Activate the market to prevent large-scale “selling food”

[ China Agricultural Machinery Industry News ] The State Council held a press conference on February 6th. Han Jun, deputy director of the Central Rural Work Leading Group Office, pointed out that farmers are now worried about “selling food difficulties”. According to the requirements of Document No. 1, the local party committee To consolidate the main responsibility of the government, we must ensure that at this juncture, some people collect food, have money to collect food, have stocks, and transport food to prevent large-scale "selling food."

Activate the market to prevent large-scale “selling food”
The State Council held a press conference today. Tang Renjian, deputy head of the Central Rural Work Leading Group and director of the office, and Han Jun, deputy director of the Central Rural Work Leading Group Office, interpret the "Central Committee of the Communist Party of China and the State Council on the in-depth promotion of agricultural supply-side structural reforms to accelerate the cultivation of agricultural and rural areas. A number of opinions on the development of new kinetic energy, and answered questions from reporters.
A reporter asked: The reform of the storage system, such as corn, is very much concerned by farmers and has a great impact. I would like to ask, what are the current progress and results? What are the plans and arrangements for the price formation mechanism of the main agricultural products and the reform of the storage system?
Tang Renjian, deputy head of the Central Rural Work Leading Group and director of the office, pointed out that it is an important measure to activate the market.
Han Jun, deputy director of the Central Rural Work Leading Group Office, said that the reform of the price formation mechanism and the storage system of important agricultural products such as grain is the highlight of the structural reform of the agricultural supply side. In the direction of reform, we must adhere to the market orientation and protect the interests of farmers. In the rhythm of implementation, we must adhere to the variety of policy and gradual advancement. In the past three years, there have been many initiatives in this area, and important progress has been made. For example, the rapeseed temporary storage policy has been abolished, the cotton target price reform pilot has been implemented in Xinjiang, and the soybean target price has been implemented in the four northeastern provinces. In the pilot of reform, last year, in the four provinces of Northeast China, according to the principle of market pricing and price separation, the pilot program for the reform of the temporary storage system for corn was launched.
Han Jun pointed out that in accordance with the requirements of the No. 1 Document of the Central Government, the next step is to adhere to and further improve the low purchase price policy for wheat and rice. This policy will not change in 2017, and the low purchase price policy for wheat and rice should continue to be strengthened and further improved. The perfect direction is that the low purchase price level should be reasonably determined. It should reflect the supply and demand relationship of the market, and increase the flexibility of price adjustment to form a reasonable price relationship between different grain varieties.
Han Jun said that the reform of the corn storage system is a hard battle for the structural reform of the agricultural supply side. We are closely tracking the progress of the reform. Judging from the implementation situation, this reform has made breakthrough progress, and the positive effects of the reform are gradually emerging. Mainly in several aspects: First, the market has been activated. When the corn temporary storage policy, the price is set at 1.12 yuan, the price is not sustainable. At such a high price, the corn collected can only be placed in the Curry, and the four provinces in Northeast China will purchase and store the government in 2014. The corn accounted for 88%. Now that the temporary purchase and storage policy has been abolished, the multi-party purchase and sales entity has entered the market, and this situation has already taken shape. The northeast corn market was relatively sluggish in the first two years. Last year, the “North Grain South Transportation” became increasingly active, and the railway sector was under great pressure.
Second, the industry chain was invigorated, and as the price of corn began to accompany the market, the price relationship between upstream and downstream was gradually smoothed out. In the past, many processing companies, including feed enterprises, used corn imported from abroad, especially corn substitutes, and sorghum, barley, and corn distiller's grains replaced domestic corn. Now that the price has entered the market, the domestic corn price has dropped, so that the livestock industry has turned over the belly or the scale of corn processing and transformation has been expanding. This year, I went to the Northeast for several investigations and felt that the operating rate of processing enterprises continued to rise, and even some enterprises began to expand corn processing capacity.
Third, it has improved competitiveness. Beginning in July 2013, domestic and international corn prices began to “upside down”, international prices fell all the way, and domestic temporary storage prices continued to increase. By May and June 2015, the price difference between domestic and foreign corn was as high as 1,000 yuan per ton. The difference is so big, domestic companies do not need domestic corn, and our corn is lying in the library to sleep. After the reform of the corn storage system, the price of corn at home and abroad has gradually remained flat. By January 2017, the domestic corn price has been lower than the 50% per ton of foreign-invested duty-paid tax, and the price advantage of imported corn is no longer apparent. As a result, the import of corn and its substitutes has decreased significantly, with a decrease of about 30-40% compared with the same period last year.
Fourth, it has promoted the adjustment of agricultural structure. In the past few years, because of the high price of corn, farmers made corn to make money, so a large number of farmers did not grow soybeans and replanted corn. Now that corn prices have returned to the market, they have gradually corrected the distortion of agricultural resource allocation. In 2016, the national grain corn was reduced by about 30 million mu, and the planting area of ​​light black dragon corn was reduced by more than 19 million mu. Farmers began to plant some high-yield crops.
Fifth, the basic benefits of farmers' corn cultivation have been guaranteed. The reform of the corn storage system is market pricing plus producer subsidies, both of which are indispensable. Through the establishment of a corn producer subsidy system, the central government issued a subsidy of 39 billion yuan to the four northeastern provinces. According to the corn planting area in 2014, it is equivalent to 170 yuan per mu, which is converted according to the average yield per mu. A pound of grain is equivalent to 2 cents. The difference in the amount of land per mu in the four northeastern provinces is supplemented by the planting area in 2014. The gap between the planting areas of the provinces in 2015 and 2014 is relatively large. This subsidy has now been sent to farmers. At the current market price level, the income of farmers selling grain plus subsidies, farmers say, corn is still accountable and profitable. I went to Heilongjiang to investigate, and many farmers said that the good day of 1.12 yuan a pound has passed. The peasants also know that when the grain is bought, it is placed in the treasury, and it cannot be adjusted at all. No one goes to the northeast to adjust the grain. This policy must be adjusted.
Han Jun said that for some large landlords, if the labor costs and land rents are taken into account, the income may be lower. In the northeast region, the amount of land for one mu of land will be 500 yuan, the income will be low, and some will even lose money. It should be noted that the market itself is also making adjustments, the policy has changed, and the rents of land in some areas have begun to show an automatic downward trend. For example, in Heilongjiang, the rent of an acre of land was lowered by about 150 yuan last year, which is reasonable.
Han Jun said that practice has proved that the reform of corn storage, market pricing, and price-complementation is correct. It is necessary to enhance confidence and unswervingly move forward. Of course, we must do a good job in risk prevention. The Lunar New Year has just passed, and now the Northeast farmers are another peak in selling grain. Now farmers are worried about “difficulty in selling grain”. According to the requirements of Document No. 1, local party committees and governments at all levels must also consolidate the main responsibilities, do everything possible to guide multi-agents to enter the market, encourage and support processing enterprises, including feed enterprises, to process horsepower. Transform corn, do a good job in food transportation, and do a good job in production and marketing. We must ensure that nowadays, there are people collecting food, having money to collect food, having stocks, and transporting food to prevent large-scale "selling of grain." ".


(Original title: Deputy Director of the Central Agricultural Office: Preventing large-scale “selling food”)

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