[China Agricultural Machinery Industry News] Corn market reform is not simply to cancel temporary storage, but to promote the enthusiasm of various social entities to enter the market on the basis of promoting price separation and exiting the policy city. However, it is difficult to cultivate a diversified collection and storage entity to enter the market because the grain purchase requires a lot of money. In addition, it is necessary to adjust the planting structure, form a reasonable production layout, and develop varieties that are marketable.
What can the corn market reforms do after the cancellation of the deposit?
This year is the year to cancel the corn storage system, and it is also the key time for the marketization reform of corn purchase. The author believes that the corn market reform is not simply to cancel the temporary collection and storage, but to promote the enthusiasm of various social entities to enter the market on the basis of promoting the separation of prices and exiting the policy city.
In the northeast, in the early stage of the autumn grain purchase, farmers “difficult to sell grain” and corn prices fell sharply. At present, grain storage enterprises have experienced “difficult foreign transportation” and corn prices have risen slightly. As the domestic corn market is still oversupply, coupled with the cancellation of the temporary purchasing and storage policy this year, in the long run, corn prices are inevitable compared to last year's decline. However, at present, as the temperature gradually decreases, the difficulty of drying is increased, and the transportation is affected by the rain and snow, causing the price to rise in the short term. Between the ups and downs, the farmers are in a dilemma.
From the upstream and downstream of the industry, it is also a dilemma. After the cancellation of the temporary storage system, the price of corn continued to decline, and the enthusiasm of farmers was affected to some extent, especially for some large households. However, it is beneficial to aquaculture enterprises and deep processing enterprises, and improves the overall competitiveness of the industry chain. The province of Sichuan, the province of animal husbandry, is the beneficiary of the acquisition of the New Deal, and the cost of feed for farmed farmers has dropped significantly. The corn deep processing industry has also benefited a lot from destocking, and overcapacity has been alleviated.
From the perspective of regulation and control, it faces the dilemma of food security. The price of food is connected to the producer at one end and to the consumer at one end. At present, the overall food security is still tight. The purpose of price reform is to ensure food security in accordance with market rules. First, to maintain a basic balance between food supply and demand, corn stocks can no longer increase rapidly; second, to prevent farmers' incomes from falling sharply after the food supply is loosened, and production cannot fall sharply. At present, the price of corn in Northeast China has been almost the same as the price of imported corn, and it has been internationally competitive for many years. From this point of view, the regulation has achieved initial results.
The ultimate goal of price separation is to let the market determine the price. To solve the dilemma in the reform, we must first improve the diversified market entities, that is, reasonable acquisition channels. In 2004, the relevant departments proposed to completely liberalize the price of food. However, with the continuous increase in the price of temporary storage, only the middle grain storage company was acquiring, and the fact that private enterprises have withdrawn from the market. There is no problem with the current cancellation of the temporary storage policy, but it is difficult to actively cultivate a diversified storage and storage entity to enter the market, because the grain purchase requires a lot of money. State-owned acquisition entities have financial guarantees, while other entities are more difficult to obtain protection. The price rises and falls is the law of the market, but the difficulty of selling grain should never happen.
Secondly, there must be a reasonable production layout, which requires adjustment of the planting structure. China's corn cultivation is spread from southwest to north China to the northeast, and the sales of products are relatively concentrated. In the United States, agricultural cultivation is divided into corn belts, cotton belts, and dairy belts, and rarely fight each other. There is an internationally recognized golden corn belt for corn cultivation. In the context of high corn production and high stocks, it is necessary to maintain stable corn planting income in the dominant producing areas. For non-advantageous areas, subsidies for other crops can be subsidized. In the long run, non-dominant areas are still to find suitable crops suitable for the local, and appropriately develop vegetables, forest fruits, potatoes and so on.
For the corn-producing areas, we cannot rely on subsidies of one to two hundred yuan per mu, but also develop varieties that are marketable. At present, the demand for grain corn has shrunk, and the proportion of silage corn and fresh corn has increased. Taking fresh corn as an example, with the development of urban agriculture, all kinds of fruit corn are popular among consumers, and the price is much higher than ordinary corn. Whole-plant silage corn is also welcomed by large-scale farmers, and the market price is good. This kind of market demand is just the navigation light for the adjustment of corn structure in the future.
(Original title: Corn price reform can not stop at the temporary storage)

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