First day of northeast corn temporary storage purchase: grain prices lowered, farmers reluctant to sell
Grain prices lowered, farmers “reluctant to sell and waiting to see”——northeast corn temporary storage purchase launch first day observations
On the 1st, the three northeast provinces launched the 2015 state temporary storage corn purchase policy. At some purchase depots, reporters saw that autumn grain purchase funds were already in place, and not many farmers had yet come to sell corn. Because the corn temporary storage price was lowered, farmers' income from selling grain decreased, and the price orientation accelerated the adjustment of the planting structure.
Corn purchase on the first day of launch slightly quiet
The northeast corn harvest is nearing its end. Lanshi County Grain Depot Co., Ltd. in Heilongjiang Province is an entrusted purchase depot of the Zhaodong Directly Subordinate Depot of Sinograin. At this depot, reporters saw that 1 large truck fully loaded with corn was unloading grain, and not far away golden corn was piled into a “small mountain”. After quality inspection, weighing and other procedures, grain broker Li Guoan took the documents to the settlement center. The settlement clerk took the documents and bank card, tapped the keyboard, and transferred the money into Li Guoan's account.
Starting November 1, the three northeast provinces and the Inner Mongolia Autonomous Region officially launched the 2015 state temporary storage corn purchase policy, ending on April 30, 2016. Compared with last year, this year's temporary storage corn purchase policy was launched about 1 month earlier, while the end time remained unchanged.
Changtu County, Tieling City, Liaoning Province, is a major national corn planting county. On the first day of the launch of the corn temporary storage price, reporters came to the Changtu Directly Subordinate Depot of China Grain Reserves located in this county. Two 2015 state temporary storage corn purchase quality and price policy announcement boards had already been hung outside, among which clear requirements were set for purchase price, test weight, moisture and so on. However, no farmers or grain brokers were seen coming to sell grain, and the temporary storage purchase site was slightly quiet.
The Guanfeng Agricultural Machinery Planting Professional Cooperative in Baicheng City, Jilin Province, planted 183 hectares of corn, which has now been fully harvested, and the courtyard is filled with corn. Cooperative chairman Zhang Fenggang said that this year the state launched the corn temporary storage price early, and the maximum temperature is still above zero degrees Celsius, so if the corn is threshed it is easily broken, so ordinary people are not in a hurry to sell corn.
Preliminary yield estimates by the agricultural department of Jilin Province show that this year the province's total grain output is better than in ordinary years and better than last year. Based on the adjustment of the state policy-based grain purchase policy and analysis of the current grain market situation, Sinograin Heilongjiang Branch estimates that Heilongjiang Province's state temporary storage corn purchase volume will be 22 million tons—27 million tons.
Temporary storage price lowered, farmers have worries despite a bumper harvest
The corn temporary storage price, which had been continuously raised for many years, was lowered this year, causing farmers' income from selling grain to decline to varying degrees. This year Jilin Province's temporary storage corn purchase price was reduced by 0.12 yuan/jin compared with the previous year. If calculated according to Jilin Province's 2014 corn yield of 985.9 jin per mu, grain-growing farmers this year will have their income reduced by 118.3 yuan per mu.
Zhao Huanhai, a major grain grower in Chaoyangpo Village, Chaoyangpo Town, Gongzhuling City, Jilin Province, who operates 750 mu of corn land, looked worried when meeting reporters: “This year each mu yielded more than 1,600 jin of corn, similar to last year, but corn prices fell, so income per mu is more than 100 yuan less.” Zhao Huanhai said that at the beginning of this year the land transfer fee per mu rose by 100 yuan, and “now it looks like being able to break even would already be good.”
Data from the agricultural department of Siping City, Jilin Province, show that this year Siping City's (including Gongzhuling City) total corn output is around 15 billion jin. Affected by factors such as the lowering of the state corn temporary storage price, farmers' grain-growing income for the year will decrease by more than 1 billion yuan.
Chen Libin, a major grain grower in Qujiadian Town, Changtu County, Liaoning Province, harvested about 4,200 tons of corn this year. He calculated an account for reporters: the comprehensive cost per mu of corn he operates is 1,100 yuan, including 700 yuan in land rent paid to farmers and 400 yuan in other operating costs; this year the average yield per mu is 1,400 jin. Compared with last year, this year the corn temporary storage price has been lowered, and quality requirements such as the mold rate have been raised, squeezing profit margins. On the first day of temporary storage, farmers were all “reluctant to sell and waiting to see”.
In Heilongjiang, China's largest grain-producing province, the listed purchase price for state temporary storage corn is 1 yuan per market jin for standard goods, 0.11 yuan per market jin lower than last year. The lowering of the temporary storage price has given new type business entities plans to reduce the area planted with field crops. Li Deming, chairman of the Zhenyu Corn Professional Cooperative in Lanshi County, Heilongjiang Province, said that this year more than 3,000 mu of corn were planted, the price is on the low side, and after deducting various costs it merely breaks even. He originally planned to expand the area of transferred land, but faced with the current price situation, he had to give up this idea.
Autumn grain purchase funds guaranteed, preventing “IOUs”
In response to the new situation in autumn grain purchase such as this year's downward grain prices, Jilin Province made arrangements in advance, requiring that farmers be allowed to sell grain as close to home as possible to reduce transport costs. This year the number of purchase depots in Jilin is no lower than last year, and major producing cities and counties have ensured at least one depot per township, with depots arranged in place in one go.
Jilin Province also required strengthening policy publicity, improving services such as farmers' courtyard grain storage and convenience services by purchasing and storage enterprises, and strengthening supervision and inspection and safe production work. It will further do a good job in grain circulation, strengthen production and sales cooperation, play the “grain and beans card” well, expand “grain bank” pilots, and advance agricultural structural adjustment. It is reported that this year Jilin Province will complete the task of building 10 billion jin of warehouse capacity, and total warehouse capacity will reach 67 billion jin.
In terms of funds, this year's grain purchase funds are generally guaranteed. Reporters learned from the Heilongjiang Provincial Branch of the Agricultural Development Bank of China that the branch has raised 140 billion yuan to ensure the timely and full supply of credit funds for autumn grain purchase, preventing enterprises from issuing “IOUs” and farmers from “difficulty in selling grain”.
Li Jun, deputy governor of the Heilongjiang Provincial Branch of the Agricultural Development Bank of China, said that this year Heilongjiang has another bumper harvest year, and the funds raised by the Agricultural Development Bank will promptly guarantee Heilongjiang's policy-based grain purchase and storage, ensure that for the autumn harvest “money waits for grain”, and ensure that after a bumper harvest farmers do not encounter “difficulty in selling grain”.