After a Grain Harvest Disaster, Who Will Ease the Farmers' Worries?
“When people are diligent, heaven helps, and joy overflows through the skylight”; “when people are diligent but meet natural disaster, there is nowhere to pour out their grief.” From ancient times to the present, “relying on heaven for the harvest” seems to be an insurmountable obstacle for grain farmers. Even in today's highly developed science and technology, people still cannot escape the harassment of natural disasters.
Against the backdrop of our country's grain production increasing for “eleven consecutive years,” although national summer grain production has risen steadily like a sesame stalk shooting upward, reaching the excellent situation of “twelve consecutive years” of increase, disasters in some provinces have left tens of millions of grain farmers wanting to cry but with no tears?
In several southern provinces such as Anhui Province, Hubei Province, Jiangsu Province and southern Henan Province, from the growing period to the maturity period, much wheat was hit by rainy weather disasters, and the proportion of unsound kernels increased sharply, failing to meet national standards and making it impossible to sell at the minimum purchase price. In Funan County, Anhui, 70% of wheat became unsalable. In Tanghe, Henan Province, one jin of wheat sold for only eight or nine mao. In mid-July, in southern Henan, Jiangsu and central Anhui, and Hubei, the quality of new wheat was relatively poor, unsound kernels were generally high, test weight was mostly 740-770 grams per liter, moisture was mostly 13-14%, and the purchase price was around 1.1 yuan, down about 0.01-0.03 per jin from the price at the beginning of the month, and there was still a trend of further decline.
Faced with newly harvested wheat that encountered consecutive overcast and rainy days, the problem of “difficulty in selling grain” troubled hardworking grain farmers. To solve the “difficulty in selling grain” of disaster-stricken farmers, efforts should be made from multiple sides.
The Government Steps Forward
Farmers are the cornerstone of the government, and the government is the protector of farmers' interests.
In our country, grain, the most fundamental food on which the people depend for survival and development, is produced by millions of honest and simple farmers. During the period of the planned economy, the state purchased grain produced by farmers at low prices under unified purchase and unified sale, and farmers lost nearly more than 500 billion yuan in income because of this.
After reform and opening up and the diversification of grain purchase and sale, in order to protect the interests of grain farmers, the state implemented a minimum grain purchase price policy in major grain-producing areas. In 2015, the minimum purchase price of medium wheat was 1.18 yuan per market jin. When newly harvested wheat comes on the market, if the market price is lower than the minimum purchase price, the state purchases it at the minimum purchase price; when the market price is higher than the minimum purchase price, it is sold according to the market.
It should be pointed out that wheat purchased according to the minimum purchase price is wheat that meets national quality standards. As for wheat hit by rainy disasters, with unsound kernels seriously exceeding the standard, under this year's regulations wheat with unsound kernels exceeding 10% cannot be purchased at the minimum purchase price.
When natural disasters cause wheat quality to fail to meet national quality standards, and in the face of high national grain reserves and cheap imported grain, the state cannot purchase it, processing enterprises dare not purchase it, and trading enterprises dare not get involved. No one will buy it, and farmers can only “look at the wheat and sigh”!
Faced with such a situation, the only one that can provide help to farmers is the government. We are pleased to see that recently the Anhui Provincial People's Government issued policy measures to protect the interests of wheat farmers who suffered losses.
The Anhui Provincial People's Government decided to launch provincial-level temporary wheat purchasing and storage. The scope of provincial-level temporary wheat purchasing and storage is key counties (cities, districts) in 8 major producing cities: Bozhou, Fuyang, Suzhou, Bengbu, Lu'an, Chuzhou, Huainan and Huaibei. For wheat that meets quality standards, the national minimum purchase price plan is still strictly implemented; for wheat with unsound kernels within 20% and test weight not lower than 710 grams (710 grams per liter), the provincial-level temporary purchase price is 1.1 yuan per jin.
Insurance Reduces Losses
“Storms gather without warning” is an unchangeable natural law. Agricultural production, especially grain production, is frequently affected by natural disasters. Especially under today's circumstances of environmental damage, natural disasters occur frequently and often.
In our vast country, different natural disasters occur in different regions every year. For farmers engaged in grain production, although they can avoid some small natural disasters, they are powerless against major irresistible natural disasters.
When natural disasters occur, government help is necessary. However, in the long run, a social security mechanism for disaster-stricken farmers still needs to be established.
Judging from the practices of developed countries and our country in recent years, agricultural insurance is a very good choice. At present, our country's agricultural insurance research covers major crops such as wheat, rice and corn. Farmers hit by natural disasters have received a certain amount of compensation.
Compared with actual agricultural production input, our country's crop insurance still appears insufficient. This is mainly shown in: the insured amount is too low, the claims procedure is complicated, and the compensation amount is too small.
For agricultural production insurance with low income and high payout ratios, the state should provide preferential policies. In this regard, the American approach can be used for reference.
American agricultural insurance consists of two parts: catastrophic insurance and additional insurance. Catastrophic insurance is compulsory insurance. Catastrophic insurance provides protection equal to 50% of average yield; below this protection level, compensation equal to 55% of the market price of that crop can be obtained. Additional risk insurance is voluntary insurance and requires the policyholder to purchase it separately. The maximum insured yield can be 85% of average yield, and the maximum compensation can reach 100% of market price. In addition, regional risk insurance can also be purchased. Its characteristic is that it uses the average yield of the insured region as the benchmark; when the yield is lower than the insured yield, the insurance company compensates, without considering the individual yield situation of insured farmers in that region.
American agricultural insurance supports commercial insurance companies through direct fiscal subsidies, tax preferences and reinsurance. Direct fiscal subsidies are business subsidies for the operation and management of commercial insurance companies, generally 18.5% of premiums. Tax preferences mean that the federal government and state governments exempt commercial insurance companies engaged in agricultural insurance from all other taxes except a 1%-4% business tax. Reinsurance means providing a certain proportion of reinsurance protection for commercial insurance companies operating agricultural insurance, with the excess portion purchased by commercial insurance companies through the reinsurance market. In addition, by establishing a risk-sharing mechanism with commercial insurance companies, the US government shares the benefits of the insurance market, further stimulating the enthusiasm of insurance companies to carry out agricultural insurance business.
Only by improving our country's agricultural insurance system and safeguarding agricultural returns can farmers' returns from producing agricultural products, especially grain, be guaranteed, and can their enthusiasm for production continue.
Rescue from Multiple Sides
Although grain products affected by natural disasters cannot be purchased as standard products stipulated by the state, they are not completely without use value.
As enterprises engaged in grain processing, feed, breeding and trade that survive and develop because of grain products, when the grain produced by farmers suffers losses, they should proactively extend a helping hand.
For flour processing enterprises, sorting equipment can be used to fully sort wheat with unsound kernels exceeding the standard. During processing, by using blending processing methods and dilution, the flour produced can still meet edible requirements.
Wheat with unsound kernels exceeding the standard that cannot be used as food grain can, as long as fungal toxins do not exceed the standard, be fully used as feed. Feed processing enterprises and breeding enterprises should also actively help farmers solve their worries.
Grain trading enterprises that connect production and sales should make full use of the advantages of well-informed information and extensive channels, and according to the consumption needs of different regions, sell wheat with unsound kernels exceeding the standard to places where it is needed. This can not only meet diversified demand, but also relieve farmers' worries, and can also obtain certain economic benefits.