General Secretary Xi Jinping recently hosted a symposium on rural reform in Xiaogang Village, Fengyang County, Anhui Province, and made an important speech emphasizing that, in terms of policy, we should consider how to improve the efficiency of grain production, increase farmers'income from growing grain, realize that farmers' production of grain and increase their income go hand in hand, and prevent farmers from losing money economically. Let big grain-growing counties suffer financially.
To speed up rural development, an important task is to promote the structural reform of agricultural supply side and improve the agricultural support and protection system. The Ministry of Finance, in an interview with reporters on the 18th, said that the Ministry of Finance has earnestly implemented the decision-making and deployment of the CPC Central Committee and the State Council, and has strongly supported the reform of price formation mechanism and storage system of agricultural products such as corn, soybeans and cotton from three aspects, so as to effectively safeguard farmers'interests and promote industrial chain up and down. Coordinative development of tourism.

Expanding Financial Subsidies to Support Pilot Reform of Target Price of Soybean and Cotton

In 2016, the "No. 1 Document" of the Central Committee proposed that the price formation mechanism and storage system of grain and other agricultural products should be reformed and improved. Reporters learned from the Ministry of Finance that, in order to improve the formation mechanism of soybean and cotton prices, China has launched soybean target price reform pilot projects in Northeast China (Liaoning, Jilin, Heilongjiang) and Inner Mongolia since 2014, and cotton target price reform pilot projects in Xinjiang.
The essence of target price reform is to explore the separation of price and compensation. The relevant person in charge of the Department of Economic Construction of the Ministry of Finance said that the financial subsidy mechanism is that when the market price is lower than the target price, the central government arranges the subsidy funds according to the difference between the target price and the market price and the yield of soybean and cotton in the pilot provinces (regions) surveyed by the State Statistical Bureau, and the provincial government is responsible for transferring the subsidy funds to planting. People.
Since the implementation of the target price reform pilot project, the central government has actively optimized the structure of fiscal expenditure, earnestly increased financial investment, fully guaranteed the target price reform subsidy funds, and guided the local government to continuously improve the subsidy methods, simplify the operation procedures. Xinjiang and other regions have done a lot of work in the payment of subsidized funds.
According to the introduction, from all aspects of the situation reflected, the fiscal subsidy policy has been better implemented, and the pilot reform has achieved positive results. With the reasonable price returning to the market, the market supply and marketing activities of soybean and cotton tend to be active, the production cost of enterprises is reduced, especially the competitiveness of cotton spinning enterprises is enhanced, and the cotton inventory sales are obviously accelerated.
According to the Ministry of Finance, the subsidy to growers from the state finance has been further strengthened. Compared with 2015, in 2016, the total amount and level of the target price subsidies of cotton and soybean by the central government have been further improved, and financial subsidies have been allocated to pilot provinces in advance, which is conducive to effectively protecting the interests of farmers.

Financial Subsidies for Maize Producers to Guarantee Grain Yield

Under the background of promoting the reform of price formation mechanism and storage system of agricultural products, this year the State Council decided to establish a subsidy system for maize producers in Northeast China (Liaoning, Jilin, Heilongjiang) and Inner Mongolia Autonomous Region, which means that the reform of temporary storage system for Maize in China is advancing rapidly.
Analysts pointed out that this is an important policy measure for the state to guarantee the basic income of farmers, promote the implementation of structural reform of agricultural supply side, and promote the quality and efficiency of agricultural development.
The Ministry of Finance, with the consent of the State Council, has issued, together with the relevant departments, opinions on the implementation of the subsidy system for corn producers. The specific subsidy policies include:
—— Market pricing and price compensation are separated. That is to say, the price of maize is formed by the market. Meanwhile, the central government will give some subsidies to the three northeastern provinces and Inner Mongolia Autonomous Region, and encourage the local government to centralize the subsidized funds to the superior producing areas, so as to ensure the basic stability of the maize planting income in the superior producing areas.
—— Quota subsidies and restructuring. On the basis of the formation of maize price from the market, the state maintains the same level of per mu subsidy for all provinces (regions), and the base period of subsidy remains unchanged for a certain period of time, giving full play to the role of price in regulating and guiding production, reflecting high quality and price, promoting the adjustment of planting structure, and improving the quality and efficiency of agricultural development.
—— Central support and provincial responsibility. According to the relevant decisions of the State Council, the central government allocates a certain amount of subsidized funds to the provincial finance, and grants local autonomy. The provinces and regions shall formulate specific subsidy implementation plans, determine the scope, object, basis and standard of subsidy in their respective provinces and regions.
—— Open and transparent, strengthen supervision. The operation of subsidies should be open and transparent. Local governments should make full use of the work foundation of the previous direct grain subsidies, consciously accept the supervision of relevant social parties, effectively strengthen the organization and implementation, and ensure that the state financial subsidies are paid to corn producers.
It is reported that the governments of the three northeastern provinces and Inner Mongolia Autonomous Region have initially formulated a subsidy scheme for corn producers in their respective provinces. The Ministry of Finance said that it would allocate some subsidy funds in advance in the near future, increase guidance and supervision to local governments, improve specific subsidy measures, and make the fiscal subsidy policy come to the ground as soon as possible.

Increased Inclination of Financial Incentive Funds for Protecting Grain Growing Initiative

The survey shows that many of the major grain-producing counties in China are poor counties, and the phenomenon of "grain and financial inversion" between grain production and county financial resources is very obvious, which brings hidden dangers to national food security.
Relevant persons in charge of the Department of Economic Development and Construction of the Ministry of Finance introduced that in 2016, the central financial budget allocated 39.4 billion yuan of incentive funds for large grain-producing counties, an increase of 2.2 billion yuan over last year. The incentive funds were further tilted towards large commodity grain provinces and grain and oil export counties, and increased financial arrangements for corn-producing areas in Huanghuai Hai.
At the same time, local governments are encouraged to increase their support for new business entities, protect farmers'enthusiasm for grain production, and promote the adjustment of planting structure such as maize, so as to better promote the realization of the goal of agricultural product storage system reform.