Food price cuts cause a chain reaction or will change the agricultural pattern

[China Agricultural Machinery Industry News] At present, the price of food represented by corn is gradually lower, and it may be docked with international grain prices in the future to solve the problem of huge food price gaps at home and abroad. However, things are not that simple. Food price cuts may trigger a series of chain reactions that will change the entire Chinese agriculture and change the lives of every farmer.

Food price cuts cause a chain reaction or will change the agricultural pattern

Let's see how China's agriculture and your life will change.

Promote urbanization and a large number of farmers enter the city

If China wants to develop, it must be urbanized in large numbers to change China's pattern as a big agricultural country. The premise of urbanization is that a large number of farmers enter the city. If food prices continue to be high, are you as farmers, willing to leave their land?

The answer is not willing.

Soybean prices have fallen, corn prices have fallen sharply, and you and the farmers around you have this feeling. If you don’t make money, it’s better to work faster, and China’s rice and wheat should be lowered, so that scattered small farmers The land is not making money.

Once they don't make money, the peasants can only transfer or host the land and enter the city to seek a way to live. This indirectly promotes the process of urbanization.

Moderate scale operation of agriculture will be realized

If agriculture wants to develop, it must achieve modest scale management in order to improve competitiveness, reduce costs, and achieve economies of scale.

As early as 1987, China mentioned moderate scale operation, but it was not mentioned in the past few years, but it is not very good in terms of effect.

Because of what?

It is because the food price is too high, the farmers' income is not bad, no one is willing to give up the land, so the land is difficult to form a scale.

Now that the price of food has been lowered, the scattered farmers have not made any money. Farmers are forced to abandon their land just as they are forced to enter the city. These land are slowly transferred to the hands of people who will be farming. These people pass the high-tech. Technology can make money, and once the land is formed, it will reduce costs, increase planting efficiency, and gradually form a moderate scale operation.

Capital will enter agriculture and promote agricultural development

If an industry does not have the promotion of capital, it is difficult to develop rapidly, capital is profit-seeking, and know how to use small amounts of money to create big benefits.

It is very difficult for China's agricultural capital to enter, because it is too scattered, and the cost of capital entry is too high and too troublesome.

After the scale of land formation, the cost of capital entry is much lower. The original capital has to face 100 peasants. Now it is enough to face only 10 peasants, and it is easy to talk about.

After capital is easy to enter, it will drive the development of agriculture and create greater profits.

Promote real estate destocking

The real estate destocking is not much less than the food destocking pressure. The population in the city is so many people, and the purchasing power has already been greatly overdrawn. After the peasants enter the city, although they will not buy all the houses, there will definitely be some purchases, which will speed up the sales of real estate in the third and fourth tier cities.

Why are the third- and fourth-tier cities, because the farmers there can afford it, if the first-tier cities are tens of thousands per square, can you buy them?

Provide a large number of stable and cheap labor for the city

In fact, this part is about "demographic dividends," but I am afraid that everyone does not understand what it means, so it is written more directly.

In the past, rural laborers also went to work in the city during their leisure time, but they were not very stable. However, once farmers abandoned the land and entered the city, they would become full-time cheap labor, which would reduce the labor costs of production enterprises and generate greater profits.

However, this link is a double-edged sword. The key lies in whether it can fully resettle employment. If this problem can be solved, it will produce a "demographic dividend". However, if the employment placement effect is not good, it will bring a great social burden. There will be instability.

Therefore, food price cuts are not as simple as you think, and will greatly change the pattern of China's agriculture and change the lives of Chinese farmers.