Will there be any changes to Xinjiang’s cotton target price policy?
Abstract: On February 5, the Central Committee of the Communist Party of China and the State Council issued “Several Opinions on Deeply Promoting Agricultural Supply-side Structural Reform and Accelerating the Cultivation of New Motive Force for Agricultural and Rural Development”. The opinions pointed out that we must adapt to the new situation and new requirements, adhere to a problem orientation, and adjust the focus of work. Deeply advance the structural reform of the agricultural supply side, accelerate the cultivation of new driving forces for agricultural and rural development, and create a new situation in agricultural modernization. Regarding the release of the Central Committee’s No. 1 Document in 2017, various media outlets have focused on the document.
2month5The Central Committee of the Communist Party of China and the State Council issued “On Deepening the Agricultural Supply-Side Structural Reform and Accelerating the Cultivating of Agricultural and Rural Development” “Several Opinions on New Motive Forces”, which pointed out that we must adapt to the new situation and new requirements, adhere to a problem orientation, adjust the focus of work, deepen the structural reform of the agricultural supply side, accelerate the cultivation of new driving forces for agricultural and rural development, and create a new situation in agricultural modernization.
Regarding the release of the No. 1 Central Document of 2017, various media outlets have interpreted the cotton-related content in the document. In addition, people from relevant policy-making departments have also spoken out in response. After the Xinjiang cotton target price trial for 3 years, whether the follow-up policy will continue is a matter of concern to everyone. It is reported that the frequency of the word “cotton” appearing in this year’s Central Document No. 1 is significantly higher than in previous years. It is mentioned in four aspects, namely:
1. Coordinate and adjust the grain, economic and feed planting structure, consolidate the production of cotton, oilseeds and sugar in main producing areas, and promote horticultural crops. Add value and efficiency;2. Further optimize the agricultural regional layout, and scientifically and rationally demarcate the grain production of rice, wheat, and corn based on the main functional area planning and the layout planning of superior agricultural products. Functional areas and protected areas for the production of important agricultural products such as soybeans, cotton, rapeseed, sugar cane, and natural rubber; 3, deepening the price formation mechanism and purchase and storage of important agricultural products such as grains System reform, adjust and improve the Xinjiang cotton target price policy, and improve subsidy methods;4. Improve the subsidy policy for agricultural machinery purchase, and increase the entire production process of grain, cotton, oil, sugar and forage. Subsidies for machinery and equipment required for mechanization.
This year’s No. 1 document proposed adjusting and improving Xinjiang’s cotton target price policy and improving subsidy methods, which are particularly worthy of attention from all walks of life. Since Xinjiang’s cotton target price was implemented3 years ago, it has continued to improve and develop financial subsidies and payment methods, gradually reducing area partial subsidies and increasing the proportion of output ( The 2016Xinjiang target price subsidy policy stipulates that90% of the partial subsidy based on output is enjoyed by cotton farmers in the four prefectures of southern Xinjiang 10%area partial subsidy), and the subsidy payment method is also constantly improved based on the interests of cotton farmers. 2014It will be distributed 4 times, which not only takes a long time to redeem, but also brings certain difficulties to statistical accounting work. . In 2015-2016 (disbursed in two installments), the disbursement process will be optimized, the disbursement time will be shortened, and cotton farmers will receive subsidies as soon as possible. This year’s No. 1 document proposes to continue to improve Xinjiang’s cotton target price policy and improve subsidy methods. It is foreseeable that further changes will occur in2017‘s subsidies and payment methods.
News held at the State Council Information Office on February 6 At the press conference, Han Jun, deputy director of the Office of the Central Rural Work Leading Group, said that the (cotton target price) reform was still very successful. Xinjiang will continue to implement it. As for how to “adjust and improve”, relevant departments are now studying the formulation of further policy plans. This response will undoubtedly give Xinjiang cotton farmers reassurance that the subsidy policy will continue to be implemented and the income of cotton farmers will continue to be guaranteed. Compared with the previous Xinjiang cotton target price subsidies based on area and output, the country will adjust and improve it this year. Xinjiang’s cotton target price has made great progress in promoting cotton prices to return to normal and improving cotton quality since its implementation three years ago, but there are also certain problems. Relevant experts from the Rural Economic Research Center of the Ministry of Agriculture said that from the practice in the past three years, there are the following two problems:
First, it is more difficult to set target prices, which will eventually become the result of a game between different departments and different stakeholders. Due to the different interest demands of different entities and different departments, inconsistent policy views, and different understandings of industrial development, the differences in opinions among all parties are increasing, making it increasingly difficult to set target prices; second, market entities have unclear expectations for the target price level . Although cotton production costs are increasing from 2014 to 2016, the cotton target price continues to be lowered. It is unclear whether it will continue to be lowered or how it will change in the future., which is not conducive to the production decisions of market entities.
In addition, the target price subsidy implemented in our country is a “yellow box subsidy”, and the amount of the subsidy is subject to the upper limit of the micro amount. In accordance with its WTO commitments, my country’s “yellow box” subsidies for specific varieties shall not exceed8.5%of the total output value of the variety that year. If measures are not taken to avoid this in the future, it may raise questions from other member states and lead to trade disputes. In short, there is a long way to go before the introduction of detailed rules for cotton target prices in Xinjiang in 2017. No matter how cotton is subsidized in the future, the cotton planting rights and interests of Xinjiang cotton farmers will always be protected. It gives reassurance to the majority of Xinjiang cotton farmers!
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Will there be any changes to Xinjiang’s cotton target price policy?
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