< p > with the news that China will cancel the controversial soybean and < a href= "//m.pmae.cn/news/index_c.asp" > cotton < /a > storage and withdrawal mechanism in 2014, the news of direct subsidy to farmers was dropped, and in December 30th, the soybean market fell sharply.

Among them, beans one and 1405 and 1409 contracts once touched down, and cotton is not moved, the decline is not obvious.

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The way of direct subsidy will realize the market to guide the change of supply and demand of soybean and cotton through the change of upstream planting mitigation in the industrial chain, so as to realize the pricing of the market and change the non market behaviors that affect the supply and demand and the price by means of administrative measures such as purchasing and storing, etc. p

In the context of the current high soybean prices and cotton prices, once the direct subsidy is formally implemented, the price will return to the inside and outside prices, and the water with high price will be backlog, against the invading foreign capital enterprises, and change the abnormal phenomenon of the internal and external market segmentation of the related industries.

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< p > from the design of soybean purchasing and storage policy, the policy of collecting and storing mainly tends to protect soybean farmers and achieve the purpose of protecting soybean planting area.

But in recent years, China's soybean acreage has continued to decline and has not reached its intended purpose.

The soybean storage and purchase policy has been implemented since 2008, and the soybean planting area in China has dropped from 12 million 118 thousand hectares in 2008 to 9 million 709 thousand hectares in 2012.

The most obvious is that the soybean planting area in Heilongjiang has shrunk dramatically.

According to the data of Heilongjiang Soybean Association, the soybean planting area in Heilongjiang reduced to 33 million 720 thousand mu in 2013, 5 million 270 thousand mu less than in previous years.

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< p > in addition, the farmers' planting costs have risen faster than those of the purchase and storage prices, and farmers' willingness to grow has decreased.

Data show that in 2012, the total cost of planting soybeans per mu in China was 578.2 yuan, while in 2008 it was only 347.99 yuan when the storage was started.

As fertilizer, labor and land costs rise, the increase in the price of storage and storage will not make the farmers gain.

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< p > in addition, if we increase the price of < a href= "//m.pmae.cn/news/index_c.asp" > storage price < /a >, the quotation of soybean imported from abroad will also increase correspondingly.

This actually subsidized foreign suppliers in disguise, and domestic oil plants were not damaged, and imported soybeans still flocked.

If the focus of the social debate ten years ago is whether to import soybeans, now the focus has changed to whether to discard domestic soybean production or not to protect the domestic soybean industry.

The rapid growth of imports, a large number of foreign subsidies, and obvious dumping behavior made China's soybean industry gradually fall into the trap.

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< p > if the implementation of < a href= "//m.pmae.cn/news/index_c.asp" > Direct Subsidy < /a >, the situation will be different.

Direct subsidy will squeeze foreign enterprises to drive up the price of soybeans and suppress the behavior of China's soybean crushing enterprises.

The reason why the policy of purchasing and storage is not beneficial to the farmers is the speculation among the middlemen and the fact that the farmers are small and scattered.

Direct subsidy will increase farmers' income and play a positive role in easing the shrinking soybean and cotton growing area in China.

If RMB 100 yuan per mu is added, then the competition between China's domestic soybean and foreign soybean is weak.

Because domestic soybean is non pgenic, mainly used for food, while imported soybeans are all genetically modified soybeans, mainly squeezing feed soybean meal and edible soybean oil. The two complement each other.

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"P > cotton industry, the purchase and storage also led to China's cotton, textile and clothing industry in trouble.

At present, the cotton industry is in a predicament, and many industrial entities have failed to benefit.

At present, the focus of cotton industry is that the cost of raw materials is too high and demand is not strong.

In the past 3 years, the state's purchase and storage policy has been implemented, and the cotton industry is going downhill.

Domestic cotton prices are much higher than international market prices, and domestic cotton prices are obviously overvalued.

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< p >, therefore, if cotton farmers are directly compensated, the domestic cotton prices will be broken before they are established.

That is, under the impact of imported cotton prices, domestic cotton prices are first considered to the international cotton price. Under the direct subsidy policy, cotton farmers suffer from limited losses.

Later, when domestic and international markets are linked up, the price of international cotton will also rise, thus forming a new equilibrium price, and the price of cotton will be priced by global supply and demand.

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