What money-making business opportunities will the 2016 agricultural reform bring?

2015 has entered its final month. During 2015, agriculture underwent a series of major changes one after another, kicking off the transition from traditional agriculture to modern agriculture! And in the upcoming 2016, agriculture will continue the reform direction of 2015 and carry the reform through to the end! In this reform process, modern agriculture will undoubtedly see major business opportunities emerge!

Cuncun: What agricultural reforms will be the focus in 2016? What major policies will the state release? What major impact will they have on our agricultural operating entities——cooperatives, family farms, agricultural enterprises and even individual farmers? What major agricultural money-making opportunities will there be in 2016?

I. Reform of state-owned farms (agricultural reclamation), unleashing a big wave of land dividends!

The 2015 No. 1 Document clearly mentioned reforming state-owned farms (the agricultural reclamation system), aiming to give play to the unique advantages of agricultural reclamation and actively cultivate large-scale agricultural operating entities. And not long ago, the State Council issued a document making a series of arrangements on major issues such as how reclamation areas should be reformed, how farms should be reformed, and how the personnel, asset and land management systems and mechanisms should be handled. This means the state is about to begin comprehensive action on agricultural reclamation reform!

★Opportunity 1: Agricultural reclamation reform is bound to release a large amount of land dividends, which is undoubtedly a favorable signal for agricultural entities operating at scale.

★Opportunity 2: The document proposed that collectivization is the leading direction of reclamation area reform, focusing on building modern agricultural enterprise groups. For some state-owned farms and state-owned agricultural enterprises, they will undoubtedly become key cultivation targets and will also enter a critical period of transformation.

II. Major reform of cooperatives, which will gain greater policy benefits!

The difficulty of selling grain has become almost the focus of attention for everyone in agriculture. In addition to the state's adjustment of purchasing and storage policies, the more fundamental question is: why is grain hard to sell? What should we do? From the problem of difficulty in selling grain, we can see that traditional individual farmer-style agricultural production has low risk resistance and cannot adapt to the changing market supply and demand. Only by joining forces can we seize market opportunities first. And cooperatives are undoubtedly the best choice!

★Opportunity 1: In May 2015, the state issued a policy merging the subsidy for improved crop varieties, direct subsidies to grain farmers and comprehensive subsidies for agricultural inputs into “agricultural support and protection subsidies,” focusing on supporting farmland fertility protection and appropriately scaled grain operations. For cooperatives and other scale-operating entities, this is a major policy dividend!

★Opportunity 2: At the Fifth Plenary Session of the 18th Central Committee, President Xi proposed that one of the major goals of the “13th Five-Year Plan” is poverty alleviation. Who will do the alleviating? How will it be done? In the end, it is still necessary to give play to the leading role of entities, develop industries, and drive the overall development of regions. This means that in industrial development and its driving role, more policies and dividends will be granted to operating entities.

III. Reform of agricultural enterprises and family farms, clarifying positioning and coordinating development!

For agricultural enterprises and family farm operating entities, how to maximize effectiveness and how to quickly find a development model is crucial. Many enterprises have already formed a “base + farmers” model and achieved good results. As a result, a form in which family farms serve as production entities and enterprises operate the market has become relatively common. Then, in 2016, the state will also issue corresponding policies to more clearly divide functions for this type of entity and will also issue corresponding policy support.

IV. Reform in the field, setting off a new round of explosive money-making opportunities!

★Opportunity 1: Agricultural real estate! In poverty alleviation policy, relocation is a major measure. This means there will be more housing and real estate construction; at the same time, as agricultural industries develop, investment in rural infrastructure will continue to increase, and agricultural real estate will usher in unprecedented major business opportunities!

★Opportunity 2: Ecological agriculture! Green, ecological and sustainable will become the theme of 2016. The state has already issued multiple policies to strongly support ecological agriculture, and in the direction of ecological development in 2016, two areas can be watched:

① Ecological planting and breeding, including straw recovery, manure recycling, green and environmentally friendly planting and breeding, etc.;

② Ecological leisure, namely creative agriculture combined with natural ecological and environmental protection, will receive major government support and is also expected to become a key supported project with county-level characteristics.

V. Suppliers of high-efficiency agricultural inputs and microbial bacterial fertilizer

Because our country's agriculture has long used chemical fertilizers in large quantities and dependently, it has “fed” our originally healthy and fertile land into compaction, acidification, salinization and fertility exhaustion, and the degree of deterioration is shocking! Soil pollution, water pollution, air pollution and various diseases are appallingly severe! The “chaos” that farmers feel deeply, such as “increasing fertilizer use does not increase yield” or even “the more fertilizer used, the lower the yield,” serious exceedance of heavy metals in agricultural products, deteriorating quality, difficulty in selling, and low efficiency, has become a common phenomenon. The soil crisis and agricultural crisis have sounded the alarm for our country's food security, food safety and even the sustainable development of the national economy!

In 2015 the state implemented an action to reduce agricultural chemical fertilizer application, advocating the use of high-efficiency agricultural input products, microbial bacterial fertilizer and organic fertilizer, etc.

★Opportunity 1: Whether fertilizer producers or distributors, all are turning to high-efficiency agricultural input products. So-called high-efficiency inputs are: higher product utilization rate, higher technology, higher yield increase, and higher benefits brought to farmers!

★Opportunity 2: The era of microbial bacterial fertilizer has arrived!

Strictly speaking, microbial bacterial fertilizer is not a crop soil fertilizer, but in terms of its functional significance, microbial bacteria are the soil's “good chef,” “nutritionist” and “cleaner”! They can not only solve problems such as soil compaction, acidification, salinization, fertility exhaustion, soil pollution, water pollution and air pollution, but also prevent various diseases, increase crop yields, and reduce the amount of base fertilizer applied!