Economy

Central Financial Office: Using a combination of policies to promote the stabilization and recovery of prices of agricultural products such as grain

2025-02-25   

On February 23, the Opinions of the Central Committee of the Communist Party of China and the State Council on Further Deepening Rural Reform and Firmly Promoting the Comprehensive Revitalization of Rural Areas (i.e. the No. 1 central document) was officially released. On February 24th, Han Wenxiu, Deputy Director in charge of daily work of the Central Finance Office and Director of the Central Agriculture Office, and Zhu Weidong, Deputy Director of the Central Finance Office and Deputy Director of the Central Agriculture Office, attended a press conference held by the State Council Information Office to introduce the relevant situation and answer questions from reporters. Han Wenxiu stated that in the past year, China has overcome significant adverse effects such as natural disasters and achieved remarkable results in the work related to agriculture, rural areas, and farmers. Currently, the development of agriculture, rural areas, and farmers in China presents many new trends and characteristics, facing many new situations and problems that require systematic planning and effective response. On the basis of stabilizing the overall pattern of the "three rural" work deployment, this year's No. 1 central document will deepen rural reform throughout the whole document. The overall framework can be summarized as "two sustainability and four efforts". The "two sustains" refer to continuously enhancing the supply guarantee capacity of important agricultural products such as food, and continuously consolidating and expanding the achievements of poverty alleviation. The "four focuses" are to focus on strengthening the industries that enrich the people in counties, promoting rural construction, improving the rural governance system, and improving the institutional mechanisms for ensuring and optimizing resource allocation. The abundant harvest of grain undoubtedly plays a crucial role in stabilizing prices, people's livelihoods, and the overall situation. Han Wenxiu said that this year, in order to continuously enhance the supply guarantee capacity of important agricultural products such as grain, we need to focus on both stabilizing the area and increasing the yield per unit. The second is to strengthen agricultural technology and equipment support, and develop new quality agricultural productivity according to local conditions. The third is to build a diversified food supply system. Although China's important agricultural products have achieved stable and increased production, since last year, the prices of some agricultural products have been sluggish, and the prices of some varieties have dropped significantly, affecting the efficiency of agricultural production and operation. "In this year's No. 1 central document, a set of policy 'combination punches' has been launched from production, consumption, trade and other aspects to promote the price of agricultural products such as grain to stabilize and recover, and protect farmers' enthusiasm for farming and grain planting." Zhu Weidong said. According to Zhu Weidong, firstly, increase policy support. In terms of price, we will implement the minimum purchase price policy for rice and wheat, launch rice to market purchases in Henan, Jiangsu, Heilongjiang, and Anhui provinces, increase the collection and storage of wheat and corn, promote soybean sales and processing conversion, stabilize market prices, and prevent difficulties in selling grain. In terms of subsidies, we will continue to stabilize the subsidy policy for protecting farmland fertility, improve the subsidy policies for corn and soybean producers and rice, and encourage local governments to carry out special loan interest subsidy pilot projects for grain and oil planting. In terms of insurance, the proportion of county-level premium subsidies for agricultural insurance in major grain producing counties will be reduced, and efforts will be made to expand the coverage of full cost insurance and planting income insurance for rice, wheat, corn, and soybeans, accelerating the expansion from preventing natural risks to preventing market risks. At the same time, focusing on mobilizing the enthusiasm of local governments to focus on grain production, this year we will expand the scope of the action to enhance the public service capacity of major grain producing counties, launch and implement the inter provincial horizontal interest compensation mechanism for grain production and sales areas under the central coordination, and increase support for major grain producing areas and counties by providing more "real money and silver" through the "beneficiary" provinces contributing funds and the "contributing" provinces receiving compensation. Secondly, we will focus on promoting the connection between production and sales. To break through the "last mile" of market demand, eliminate production and sales bottlenecks, and focus on stabilizing expectations, prices, and markets. For example, in response to the problem of losses in dairy farming, it is explicitly required to implement the national standard for sterilized milk, promote the consumption of fresh milk, support the integrated development of dairy farming and processing with family farms and farmer cooperatives as the main body, and promote the on-site processing and transformation of fresh milk. At the same time, we will strengthen the release of agricultural product market information and guidance on expectations, enhance capacity monitoring and regulation, and promote the stable development of the industry. Thirdly, strengthen the coordination between trade and production. China is the world's largest importer of agricultural products, and importing agricultural products is an important way to alleviate resource and environmental pressures, fill supply and demand gaps, and balance trade relations. But it is necessary to grasp the pace and intensity of imports to avoid impacting the development of domestic industries. The No. 1 central document of the Central Committee of the Communist Party of China stressed that it is necessary to improve the coordination mechanism of agricultural product trade and production, comprehensively implement policies to maintain the prices of important agricultural products such as grain at a reasonable level, stabilize market supply and demand, prevent the low price of grain from hurting farmers, and protect the interests of farmers. At present, relevant departments are taking a package of measures to promote the relief of industries such as beef cattle and dairy cows. With the continued implementation of policies, the production and operation situation is expected to improve in the next step. The increase in farmers' income is directly related to the sense of gain and happiness of the masses. Zhu Weidong emphasized the need to focus on developing industries that benefit the people. In response to the uneven development of industries in poverty-stricken areas, some of which have weak development vitality or are even difficult to sustain, we should follow the principles of consolidation, upgrading, revitalization, and adjustment, and promote the improvement of the quality and efficiency of the assisted industries according to the classification of each industry and policy. The fundamental goal of developing rural industries is still to enrich the people. We need to improve the mechanism of linking agriculture with farmers, link the support policies for new agricultural management entities with the promotion of farmers' income growth, and explore ways to ensure that farmers have work and money to earn through guaranteed dividends, equity participation, and service promotion. In addition, efforts will be made to promote stable employment and increase income for migrant workers. We need to carry out a campaign to prevent poverty from returning to employment, enhance the employment absorption capacity of the assistance workshops, and ensure that the scale of employment and income of the poverty-stricken population steadily increase. To address the issue of wage arrears for migrant workers, it is necessary to promote the comprehensive coverage and effective operation of the wage payment guarantee system for migrant workers, and to rectify various wage arrears in accordance with the law. (New Society)

Edit:Yao jue Responsible editor:Xie Tunan

Source:Securities Daily

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