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Modern agricultural development also requires capital operation

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Agriculture also requires capital operation
(Agricultural Wealth Network)    With the development of the market economy, a buyer's market for agricultural products has become an established fact. This has brought enormous impact to traditional agricultural production and is also a severe test for the rural industrial structure adjustment currently in full swing across various regions, to the point that farmers in many places have begun to worry about "what to plant" and "how much to plant." The author believes that to solve the problems emerging under this new situation, we must start from the laws of the market economy and do a good job in capital operation within agriculture. 

    Capital operation is not unfathomable or difficult to grasp; it has three prominent characteristics: First, capital flows toward high efficiency. "Profit maximization" is the primary characteristic of capital operation, as no commodity operator fails to pursue economic benefit as the ultimate goal; second, factors are optimally combined, with laborers, production tools and objects of labor best matched and each in its proper place; third, only through movement can value be increased, and the faster the flow, the greater the increase.

    Simply comparing this, it is obvious that our current agricultural production still remains at the level of extensive operation. First, high efficiency is out of the question. It cannot compete in quality with superior foreign crops, and production costs are far higher than those of the international market, so it cannot compete in price with imported agricultural products. One set of data shows that the domestic wheat price is 75% higher than the international market, corn 63% higher, soybean oil 117% higher, and peanut oil 31% higher. Under such circumstances, it is naturally not surprising that it is eliminated by the increasingly fierce market competition. Second, optimal combination is out of the question. Some laborers with not particularly high educational levels operate simple tools, working from sunrise to sunset, and what they get in return can only be limited output from the land; at the same time, the low technological content of labor tools, aging varieties and frequent disasters mean that agriculture, which people always pay close attention to, can never jump out of the "swamp" of weak quality and low efficiency. Third, agricultural capital turns over slowly, and there is a lack of leading enterprises for deep processing and fine processing. The grain produced cannot be converted on the spot in a timely manner, and as a result this can only intensify the increasingly prominent contradiction of grain surplus, with the phenomenon of "output increasing without income increasing" becoming more and more common.

    So how can capital operation be done well? A group of farmers with relatively high scientific, technological and educational levels have made beneficial attempts in this regard: some actively study the "Handan Steel" experience, reducing production costs to obtain the greatest returns with the smallest input; some make full use of seasonal or regional price differences to accurately identify market selling points, injecting a scientific and technological element into their thinking. As a result, the land is still the same land and the people are still the same people, but the combined effect of the factors is extraordinary. Techniques such as grafting, formula fertilization and soilless transplanting have turned "yellow earth" into "gold." And so on; such examples are too numerous to list.

    Of course, the difficulty of comprehensively promoting capital operation in rural China, where farmers account for more than 80%, is obvious. But as long as we put people first, pay attention to improving the scientific, technological and educational levels of the broad masses of farmers, arm farmers with more knowledge, inspire farmers with more practical examples, and achieve an organic combination of software such as knowledge, information and science and technology with hardware such as land and labor tools, we have every reason to believe that capital operation will surely blossom and bear fruit across the vast countryside, and that increasing agricultural efficiency and raising farmers' incomes will no longer become a "moon in the water" or a "flower in the mirror."

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