Important news: corn temporary storage policy will be cancelled in 2016, corn prices will drop sharply!

Liu Xiaonan, deputy director of the Economic and Trade Department of the National Development and Reform Commission, said on the 28th that in 2016, the three northeastern provinces and Inner Mongolia Autonomous region adjusted the temporary corn collection and storage policy to a new mechanism of "market-oriented acquisition" and "subsidy". In other words, starting from this year, the temporary storage policy of corn will be cancelled and a new mechanism of separation of price and compensation and market pricing will be implemented.

Affected areas: mainly in the three northeastern provinces and Inner Mongolia, including other corn planting areas in the country

Affected way: lower corn prices

Why doesn't the country harvest corn?

A: because there are too many. What is the stock of corn in our country? At present, the stock of corn in the country's grain is about 200 million tons. If we don't produce corn in 2016 and only use corn in stock, my corn will be enough for 1.4 billion Chinese to consume in a year.

Therefore, the slogan put forward by the Central Committee this year is that supply-side reforms should also be carried out in the agricultural sector. Accordingly, the state issued the guidance on the structural adjustment of corn in the "sickle bend" area, which plans to reduce the planting area by more than 50 million mu within five years. At the same time, we should encourage the development of the combination of planting and cultivation of minor grains, and adjust the agricultural structure of our country.

Will corn prices go down this year?

It will go down. Last year, the national corn temporary storage price was 1 yuan / jin, in fact, taking into account the dry humidity, transportation and other costs, many people sell corn prices of about 8-9 cents. The national liberalization of corn prices in 2016 means that corn prices are in line with the market. So what is the market price?

According to the current CIF price of corn import, the price of corn at 0.75 yuan / jin is more reasonable. In other words, the price of corn this year will be lower than last year.

The state says it wants to subsidize those who grow corn, how to make it up?

This year, the state gives certain financial subsidies to the three northeastern provinces and the Inner Mongolia Autonomous region, and the central financial subsidy funds are allocated to the provinces and regions, and the local governments pay the subsidy funds to the producers as a whole. Subsidies are made public by means of area announcement and payment by one card.

If the price of corn is down, will the price of wheat and rice go down?

No, I won't. According to the state, the minimum purchase price of wheat (third-class) produced in 2016 is 118 yuan per 50 kilograms, keeping the 2015 level unchanged. The lowest purchase prices of early indica rice (third grade, the same below), medium and late indica rice and japonica rice produced in 2016 are 133 yuan, 138 yuan and 155 yuan per 50 kg respectively.