“Policy City” to “Market City” Beware of “Selling Food”

[China Agricultural Machinery Industry News] With the implementation of price-separation policies for soybeans, corn and other crops, agricultural experts said that the next step is to guard against the “difficulty in selling grain”. From the "policy market" to the "market market", the grain market needs the government to formulate relevant supporting policies. At the same time, it must strictly avoid the "long-term" of the phased policies and the "mechanization" of the emergency policies. At the same time, we should give full play to China's grain futures. The function of the market.
“Policy City” to “Market City” Beware of “Selling Food”
Separation of prices has already taken precedence in the soybean policy. Soybean prices in the hands of many growers have so far been difficult to sell due to the continued decline in soybean prices and the impact of imported soybeans. In the courtyard of the Zihe Village Committee of Erjing Town, Qianjin Township, Bei'an City, the reporter saw that the woven bags filled with soybeans were neatly arranged. Yan Zhongjie, secretary of the village party branch, told reporters that more than 6,000 mu of soybeans were planted in the village last year and have not been sold until now. "At this time of the past year, almost all of them were sold out. Now, you have not received it. As the weather gets warmer, it is easy to break."
According to Wang Deyou, director of the Agricultural Technology Promotion Center of Bei'an Agricultural Bureau, last year, the city's soybean planting area was close to 1.6 million mu, and the new business entity produced more than 220,000 tons. So far, more than one-third of soybeans have not been sold. Soybean can not be realized, resulting in a decline in the ability of new business entities to raise funds for spring farming.
The price-separation separation of corn is similar to the soybean target price policy. Jiang Heping said that the next step is to prevent the "difficulties of selling grain." From the "policy market" to the "market market", the grain market needs the government to formulate relevant supporting policies, give producers and consumers corresponding support, and at the same time strictly avoid the "long-term" of phased policies and the "mechanization" of emergency policies. , causing "policy" to replace "market" again.
Under the influence of the policy of the city, the function of China's grain futures market has not been fully exerted. Jiang Heping suggested that after the price returns to the market, the company can adopt a combination of futures operation and risk control methods, and participate in the combination of futures warehouse receipts, spot value preservation and inventory futures value-for-money and futures to resist price fluctuation risks. At the same time, we can also learn from foreign experience and explore the use of agricultural product futures prices and volatility indices to develop new agricultural product target price insurance products.
(Original title: Agricultural experts: Introduce supporting policies to guard against "selling food hard")

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