The reform of corn purchasing and storage system starts in an all-round way. Market pricing farmers will not suffer losses.

Abstract:

The reform of corn purchasing and storage system is not only a major measure of supply-side structural reform in the agricultural field, but also an important step to deepen the reform of agricultural market economic system. The reform will be actively and steadily promoted in accordance with the principle of market pricing, separation of price and compensation, and the requirement of ensuring reasonable income for farmers--

The 9-year temporary corn purchasing and storage policy will be replaced by a new system from now on. On March 28, the National Development and Reform Commission, the Central Agricultural Office, the Ministry of Finance and other departments jointly held a press conference to respond to social concerns on the upcoming reform of the corn purchasing and storage system.

The reform of purchasing and storage system is imperative

"Promoting the reform of the corn purchasing and storage system is determined by the current situation of my country's grain." Zhao Yang, deputy director of the first bureau of the Central Agricultural Office, said.

Under the combined effect of factors such as the sharp drop in international food prices and the continuous decline in global energy prices, the price difference between domestic and foreign food has continued to increase, and the problem of insufficient competitiveness of my country's important agricultural products has begun to become prominent, which makes the reform of the corn purchasing and storage system imperative.

"Our corn stocks continue to increase, and the pressure on safe grain storage is greater. At the same time, the import of corn and its substitutes is also affecting the domestic market." Luo Shouquan, deputy director of the Grain Regulation and Control Department of the State Grain Administration, said that the prices of major grain varieties at home and abroad have been upside down for more than four years. At the same time, the import of corn substitutes such as barley, sorghum and dried cassava has surged, which has had a great impact on the corn market, resulting in insufficient processing and transformation, increasing inventory, and prominent pressure on safe grain storage.

In view of the above problems, the No. 1 document of the Central Committee this year put forward the reform ideas and policy framework of adhering to the market orientation and protecting the interests of farmers.

"In recent years, the reform of the target price reform of cotton and soybean has created conditions for promoting the reform of corn purchasing and storage system." Liu Xiaonan, deputy director of the Economic and Trade Department of the National Development and Reform Commission, said.

Adhere to the three core principles

"Compared with the temporary corn purchasing and storage policy implemented in the past, the guiding ideology of this reform is the same, that is, insisting on protecting the interests of farmers and ensuring national food security as the starting point and goal." Liu Xiaonan said.

In Zhao Yang's view, the general direction of the current reform has been clear, but in the implementation steps, we should adopt the method of "implementing policies by varieties and gradually advancing". Specifically, we must grasp the three core principles of corn where the contradiction between production, storage and marketing is relatively prominent.-Market pricing, separation of price and compensation, and protection of farmers' reasonable income.

The so-called market pricing is to realize that the price of corn is determined by the market in accordance with the laws of the market economy, which truly reflects the relationship between market supply, production and sales follow the market, and form a new market pattern of purchase and sales entities and multi-channel circulation; the separation of price and compensation is to provide subsidies to farmers Separated from the price; to ensure reasonable income for farmers is to comprehensively consider factors such as reasonable income for farmers, financial affordability, coordinated development, establish a subsidy system for corn producers so that farmers will basically not suffer losses, their enthusiasm for growing grain will not be weakened, and local enthusiasm for grasping grain will not be relaxed.

"In fact, the government subsidies to farmers were included in the temporary corn purchase and storage prices that have been increasing in previous years. The subsidies will now be stripped out to bring prices back to a reasonable level that reflects supply and demand, allowing farmers to decide on the adjustment of the production structure based on market demand." Zhao Yang said.

It is reported that this year, the three northeastern provinces and Inner Mongolia Autonomous Region will cancel the temporary purchasing and storage policy and replace it with a new mechanism of "market-oriented acquisition" and "subsidy. On the one hand, the price of corn is formed by the market, producers follow the market to sell corn, and various entities enter the market to purchase independently, realizing that the market regulates production and demand; on the other hand, a corn producer subsidy system is established, and the central government subsidy funds are allocated to the provinces. The local government coordinates the payment of subsidy funds to producers to maintain the basic stability of corn planting income in advantageous production areas. Relevant departments will encourage diversified market entities to enter the market for acquisitions, credit support, promote the adjustment of planting structure, and reasonably digest inventory.

"The reform of the corn purchasing and storage system is a major measure of supply-side structural reform in the agricultural field, and it is also an important step in deepening the reform of the agricultural market economic system." Liu Xiaonan said that this reform is extensive and has a bearing on the interests of the broad masses of farmers and the enthusiasm of all localities to attach importance to agriculture and grasp grain, and the steps of the reform should be both positive and prudent.

Market-based acquisitions will be the main channel

"This year, the central government has further increased its investment in grain circulation and other aspects. Under the current situation of prominent grain inventory pressure and heavy burden of financial interest expenses, the central government has specially arranged subsidy funds for corn producers." Sun Zhi, deputy director of the Department of Economic Construction of the Ministry of Finance, said at the briefing.

In response to the question of "the phenomenon of land circulation in Northeast China is relatively common, how to ensure that subsidies are really paid to producers", Liu Xiaonan said that subsidies are allocated to provinces and regions and paid by local governments as a whole, based on the long-term accumulated work experience of local governments. They have a better understanding of local reality and relevant measures are more accurate. In addition, subsidies are paid by means of area publicity and all-in-one card payment to avoid management blind spots. Relevant departments will also increase supervision and guidance to local governments, and study and formulate relevant plans to effectively prevent a large range of farmers from "difficult to sell grain".

Market-oriented acquisition will become the main channel to solve the acquisition problem, and the diversification of the acquisition subject will inevitably lead to the diversification of the source of funds. Li Nan, deputy general manager of the Grain, Cotton and Oil Department of the Agricultural Development Bank of China, said that as the only agricultural policy bank, the Agricultural Development Bank will actively support various purchasers that meet the loan conditions to enter the market.

According to reports, at present, the target price reform of cotton and soybean in Xinjiang and Northeast China is in progress. With the gradual promotion of the reform of corn purchasing and storage system, rice, wheat and other grain varieties will continue to implement the minimum purchase price, and relevant departments will pay close attention to the follow-up reform plan, so as to straighten out the reasonable price comparison relationship between different grain varieties.

As soon as the vernal equinox passed, all places entered a busy spring ploughing season. "Agriculture is singing the song of the four seasons. The highlight of agricultural development this year is still the optimization and adjustment of the planting structure. The reform of the corn purchasing and storage system is expected to force the optimization of its production structure." Chen Youquan, deputy inspector of the Planting Management Department of the Ministry of Agriculture, said.