Issues and Recommendations on Supply-Side Structural Reform of Maize in China

Guo Ke

doi:doi:10.11648/j.ajaf.20180606.13

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Issues and Recommendations on Supply-Side Structural Reform of Maize in China

Guo Ke

Published in American Journal of Agriculture and Forestry (Volume 6, Issue 6)

Received: 22 August 2018 Accepted: 4 October 2018 Published: 29 October 2018

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Abstract

The background of supply-side structural reform of maize in China to solve the problems caused by the temporary purchase and storage policy of maize. The eight years of the policy’s implementation leads to issues related to maize’s excessively temporary inventory, manifested as the significant increasement in numbers of its planting area, its output, it and its substitutes’ import have. The key concept of maize’s supply-side structural reform is to replace the previous policy with the “marketized acquisition with subsidy” in order to allow the market to be a more important role in the determination of maize’s producing, consuming and purchasing, which contributes to solve current issues. In the practice of the reform from 2016 to 2017, the influence is notable that the number of the planting area and output have decreased to a certain extent, and the government’s inventory has decreased accordingly. But there are still some concerns in the maize industry to be addressed, including balancing the interests in the short term and long term, reducing the effect of auction on inventory, balancing the relationship between the product price and planting income, reducing the potential negative effect of new processing capacity on the whole industry, taking other unfavorable factors into account, and considering the related enterprises’ lack of risk awareness. Given the above analysis, six suggestions are put forward by the author, including to design the policy on the basis of breaking the contradiction cycle, to ensure the market’s effective operation, to promote the marketization of maize price with full use of the tool of insurances and futures, to prudently implement maize processing projects, to improve farmer’s management ability, and to improve the enterprises’ risk management ability by perfecting market system.

Published in	American Journal of Agriculture and Forestry (Volume 6, Issue 6)
DOI	10.11648/j.ajaf.20180606.13
Page(s)	176-181
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Maize, Supply-side Structural Reform, Temporary Purchase and Storage, Structural Adjustment, Reduce Inventory, Planting Area, Price, Yield

References

[1]	Sun Xueli, etc. Research on the supply-side structural reform of agricultural products [J]. Guangxi Social Sciences, 2016(9), 87-91.(in Chinese)
[2]	Chen Yesheng, etc. Train of Thought and Orientation of China's Maize Supply-side Structural Reform [J]. Agricultural outlook, 2016 (8), 34-37.(in Chinese)
[3]	Zheng Shi. Research on the policy of "three quantity increase" and supply-side structural reform [J]. Price: Thoery & Practice, 2016 (8), 29-32.(in Chinese)
[4]	Weng Min. Scientific understanding of the agricultural supply-side structural reform [J]. Rural Economy, 2017(3), 1-5.(in Chinese)
[5]	Guo Qinghai. Analysis of the difficulties in the supply-side structural reform of Maize Industry [J]. Agricultural Economics and Management, 2017 (1), 5-11.(in Chinese)
[6]	Shu Kunliang, etc. Structural reform path and countermeasures of maize supply-side in Jilin Province [J]. Journal of Maize Sciences, 2016, 24(6), 165~169. (in Chinese)
[7]	Liu Fan. Analysis on supply-side reform of maize industry in Anhui Province[J]. Journal of Anhui Science and Technology University, 2018, 32(1), 106-110.(in Chinese)
[8]	Guo Ke. Development and idea on supply-side reform of maize [J]. Agricultural outlook, 2017(9), 18-20.(in Chinese)
[9]	Lin Huochan. The grain output of the whole country fell slightly this year on year-on-year basis [N]. Economic Daily, 2016-12-09(003).(in Chinese)
[10]	Mei Lihong. Conjecture on the trend of domestic maize market in 2017 [J]. China Grain Economy, 2017(3): 37-39. (in Chinese)
[11]	Nameless. Ministry of Agriculture: Reducing the planting area of maize by 40 million mu [J]. Seed technology, 2017(3), 1. (in Chinese)
[12]	People's Republic of China Central People's Government Network. National reduction of 20 million mu of maize planting area in 2017 [EB/OL]. (2017 -12 -18) [2018 -05 -04]. http://www.gov.cn/xinwen/2017-12/18/content_5248269.htm. (in Chinese)
[13]	Fu Xiangmin. Some thoughts on reducing the stock of maize [J]. China Grain Economy, 2017(4), 18-19. (in Chinese)
[14]	Yang kai. The impact of The US Agriculture Act of 2014 on us Conservation Reserve Program [J]. World Agriculture, 2017(2), 162-163. (in Chinese)
[15]	Dong Wanlu, etc. The guarantee function of American agricultural insurance and farm produce futures to farmers' income [J]. Chinese Rural Economy, 2014(9), 82-86. (in Chinese)
[16]	Ren Baitong. Analysis of China's insurance industry's new mode of serving agriculture, rural areas and farmers from the perspective of "insurance + futures" [J]. Shanghai Insurance, 2017(2), 34-37. (in Chinese)

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APA Style

Guo Ke. (2018). Issues and Recommendations on Supply-Side Structural Reform of Maize in China. American Journal of Agriculture and Forestry, 6(6), 176-181. https://doi.org/10.11648/j.ajaf.20180606.13

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Guo Ke. Issues and Recommendations on Supply-Side Structural Reform of Maize in China. Am. J. Agric. For. 2018, 6(6), 176-181. doi: 10.11648/j.ajaf.20180606.13

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AMA Style

Guo Ke. Issues and Recommendations on Supply-Side Structural Reform of Maize in China. Am J Agric For. 2018;6(6):176-181. doi: 10.11648/j.ajaf.20180606.13

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@article{10.11648/j.ajaf.20180606.13,
  author = {Guo Ke},
  title = {Issues and Recommendations on Supply-Side Structural Reform of Maize in China},
  journal = {American Journal of Agriculture and Forestry},
  volume = {6},
  number = {6},
  pages = {176-181},
  doi = {10.11648/j.ajaf.20180606.13},
  url = {https://doi.org/10.11648/j.ajaf.20180606.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajaf.20180606.13},
  abstract = {The background of supply-side structural reform of maize in China to solve the problems caused by the temporary purchase and storage policy of maize. The eight years of the policy’s implementation leads to issues related to maize’s excessively temporary inventory, manifested as the significant increasement in numbers of its planting area, its output, it and its substitutes’ import have. The key concept of maize’s supply-side structural reform is to replace the previous policy with the “marketized acquisition with subsidy” in order to allow the market to be a more important role in the determination of maize’s producing, consuming and purchasing, which contributes to solve current issues. In the practice of the reform from 2016 to 2017, the influence is notable that the number of the planting area and output have decreased to a certain extent, and the government’s inventory has decreased accordingly. But there are still some concerns in the maize industry to be addressed, including balancing the interests in the short term and long term, reducing the effect of auction on inventory, balancing the relationship between the product price and planting income, reducing the potential negative effect of new processing capacity on the whole industry, taking other unfavorable factors into account, and considering the related enterprises’ lack of risk awareness. Given the above analysis, six suggestions are put forward by the author, including to design the policy on the basis of breaking the contradiction cycle, to ensure the market’s effective operation, to promote the marketization of maize price with full use of the tool of insurances and futures, to prudently implement maize processing projects, to improve farmer’s management ability, and to improve the enterprises’ risk management ability by perfecting market system.},
 year = {2018}
}

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TY  - JOUR
T1  - Issues and Recommendations on Supply-Side Structural Reform of Maize in China
AU  - Guo Ke
Y1  - 2018/10/29
PY  - 2018
N1  - https://doi.org/10.11648/j.ajaf.20180606.13
DO  - 10.11648/j.ajaf.20180606.13
T2  - American Journal of Agriculture and Forestry
JF  - American Journal of Agriculture and Forestry
JO  - American Journal of Agriculture and Forestry
SP  - 176
EP  - 181
PB  - Science Publishing Group
SN  - 2330-8591
UR  - https://doi.org/10.11648/j.ajaf.20180606.13
AB  - The background of supply-side structural reform of maize in China to solve the problems caused by the temporary purchase and storage policy of maize. The eight years of the policy’s implementation leads to issues related to maize’s excessively temporary inventory, manifested as the significant increasement in numbers of its planting area, its output, it and its substitutes’ import have. The key concept of maize’s supply-side structural reform is to replace the previous policy with the “marketized acquisition with subsidy” in order to allow the market to be a more important role in the determination of maize’s producing, consuming and purchasing, which contributes to solve current issues. In the practice of the reform from 2016 to 2017, the influence is notable that the number of the planting area and output have decreased to a certain extent, and the government’s inventory has decreased accordingly. But there are still some concerns in the maize industry to be addressed, including balancing the interests in the short term and long term, reducing the effect of auction on inventory, balancing the relationship between the product price and planting income, reducing the potential negative effect of new processing capacity on the whole industry, taking other unfavorable factors into account, and considering the related enterprises’ lack of risk awareness. Given the above analysis, six suggestions are put forward by the author, including to design the policy on the basis of breaking the contradiction cycle, to ensure the market’s effective operation, to promote the marketization of maize price with full use of the tool of insurances and futures, to prudently implement maize processing projects, to improve farmer’s management ability, and to improve the enterprises’ risk management ability by perfecting market system.
VL  - 6
IS  - 6
ER  -

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Author Information

Guo Ke

Research Institute of Dalian Commodity Exchange, Beijing, China

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APA Style

Guo Ke. (2018). Issues and Recommendations on Supply-Side Structural Reform of Maize in China. American Journal of Agriculture and Forestry, 6(6), 176-181. https://doi.org/10.11648/j.ajaf.20180606.13

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ACS Style

Guo Ke. Issues and Recommendations on Supply-Side Structural Reform of Maize in China. Am. J. Agric. For. 2018, 6(6), 176-181. doi: 10.11648/j.ajaf.20180606.13

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AMA Style

Guo Ke. Issues and Recommendations on Supply-Side Structural Reform of Maize in China. Am J Agric For. 2018;6(6):176-181. doi: 10.11648/j.ajaf.20180606.13

Copy | Download

@article{10.11648/j.ajaf.20180606.13,
  author = {Guo Ke},
  title = {Issues and Recommendations on Supply-Side Structural Reform of Maize in China},
  journal = {American Journal of Agriculture and Forestry},
  volume = {6},
  number = {6},
  pages = {176-181},
  doi = {10.11648/j.ajaf.20180606.13},
  url = {https://doi.org/10.11648/j.ajaf.20180606.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajaf.20180606.13},
  abstract = {The background of supply-side structural reform of maize in China to solve the problems caused by the temporary purchase and storage policy of maize. The eight years of the policy’s implementation leads to issues related to maize’s excessively temporary inventory, manifested as the significant increasement in numbers of its planting area, its output, it and its substitutes’ import have. The key concept of maize’s supply-side structural reform is to replace the previous policy with the “marketized acquisition with subsidy” in order to allow the market to be a more important role in the determination of maize’s producing, consuming and purchasing, which contributes to solve current issues. In the practice of the reform from 2016 to 2017, the influence is notable that the number of the planting area and output have decreased to a certain extent, and the government’s inventory has decreased accordingly. But there are still some concerns in the maize industry to be addressed, including balancing the interests in the short term and long term, reducing the effect of auction on inventory, balancing the relationship between the product price and planting income, reducing the potential negative effect of new processing capacity on the whole industry, taking other unfavorable factors into account, and considering the related enterprises’ lack of risk awareness. Given the above analysis, six suggestions are put forward by the author, including to design the policy on the basis of breaking the contradiction cycle, to ensure the market’s effective operation, to promote the marketization of maize price with full use of the tool of insurances and futures, to prudently implement maize processing projects, to improve farmer’s management ability, and to improve the enterprises’ risk management ability by perfecting market system.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Issues and Recommendations on Supply-Side Structural Reform of Maize in China
AU  - Guo Ke
Y1  - 2018/10/29
PY  - 2018
N1  - https://doi.org/10.11648/j.ajaf.20180606.13
DO  - 10.11648/j.ajaf.20180606.13
T2  - American Journal of Agriculture and Forestry
JF  - American Journal of Agriculture and Forestry
JO  - American Journal of Agriculture and Forestry
SP  - 176
EP  - 181
PB  - Science Publishing Group
SN  - 2330-8591
UR  - https://doi.org/10.11648/j.ajaf.20180606.13
AB  - The background of supply-side structural reform of maize in China to solve the problems caused by the temporary purchase and storage policy of maize. The eight years of the policy’s implementation leads to issues related to maize’s excessively temporary inventory, manifested as the significant increasement in numbers of its planting area, its output, it and its substitutes’ import have. The key concept of maize’s supply-side structural reform is to replace the previous policy with the “marketized acquisition with subsidy” in order to allow the market to be a more important role in the determination of maize’s producing, consuming and purchasing, which contributes to solve current issues. In the practice of the reform from 2016 to 2017, the influence is notable that the number of the planting area and output have decreased to a certain extent, and the government’s inventory has decreased accordingly. But there are still some concerns in the maize industry to be addressed, including balancing the interests in the short term and long term, reducing the effect of auction on inventory, balancing the relationship between the product price and planting income, reducing the potential negative effect of new processing capacity on the whole industry, taking other unfavorable factors into account, and considering the related enterprises’ lack of risk awareness. Given the above analysis, six suggestions are put forward by the author, including to design the policy on the basis of breaking the contradiction cycle, to ensure the market’s effective operation, to promote the marketization of maize price with full use of the tool of insurances and futures, to prudently implement maize processing projects, to improve farmer’s management ability, and to improve the enterprises’ risk management ability by perfecting market system.
VL  - 6
IS  - 6
ER  -

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