Improve the corn producer subsidy system to promote the adjustment of crop production structure

[ China Agricultural Machinery Industry News ] The cancellation of the temporary corn storage policy and the establishment of a corn producer subsidy system are in line with the relevant rules of the World Trade Organization, and are also an inevitable requirement for China to further promote the structural reform of the agricultural supply side. In 2017, the No. 1 Document of the Central Committee clearly stated that it will firmly promote the pricing and price-separation reform of the corn market and improve the producer subsidy system.

Improve the corn producer subsidy system to promote the adjustment of crop production structure
According to the implementation of the corn producer subsidy system in Northeast China in 2016, the policy details should be announced as soon as possible in 2017, the subsidy funds should be concentrated in the advantageous production areas, the order agriculture should be developed and the regional specialty agricultural product brands should be cultivated to better promote the smooth adjustment of planting structure adjustment.
Publish policy details as soon as possible to stabilize farmers' expectations for grain production. The general rule of farmers' farming arrangements in the northeast region is to start the land preparation after the autumn harvest and complete the preparation work before the Spring Festival, so that the material input cost can be saved by 20%. The time when the policy rules are announced will directly affect the cost of land transfer and the production and operation of farmers. The “Implementation Opinions of the Ministry of Finance on Establishing a Maize Producer Subsidy System” was announced to the public on June 20, 2016. The “Maize Producer Subsidy Implementation Plan” in Heilongjiang, Jilin, and Liaoning was announced to the public at the beginning of August 2016. According to the total amount of subsidy funds issued by the central government, 10%, 5%, and 5% were respectively adjusted as provincial-level planting structure adjustment funds to support the adjustment of corn planting structure. Before the introduction of these policies, the land transfer contract in Northeast China has been signed, and the corn has already been planted. The corn producer subsidies and planting structure adjustment subsidies are not expected by the farmers, and they have not been able to play the role of guiding farmers' planting structure adjustment in time. It is suggested that from the stability and continuity of the policy of benefiting farmers, the rules for the 2017 corn producer subsidy system will be announced before the late planting, the farmers' expectations will be stabilized, and the planting plan will be arranged as soon as possible.
The subsidy funds will be concentrated in the advantageous production areas to ensure that the corn planting income in the advantageous production areas is basically stable. As an important energy feed, the trend of demand growth is long-term, and the current increase in stocks is temporary. The adjustment of corn planting structure is mainly to appropriately reduce the non-advantageous areas, not only the key core production areas, but also strengthen the capacity building to ensure the basic self-sufficiency of grain. The “Implementation Opinions of the Ministry of Finance on Establishing a Maize Producer Subsidy System” proposes to encourage local governments to concentrate subsidy funds in advantageous production areas and ensure that corn planting income in the dominant producing areas is basically stable. In 2016, Heilongjiang did not distinguish between dominant production areas and non-dominant production areas, and corn producers subsidized the province to implement uniform standards. The subsidy standard per mu in Jilin and Liaoning is based on the county, trying to concentrate the subsidy funds to the dominant production areas. However, most towns and towns report the farmer corn acreage data (bank accounts) in 2015 as the basis for the distribution of corn producer subsidies. The actual acreage area is large, and the subsidy funds have not been concentrated in the dominant production areas. It is suggested that starting from the goal of corn planting structure adjustment, in 2017, the corn producer subsidy standard in the advantageous producing areas will be improved, and the corn planting income in the advantageous producing areas will be basically stable.
Develop order agriculture, cultivate regional specialty agricultural product brands, and promote the adjustment of corn planting structure in non-dominant production areas. After the establishment of the corn producer subsidy system, it is an inevitable choice to appropriately reduce the corn planting area in non-dominant producing areas and give priority to the development of crops or industries with comparative advantages. The cold and cold regions of Northeast China used to be the traditional wheat-producing areas and miscellaneous grains producing areas. The miscellaneous grains were also the dominant crops in the agro-pastoral area. Farmers in non-dominant producing areas generally have the willingness to adjust their planting structure, but are concerned about the market sales of alternative crops. On the one hand, based on the existing multi-grain brand, through the establishment of a standardized production demonstration base, apply for a number of agricultural products geographical indications and national geographical indication protection products, through provincial (autonomous region, city)-level famous agricultural products trade fair, China International Agricultural Trade Fair, etc. The platform has created a number of famous grain brands at home and abroad. On the other hand, focusing on key national and provincial agricultural industrialization leading enterprises, we will support a number of large-scale and high-level alternative grain processing leading enterprises, and guide leading enterprises to establish production and marketing with large-scale breeding households, family farms and farmer cooperatives. Collaborate and promote order production.


(Original title: Perfecting the corn producer subsidy system)

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