How can we fundamentally cure the problem of cheap grain hurting farmers? A new prescription is needed
Recently, corn prices in some places have fallen sharply, and some farmers' income from selling grain has thus decreased. “Cheap grain hurting farmers” has once again become a focus of social attention. To fundamentally cure this “old problem” of cheap grain hurting farmers, we should apply a market-oriented and international perspective and prescribe targeted new remedies.
To protect farmers' income from growing grain, in recent years China's policy-based grain purchase prices, such as the temporary storage price for corn and the minimum purchase prices for rice and wheat, have risen steadily, which has also driven grain market prices up year by year, and farmers' income from growing grain has increased accordingly. But “expensive grain” has also induced a series of problems. For example, when grain prices rise, market demand is not strong, and large amounts of grain enter state reserves, increasing the pressure on grain inventories and increasing state fiscal subsidies; grain processing enterprises face higher costs and lower benefits, and even fall into industry-wide losses; domestic and international grain prices are inverted, and the international competitiveness of China's grain processing and food processing industries declines, and so on.
This year's No. 1 Central Document pointed out that China's economic development has now entered a new normal, and is shifting from high-speed growth to medium-to-high-speed growth. How to continue strengthening the foundational position of agriculture and promote sustained increases in farmers' income against the backdrop of slowing economic growth is a major issue that all localities must solve.
To prevent cheap grain from hurting farmers, the scope of pilot reforms for the target price policy should be expanded to ensure that while grain prices fall, farmers' income from growing grain is not affected. We can draw on the experience of target price reforms for cotton and soybeans in Xinjiang, Northeast China and other places, gradually implement a target price system for corn and rice, and scientifically set target prices for agricultural products that safeguard farmers' reasonable income. When market prices fall below the target price, the state treasury subsidizes the difference, truly achieving “cheap grain does not hurt farmers”.
To prevent cheap grain from hurting farmers, we should also develop income-increasing space in the secondary and tertiary agricultural industries and promote the integrated development of the primary, secondary and tertiary industries in rural areas. Extend the agricultural industry chain, increase agricultural added value, develop the multiple functions of agriculture, and fully tap the value of rural ecological leisure and folk culture.
To prevent cheap grain from hurting farmers, while increasing farmers' operating income, we can also broaden the channels for farmers to increase income. We should accelerate rural property rights reform to increase farmers' property income; encourage going out to work to increase farmers' wage income; and increase state support in areas such as elderly care, medical care and education to increase farmers' transfer income.
To prevent cheap grain from hurting farmers, we should also promote the expansion of mass entrepreneurship and innovation to agriculture, rural areas and farmers, and guide capable and experienced migrant workers to return home to start businesses. Optimize the rural development environment, reduce the cost of entrepreneurship, and let agriculture, rural areas and farmers become a new stage and new main force for mass entrepreneurship and innovation.