Will Cotton Subsidies Be Changed To Cotton Farmers In The Mainland?

2015 Xinjiang

The subsidy work was finally settled. Under the market condition that cotton prices continued to fall, the government gave the subsidy.

Cotton farmers have higher subsidies.

In 2014, the cotton farmers in Xinjiang got cotton subsidies of 440 yuan / mu, and in 2015, they got more than 500 yuan / mu. The increase of the subsidy amount provided an important guarantee for cotton growers to continue to plant cotton.

Compared with Xinjiang, the amount of subsidized cotton farmers in the mainland is relatively low. According to the 2015 year cotton subsidy rules promulgated by some provinces, the subsidy standards of some provinces are not rising or falling. Will cotton farmers continue to plant cotton this year?

Up to now, Shandong and Henan provinces and municipalities directly under the central government of Tianjin have clearly stipulated the cotton subsidy standard. According to the detailed rules promulgated, 2015 is still subsidized according to the planting area counted by the Provincial Bureau of statistics in 2015.

Among them, the subsidy standard of Shandong in 2014 was 235 yuan / mu, and this year dropped to 150 yuan / mu, a decrease of 36.2%.

It is reported that the central government has determined the total subsidy of the 9 provinces in the mainland according to the total output of cotton, and the provincial finance has calculated the cotton per mu subsidy standard based on the area of the province.

The reduction of Cotton Subsidy Standard in Shandong in 2015 may be due to the decrease in total cotton subsidies resulting from the decrease in total cotton production, which in turn affects the average cotton subsidy per mu.

Some cotton growers in Shandong say that the reduction in subsidies has little impact on them, after all, and cotton subsidies are still higher than other crops.

The key problem now is that cotton prices continue to go down, and cotton planting is no longer profitable. This year, we plan to try corn and other crops.

Although the benefits of other crops are not high, the cost of labor is greatly reduced due to the high level of planting mechanization.

According to the national cotton market monitoring system in November 2015, cotton planting intentions showed that the the Yellow River River Basin

The intended cotton planting area was 9 million 326 thousand mu, down 15.7% compared with the same period last year, of which Shandong province dropped by 7.1%.

In 2014, the actual planting area of cotton in Shandong province was 5 million mu, down 34.4% from the same period last year.

After a great decline, the space for remaining cotton planting land in Shandong is not large enough.

Compared with the subsidy situation in Shandong Province, the cotton subsidy standard of cotton growers in Henan province has increased compared with 2014.

It is understood that the average subsidy standard for cotton in Henan in 2015 is 140 yuan, which is higher than 4-5 yuan per mu in 2014.

Even so, the cotton planting intention in Henan dropped by 8.9% compared with the same period in 2015.

Up to now, the other 7 provinces' subsidy rules have not yet been announced, but according to the situation of two provinces in Shandong and Henan, the cotton planting intention of cotton growers in 2015 will continue to decline, but the drop is less than 2014.

While vigorously reducing cotton planting area in Xinjiang, cotton farmers in the mainland are moving forward in the same direction.