How much is the impact of corn price drop on farmers? Why is the price falling?

After a heavy snow, the grain broker came to corn grower Zhao Jincheng to see the grain,"Now have to be classified into third class, second class is not enough." "If it's third-class, you can sell it for seventy-one cents if you send it to the place." The price of corn dropped from 0.90 yuan per catty in 2014 to 0.71 yuan per catty this year. Villagers in the countryside all store corn and wait for the price. However, Zhao Jincheng was in a hurry to spend money, and he had to sell it even if the price was low, because he still had loans to repay as soon as possible.

The reporter learned that in 2014, the temporary storage price of corn in our province was 1.11 yuan per catty, while this year's temporary storage price of corn was one yuan per catty, which was lowered by 0.11 yuan per catty compared with 2014. The price of corn on the market also plummeted, from more than nine cents per catty in 2014 to more than seven cents per catty this year. How much impact does this downward adjustment have?

"For the common people, it's just a dime. If one mu of land has 1700 catties of grain, then one mu of land will earn 170 yuan less, and 300 mu of land will earn more than 50,000 yuan less." The farmers calculated such an account with reporters.

According to the calculation of the total corn output of the whole country in 2014 of more than 400 billion catties, the income will be reduced by 40 billion yuan if the price is reduced by one dime per catty. This 40 billion yuan is related to thousands of farmers, and tens of billions of yuan of income have been evaporated in an instant. How much impact will it have on farmers? "The cost of one thousand yuan per mu of land, sell more than one thousand yuan, and earn one hundred yuan per mu of land. It's better to go out and work. We plant so much land in a year, and there are several people. We are so busy that even earning thirty or forty thousand yuan is not enough for our living expenses." A farmer told reporters in an interview.

Why prices are falling

It is understood that in recent years, the number of grain imports in China has increased year by year. By 2014, the total amount of imported grain has exceeded 100 million tons, thus forming the phenomenon of price inversion at home and abroad. Chen Xiwen, deputy head of the Central Rural Work Leading Group, said at a news conference: "If the food prices in the international market are compared with those in 2011, the food prices of the three major staple foods in the current international market will fall by almost 40% to 50%. Well, judging from China's actual situation, it should be said that in order to mobilize farmers 'enthusiasm and ensure farmers' reasonable income, the state has in fact continuously and appropriately raised temporary storage prices and minimum purchase prices over the past few years. In this way, a situation opposite to the trend of prices in the international market has emerged. We are constantly raising prices, and the international market is constantly lowering prices. After a certain point, China's grain prices will be higher than those in the international market."

In addition, corn planting area has increased year by year. According to China Statistical Yearbook, the corn planting area in China in 2007 was less than 30 million hectares. By 2014, this number had increased to more than 37 million, especially in our province, where many farmers have switched from soybeans to corn.

"A few years ago, corn was purchased at a protective price of more than 2000 yuan per ton, so our farmers 'enthusiasm for planting corn was very high, so it increased year by year." Corn growers have said.

Next step: price compensation separation

After the price of corn fell this year, the phenomenon of competing for land in 2014 was also gone, and the growers said: "If the rent does not fall, then next year it will not be so much." Who dares to buy this year? If the land price doesn't drop, the corn price will drop. No one dares to plant it."

As prices fall, the cost of contracting land the following year falls. After grain prices are lowered, will farmers 'enthusiasm for growing grain be affected? How to ensure food security next year?

Chen Xiwen, deputy head of the Central Rural Work Leading Group, said that in order to solve the current situation of grain prices, the next step in order to stimulate market vitality, China's collection and storage policy will be further adjusted,"the principle is to make prices and subsidies can be separated, after the price supplement is separated, the market can be activated, farmers sell grain at market prices, and business entities collect grain at market prices, thus invigorating the grain market." What if the market price is too low? The government should adopt appropriate policies to directly subsidize farmers, but they should be separated from prices."

A few days ago, Premier Li Keqiang presided over an executive meeting of the State Council to determine measures to stabilize grain production and increase income from grain cultivation, ensure food security and farmers 'interests, and protect farmers' enthusiasm for grain cultivation. Among them, it is required to do a good job in the purchase of autumn grain, strictly check the white strip and pressure the price, to prevent the difficulty of selling grain.

The temporary storage price of corn was lowered, and farmers immediately felt the pressure of falling incomes. The reporter traced several links along this industrial chain and found that the single planting structure, high production cost and excessive import volume are all hidden problems behind the corn industrial chain. To solve these big problems, we need to adjust the industrial policy, planting structure, agricultural technology and other aspects at the same time, and improve the "physique" of the corn industry as a whole.