Xinjiang Cotton Target Price Subsidy Pilot Policy

The target price policy is an agricultural support policy based on the market price of agricultural products and protecting the interests of producers through differential subsidy.

If the market price is higher than the target price set by the government, the subsidy policy will not start; if the market price is lower than the target price, the farmers will follow the market, and the difference between the market price and the target price will be subsidized by the government to the farmers.

In 2014, according to the spirit of the central document No.1, "exploring the reform of promoting the decoupling of the price formation mechanism of agricultural products from the government subsidies", China launched the pilot policy of cotton target price subsidy in Xinjiang.

According to the policy plan, the pilot project will be completed in three years. After the completion of the trial, the adjustment policy will be further improved after considering the policy effect, market reaction and problems.

On the basis of a comprehensive evaluation of the pilot policy of cotton target price subsidy, this paper discusses the necessity of continuing the pilot policy of target price subsidy, and puts forward some policy recommendations for the problems existing in the pilot policy.

The basic content and operation methods of our cotton target price subsidy pilot policy are as follows:

1. target price level.

The principle of cotton target price level is production cost plus basic income.

The specific calculation method is: cotton production cost of last year * average growth rate of cotton production cost in the first three years + the first three years.

Net profit mean K (protection coefficient) (K value is between 0-1).

The protection coefficient is mainly determined by market supply and demand and financial affordability.

In the past 2014-2016 years, the target price of cotton in China was 19800 yuan, 19100 yuan and 18600 yuan per ton respectively.

2. market price determination.

The price cycle of cotton market prices is determined according to the peak period of farmers' sale of cotton, that is, from September to March of next year.

Because farmers sell seed cotton and lack of standards, they can not be directly graded. Therefore, in the market price collection, the cotton seeds sold by farmers are converted into lint prices according to the standard formula.

Then, according to the market price and the target price difference, decide whether to start the target price and the level of subsidy after startup.

3., policies should be implemented.

According to the state

The cotton price target subsidy policy is only implemented in Xinjiang, and the cotton area in the mainland is not implemented.

The quota subsidy method was applied to the inland the Yellow River River Basin and the Yangtze River Basin cotton area. The subsidy scope was nine provinces in Shandong, Hubei, Hunan, Hebei, Jiangsu, Anhui, Henan, Jiangxi and Gansu. The annual subsidy amount was 60% of the standard of the subsidized subsidy, with a maximum of 2000 yuan per ton.

4. subsidy operation mode.

In 2014, Xinjiang was mainly subsidized by area and output, that is, 60% subsidized by seed area and 40% by seed cotton sale volume. The Corps was fully subsidized according to the sales volume (for the accumulation of experience, 2014).

Xinhe County and Akesu county are subsidized according to the cotton sale volume and the cotton planting area subsidy.

In 2015, Xinjiang adjusted the way of subsidy.

90% of the total amount of central subsidy will be subsidized according to the seed cotton sale volume. The remaining 10% will be added as part of the subsidy to the basic farmers in the 4 counties of Kashi, Hotan, Akesu and kiriz Kirgiz in the southern Xinjiang.