New grain hits the market with prices steady to slightly higher, farmers actively selling

Wang Chengqiang, Li Lei, Chu Ruizhen, Ma Kuiyu

Survey date: Thursday, September 25, 2014

Survey route: Day two: Hegang——Fujin, survey areas include Baoquanling Management Bureau, Gongqing Farm, Junchuan Farm, Suibin Farm, Mingshan Farm, Puyang Farm and other farms; overnight stay in Fujin

Survey targets and content: large grain-growing households on agricultural reclamation farms, purchasing enterprises, etc.; content covers crop growth conditions, planting structure and costs.

I. Crops awaiting autumn harvest show excellent growth

Table 1, Soybean measurement data

Figure 1. A soybean field in Hegang overgrown with weeds

The soybean fields we could see were mostly smallholder plots, poorly managed and largely overgrown with weeds. A large grower surnamed Liu from Mingshan Farm said that on the road from Mingshan to Junchuan, there was scattered soybean planting on the north side, mostly smallholder plots for personal use rather than commercial sale; on the south side, the farms planted no soybeans at all, having grown the more profitable corn for many years, drawn by the returns.

Table 2, Corn measurement data

II. Abundant new grain hits the market, farmers actively selling

Enterprise surveyed: Baoquanling Shanlin Grain Processing Co., Ltd.

The company operates a corn collection and storage warehouse with a storage capacity of 130,000 tons, and two drying towers, one with a drying capacity of 500 tons per day and the other 300 tons per day. Of the corn purchased last year, 50,000 tons were converted to temporary storage, and the trade operation volume was 370,000 tons. At present, 10,000 tons of old-crop corn remain in inventory, and the rest of the temporary-storage corn has been transferred to warehouses and shipped south.

According to General Manager Lin, the vast majority of surrounding areas grow corn, and soybeans are planted only when corn cannot be sown. The main corn variety is Demeiya No. 3, and only in mountainous areas with insufficient accumulated temperature is Demeiya No. 1 chosen for planting. Because Demeiya No. 3 has relatively large kernels and is a semi-flint corn, feed mills have begun to accept this variety, but it still trades at a 40 yuan discount to Jilin corn. The corn output in surrounding areas is expected to be a bumper harvest this year, with good plots expected to yield 15 tons per hao (wet grain). At the same time, grain quality is relatively good, with moisture and mold both better than in previous years; moisture content is 30%, and test weight above 685 reaches the Grade 2 grain standard.

The drying towers tend to use rice husks as fuel; compared with coal, rice husks can save 10 yuan per ton.

⟧ Corn purchasing has now been listed, and this year's opening price is 1600-1620 yuan per ton (at 30% moisture), equivalent on a dry basis to 2000-2030 yuan per ton at the standard 14.5% moisture (including a 60 yuan drying fee); it also purchases surrounding dry grain at a price of 2100 yuan per ton.

This year farmers are relatively active in selling grain; farms in particular must finish harvesting before October 25, and there is no habit of storing grain locally.

General Manager Lin is cautious and has no expectations regarding this year's temporary-storage support price. He is relatively optimistic about the later trend of corn prices, especially that good grain can fetch a good price.

Figure 2. Large piles of wet grain awaiting drying at the enterprise

III. Corn planting returns are stable, mechanized operations are highly efficient

Enterprise surveyed 1: Large grain-growing household at Baoquanling Mingshan Farm

The survey team gained a detailed understanding of planting costs and returns from the large grower surnamed Liu. This large grower contracts 40-50 hao of land, all planted with corn (Demeiya No. 3); because soybean planting is less profitable than corn, he began reducing soybean acreage 5 years ago. Yield is 12 tons per hao, and planting costs are flat versus last year, including 1200-1300 yuan for seed, 1500 yuan for fertilizer, 300 yuan for pesticides, 1500 yuan for machinery, 5000 yuan for land rent, plus other costs, for a total cost of 10500 yuan per hao. At the same time, planting one hao can obtain more than 800 yuan in land tax subsidies and 150 yuan in improved seed subsidies. This large grower owns a large harvester with threshing capability, with a harvesting speed of 2 hao (equivalent to 30 mu) per hour. At the same time, this large grower has no storage capacity; after agreeing on a price with traders, he immediately begins harvesting and selling to convert to cash, at a sale price of 1500 yuan per ton. It is preliminarily estimated that the return from planting corn is 7000-8000 yuan per ton.

Figure 3. Survey team talking with a large grower at a farm
 

Figure 4. Own advanced American-imported harvester at work

Enterprise surveyed 2: Junchuan Farm

At Junchuan Farm, 70% of crops are rice. According to the leaders of Junchuan Farm, this year's corn yield is 9-10 tons per hao, slightly worse than last year due to the impact of drought. Because large machinery is used for land preparation, planting costs are slightly higher than last year, with total costs estimated at 11000 yuan per hao, including 4380 yuan for land rent, 1000 yuan for seed, 1700 yuan for fertilizer, 300 yuan for pesticides, 1000 yuan for plowing, 700 yuan for harvesting, and other costs.

This year corn was sown on April 16, about a week earlier than last year, and the harvest time is relatively early, with moisture above 30%, at a price of 1500 yuan per hao, and it is expected to be fully harvested before October 1.