trade regulation and control policies. First, adjust the trade structure and make clear the priority of opening up markets for important agricultural products. Rations must achieve a balance between total supply and demand. Adjust the trade policy according to the import priority, reasonably determine the import scale of major agricultural products, strengthen the combination of imports and reserves, and establish an import reserve adjustment mechanism. The second is to launch the trade adjustment assistance system in view of the damage to related industries.