Grain prices climb steadily, farmers eager to sell grain for cash to fund spring plowing

On the 25th, the Cost Supervision and Review Division of the Anshan Municipal Development and Reform Commission released the grain storage and sales situation of 29 agricultural survey households in Haicheng and Xiuyan: grain sown area was 276.37 mu, with an average sown area of 9.53 mu per household, and the grain varieties grown were mainly japonica rice and corn. As of April 1, compared with the same period last year, the average grain stock per household fell 5.53%, and the average amount of grain sold per household rose 3.6%; grain sales channels were still dominated by individual private grain traders making door-to-door purchases; current grain prices are climbing steadily, and after setting aside enough grain for their own consumption, farmers are eager to convert it into cash to prepare for spring plowing, mostly selling all their grain.

Data analysis shows that in 2014 the city's natural environment and climate were suitable for crop growth, and grain output increased significantly. This year the city focused on promoting key yield-increasing techniques such as centralized rice seedling raising and rational close planting, which raised japonica rice yields. The average japonica rice and corn output per household both increased over the previous year; although beans declined somewhat, their share of total grain output is small, so the impact on total grain output was limited, and total grain output still increased over the previous year. Because grain output rose, the amount of grain available to farmers and grain stocks also increased accordingly. Grain prices have kept climbing and have remained at a relatively high level, while most farmers lack storage and drying facilities, and some farmers are eager to go out to work, so their willingness to sell is strong.

Industry insiders revealed that this year all of the farmers' grain sales channels were purchases by individual vendors. The reason is that individual vendors have well-informed market information, set prices according to the market, pay cash on the spot, estimate prices by inspecting the grain, and use flexible and varied methods and ways of purchasing grain; some individual vendors set up purchasing points in rural areas to buy farmers' grain, and even buy grain directly at the edges of fields, so farmers find selling grain simpler in procedure and a saving of time and effort, making it very popular with farmers. Affected by market supply and demand, rising labor costs, and rising prices of agricultural inputs such as chemical fertilizers, pesticides and agricultural film, grain production costs rose considerably, but the state promptly announced the minimum purchase price for rice, effectively safeguarding farmers' interests. Most farmers considered the market price reasonable and the purchase price high, meeting their psychological expectations, so they sold most of their grain. As the weather warms, farmers in our city are beginning to prepare for spring plowing one after another, and it is expected that before spring sowing farmers will sell off the vast majority of their surplus grain to raise funds for spring plowing.

Relevant persons suggested that, with labor costs and agricultural input prices continuously rising and production costs constantly increasing, grain departments should reasonably raise the minimum grain purchase price. Grain subsidies should be tilted toward new types of agricultural business entities, toward large grain-growing households, and toward scaled operations; the subsidy distribution method should be improved, and subsidies should be linked to grain contributions, with more grain sold meaning more subsidy, and whoever grows grain receiving the subsidy. Through incremental increases in comprehensive agricultural input subsidy funds, the pressure that rising input prices place on farmers' production can be offset. Grain purchase and sales channels should be broadened; in particular, state-owned grain purchase and sales enterprises should change their grain purchasing methods, raise funds through multiple channels, broaden channels for purchasing grain, and change "purchasing while sitting in the warehouse" to "setting up points in villages" or "going from village to village and household to household" to make door-to-door purchases, strictly implement national grain and oil quality standards and purchase prices, increase the transparency of grain purchasing work, improve service levels, and seize grain sources. Farmers should choose high-quality, high-efficiency agricultural product varieties and promptly adjust their planting structure according to market changes. Agricultural technology extension departments should advance innovation in agricultural production, summarize and promote advanced planting techniques and experience, control the impact of natural disasters and pests and diseases on crops, and deeply advance the construction of modern agriculture demonstration zones and rural reform pilot zones.