Where are the profitable paths for agriculture in 2016?

Before we know it, 2015 is almost over. At the end of every year, this should be a time of harvest and joy, but affected by unfavorable conditions such as the recent drop in grain prices and unsold agricultural products, people's spirits are always hard to lift. Many friends feel that making money in agriculture is difficult. Some friends who have transitioned into agriculture, because they do not understand agriculture and have never done it, do not know where to start, so they feel difficulties everywhere; many friends who have long been in agriculture also let out the same sigh. This cannot help but make one ask: is making money in agriculture really this difficult?

Zhao Caishen of the Nonghe Forum says:

Modern agriculture is different from traditional agriculture. The state is now vigorously pushing forward agricultural reform, which is precisely to comprehensively advance the development of modern agriculture. If you still run agriculture with the old traditional mindset, you will certainly not make money, and may even lose money.

So, what kind of thinking should be used to develop modern agriculture? When grain prices are falling and agricultural operations are struggling, how can agriculture break through and become profitable?

Path one: Industrial opportunities of market + policy

Choosing an industry in agriculture is very important. Especially for people who have just entered agriculture, what industry project to choose is crucial. Not only must you consider the local climate and environment, soil and hydrology, but more importantly market supply and demand, and at the same time you must also consider relevant national and regional policies. This means that future profitability in agricultural industries will have the following opportunities:

Opportunity 1: Market-determined type. Future industry development is not about seeing what others grow (or raise) that is hot and then following along to grow (or raise) the same thing to make money; rather, it is precisely special categories that will have the advantage, or products that form a unique brand that will have a larger market.

Opportunity 2: Policy-encouraged type. When the state issues policies, there will be two situations: one is to regulate the balance of supply and demand, and the other is to facilitate the comprehensive advancement of modern agriculture. That is to say, engaging in this kind of project means the policy support and subsidy funds available will be greater.

Path two: Opportunities from upgrading traditional agriculture

Starting in 2013, agricultural reform kicked off. In the past two years, agricultural reform has mainly had two major aspects: one is the upgrading of traditional agriculture and the integration of the primary, secondary and tertiary industries to enhance agricultural profitability; the other is the entry of the internet into agriculture, giving rise to a market worth trillions.

Opportunity 1: Creative leisure agriculture. Leisure agriculture is the most common type in the integration of the three industries, and very many people engage in it, but often many people only discover after starting that making money in leisure agriculture is very difficult. This is because the profit point of leisure agriculture is not in leisure, but in creativity. Profit model + creative design is the real money-making point that attracts crowds to leisure agriculture.

Opportunity 2: Agricultural product e-commerce. Agricultural product e-commerce is not simply selling products through the internet; it emphasizes even more the personalization and uniqueness of products, which is the biggest feature of internet e-commerce. That is to say, the more unique a product is, the more it can stand out, which gives great imaginative space to agricultural product brands.

Path three: The “group” opportunity of driving development

Many people transfer land, hire farmers, and carry out production and industry, and it looks as if things are booming. But often the farmers do not work enthusiastically, and sometimes they may even cause trouble. And policies often will not give you priority. Why? Because what the state encourages is to drive surrounding farmers to get rich together!

Opportunity 1: Cooperatives will receive more support. As a new type of agricultural operating entity, cooperatives have always played an important role in driving farmers to prosperity. The state will issue more policies in the future to vigorously encourage cooperative development, including benefits in taxation, subsidies and other aspects.

Opportunity 2: The “enterprise + farmer” form is more favored by policy. As an agricultural enterprise, how to get along well with farmers and how to obtain government support and subsidy funds with more advantage, the “enterprise + farmer” business model is undoubtedly more favorable.