Analysis on the reasons for increasing Grain production but not increasing income in China

1. Relative surplus of some varieties in grain.

In 2015, China had a bumper harvest of staple grain crops such as rice and wheat, and the yield of medium rice increased by 5% to 10%. As a result, grain varieties became relatively "saturated", grain supply exceeded demand, and grain prices such as rice fell.

2. The difference between the import price of grain and the cost of domestic production is increasing.

In recent years, the labor cost in our country has increased, the land rent has increased, the materialization input has been operated at a high price, and the grain cost remains high, while some grain-producing countries have low grain production costs because of the high degree of mechanization or low labor costs. in the grain sales market, it is often sold at a price lower than the cost of grain production in our country. For example, the cost of rural labor in Vietnam is only equivalent to the price of China in the 1990s, and the price of their agricultural inputs is also lower than that of similar products in China. Therefore, their rice price is lower than China's home-grown rice production cost, resulting in some grain processing enterprises to seek the distance, import low-priced grain, the decline of the competitiveness of the domestic grain price market, resulting in a situation of low unsalable prices.

3. increased pressure on the state and society to collect and store money.

First, China has achieved 12 consecutive grain harvests, especially in 2015, when rice was a rare bumper harvest in recent years, the warehouses of state-owned enterprises were "full", the old grain depots at grass-roots grain stations were seriously in disrepair, many of them had lost their grain storage capacity, and the new grain depots were inadequate. the storage capacity is limited and it is difficult to continue to buy. Second, due to the national economic adjustment, some small and medium-sized grain processing and sales enterprises have difficulties in cash flow and reduce their acquisitions; grain brokers have also greatly reduced their purchases due to lack of funds, resulting in a situation of unsalable grain. Third, with the expansion of the planting area on a large scale, the original practice of storing grain by household is gone, and they do not store grain themselves but buy food in the market. At present, nearly 80% of the rural households in the plain have transferred their land, and there is no land for circulation in the mountain areas, and they do not grow their own. In other words, nearly 80% of the rural population's food rations need to be stored by state-owned grain depots and social granaries, and this part of the grain, which accounts for about 70% of the total output, was stored separately by farmers in the past. The task of storing grain is entrusted to the society, increasing the pressure on the storage capacity of the state and grain purchasing and selling enterprises.

4. The increase of planting area leads to the increase of total output.

Due to the low prices of cotton and other agricultural products in recent years, farmers cannot increase their income or even lose money, resulting in a substantial reduction in the planting area of these crops, most of which are used to expand the planting of soybeans, rice, and corn, resulting in an imbalance in the planting structure, resulting in an increase in grain area, an increase in total production, and a surplus in sales.

5. Poor conditions for grain sales in a few areas

In some areas, the market information is not smooth, the transportation is inconvenient, the sales is difficult, and the price is low; in addition, the drying equipment is unevenly distributed, so it can not be dried in time and can not reach the standard moisture, so it has to be unharvested or sold at a lower price.

6. The big growers are controlled by others.

In China, large growers, especially small and medium-sized ones, do not have drying equipment and adequate drying fields, so wet grain must be sold after rice harvest, while state-owned grain depots only harvest dry grain, and wet grain can only be sold to private drying enterprises and processing enterprises at a lower unit price. Some processing enterprises and private enterprises engaged in drying have seriously depressed the grades and prices when harvesting rice. According to the survey, although they implemented the state protection price at the time of acquisition, they first directly deducted 5% moisture, 1 moisture point deducted rice 0.75kg/hm2, and deducted 4% impurities, and then discounted to the required moisture point according to the measured moisture point. The average purchase price of medium indica rice machine mouth wet grain is 2.2yuan / kg, the lowest is less than 1.8yuan / kg, 0.2yuan / kg; less than last year, 2.4yuan / kg, 0.3yuan / kg. Glutinous rice market is even more unstable, falling from 2.6yuan / kg at the beginning to 2.2yuan / kg.

7. Cheap grain hurts farmers profoundly.

First, increase production without increasing income. Rice growers generally increased production in 2015, and prices fell by more than 10% due to changes in the sales market, which could not catch up with the price drop. The second is to dampen the enthusiasm of large households to grow grain. Low prices and difficulties in selling grain will seriously affect the enthusiasm of large grain growers. Some large households whose land transfer expires are considering whether to renew it in the coming year, and they are more concerned about what they will grow in the fields in the coming year. The sentiment of "non-grain" and "non-agriculture" is growing, and large households' investment in agricultural infrastructure is also greatly reduced. Third, it is disadvantageous to the planting of the next crop. Due to the difficulty of selling grain and the rainy weather, the rice harvest was delayed and the stubble could not be allowed in time, which affected the planting of rape and wheat, even if the planting investment was reduced, the seedling condition was poor.