China Stabilizes Agricultural Prices, Boosts Farmers' Income

China to Stabilize Agricultural Prices and Boost Farmers' Income

China will prioritize efforts to stabilize agricultural prices and boost farmers' income, according to officials and experts. This comes in response to recent challenges of falling crop prices and weakened farmer incentives.

The No. 1 central document, released on Sunday, emphasizes the need to balance domestic production with global market dynamics. It focuses on agricultural and rural development, highlighting the importance of coordinating agricultural trade and production to stabilize grain prices, increase farmer income, and safeguard national food security.

Addressing Price Declines and Import Impacts

The declining prices of key commodities like corn, soybeans, and beef have eroded agricultural profits. Local authorities have implemented relief measures, and recent data indicates stabilizing prices and improved market confidence.

However, China's increasing imports of grain and key agricultural products have led to depressed domestic prices and hampered the competitiveness of local industries. Wheat and corn imports have exceeded annual quotas for several years, while soybean imports have surpassed 100 million metric tons annually. Beef remains the second-largest imported agricultural product after soybeans.

Proposed Solutions

Experts suggest enhancing agricultural productivity through technology and structural reforms, optimizing import controls to reduce reliance on single sources, and improving market information transparency to guide farmers' decisions.

They also call for enhanced monitoring of global markets, stricter quota management for grains and meat, and crackdowns on smuggling to protect local sectors.

Government Support Measures

The document stipulates that minimum purchase prices for rice and wheat will be enforced, with State-backed purchasing programs expanded in major grain-producing provinces. Subsidies for corn, soybean, and rice growers, as well as pilot programs for low-interest loans to grain and oilseed farmers, will be optimized.

The central government will reduce the financial burden on major grain-producing counties by cutting their share of agricultural insurance premiums. Coverage for crop income and full-cost insurance will expand to shield farmers from both natural and market risks.

Balancing Production and Consumption

Efforts to bridge production and consumption gaps include promoting dairy industry integration and enforcing stricter standards for pasteurized milk to revive domestic demand. Local authorities will support localized processing and encourage household farms to lead value-added production, reducing losses in dairy farming.

With sustained support, the document aims to strike a delicate balance between stabilizing prices for farmers and ensuring affordable food supplies for the country, which is the world's biggest importer of agricultural products.