A long-term mechanism for compensating the interests of major grain-producing areas must be established without delay

In recent years, although the state has continuously increased support for production in major grain-producing areas, the problems of slow growth in the income of grain farmers and sluggish economic development in major producing areas still exist, affecting the enthusiasm of farmers for growing grain and of local governments for developing grain production. Under the new circumstances, safeguarding the grain production capacity of major producing areas and farmers' enthusiasm for growing grain is even more important. Conducting research on the interest compensation mechanism for major grain-producing areas and promoting the sustainable development of major grain-producing areas through the establishment of a long-term interest compensation mechanism is of great significance to safeguarding national food security.

Major grain-producing areas have made important contributions to national food security

In recent years, as grain production policies have continued to improve, the grain sown area in major grain-producing areas has continued to increase, and grain output in major grain-producing areas has continued to grow. In 2013, the grain crop sown area of the thirteen major grain-producing provinces accounted for 71.7% of the national total, and their grain output accounted for 76.0% of the national total; the grain sown area of the seven major grain-selling provinces accounted for 5.4% of the national total, and their grain output accounted for 5.5% of the national total. Major producing areas have made major contributions to our country's food security.

Existing grain support policies are not yet sufficient to meet the need for increasing farmers' income

(1) National grain support policies have done a good job of promoting grain production in major producing areas, but the efficiency of grain growing is relatively low. Since the reform and opening up, the proportion of grain output of major producing provinces has consistently been higher than their proportion of sown area, and in recent years the gap has gradually widened. In 2005 the gap was less than 1 percentage point, and by 2013 it had widened to more than 4 percentage points. National grain support policies have done a good job of promoting grain production, and the grain yield per unit area in major producing areas is higher than the national average. However, the added value of the primary industry in major grain-producing areas is lower than the national average. From 2001 to 2012, the added value of the primary industry in major producing areas accounted for 63-68% of the national total, consistently lower than their proportion of grain output, and after 2007 the gap widened further to 8-9 percentage points, indicating that the efficiency of grain growing in major grain-producing areas is relatively low.

(2) The net income from household business operations of farm households in major producing areas is an important source of farmers' income, but the contribution rate of subsidy income to income growth is lower than the national average, and grain-growing subsidies need to be further increased. Since 2001, the proportion of net income from household business operations of farm households in major producing areas in total income has been 3-5 percentage points higher than the national average, and its contribution rate to income growth has been notably higher than the national average, making it an important source of farmers' income. Major producing areas contribute greatly to national food security, but for many years the proportion of subsidy income obtained by major producing provinces has been lower than the national average, so grain-growing subsidies to major producing areas should be substantially increased.

(3) Large-scale operation is an important way for grain farmers to increase their income. The research group conducted a questionnaire survey on farmers' income in some areas of the three provinces of Liaoning, Jilin and Heilongjiang. The results show that: (1) Going out to work is not the main source of income for farm households. (2) The breeding industry is a supplement to farm households' grain-growing income. (3) Large-scale operation is an important way to increase farmers' income.

The greater the contribution major grain-producing areas make to national food security, the heavier the burden they bear

(1) The net profit from grain production has not increased significantly, and in some provinces it has even declined. In 2008, the average net profit per mu from staple grain production in the thirteen major producing provinces was 199.6 yuan per mu, rising only to 233.9 yuan in 2012, and then falling to 121.5 yuan in 2013.

(2) The gap between the net profit of cultivated land and that of state-owned construction land has widened year by year. In 2008, the difference between the net profit of cultivated land and that of state-owned construction land in the thirteen major producing provinces was 315,000 yuan per mu, widening to 518,000 yuan in 2011.

(3) The income level of farmers in major producing areas is far lower than that in major grain-selling areas. In 2013, among the thirteen major grain-producing provinces, only six provinces had a per capita net income of rural residents higher than the national average, while the other seven provinces and autonomous regions were below the national average. In the income composition of farmers in major grain-selling areas, the proportions of wage income, transfer income and property income were far higher than the proportions of the corresponding income items of farmers in major producing areas. The income level of farmers in major grain-selling areas is far higher than that of farmers in major producing areas, and agricultural production is no longer the first choice for farmers' income in major grain-selling areas.

(4) Major grain provinces are all financially poor provinces. Looking at the per capita fiscal revenue of major grain-producing areas over the past six years, except for Hubei, Liaoning and Inner Mongolia, whose per capita fiscal revenue was higher than the national average, the fiscal revenue of the remaining ten major producing provinces was below the national average. The fiscal situation of major grain-selling areas, however, is far better than that of major grain-producing areas, with the per capita fiscal revenue of all seven major grain-selling provinces higher than the national average.