Improve Cotton Target Price Subsidy Pilot Policy How To Do

Considering that cotton target price subsidy pilot policy has better effect, higher market main body satisfaction, local government's policy recognition, Xinjiang special regional conditions and other factors, it is recommended to continue to implement cotton target price subsidy policy in Xinjiang area.

The existing problems need to be solved gradually by adjusting the target price pricing mechanism and improving the subsidy scheme.

1. improve cotton target price determination method.

Making more use of the market

The guiding role of signal to cotton production, taking into account the financial sustainability and sustainability of subsidies, is suggested to further improve the determination method of cotton target price level.

The main idea is to reduce the protection level of target price to net income, and gradually make the target price close to the level of capital preservation, and guide cotton production to concentrate on dominant producing areas and dominant varieties.

2. perfect

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In order to comply with WTO rules and refer to other countries' practices, it is suggested that the central government's subsidy to local governments should be adjusted to fixed output (or base period output) according to the statistical output of cotton in that year, so as to achieve a "semi decoupling" between subsidies and production, and strive to include subsidy policies in the "blue box" subsidy category.

3. limit the subsidy ceiling.

In the current subsidy scheme, both basic farmers and business units can get the same subsidy.

However, compared with the basic household, the operating units are much higher in terms of capital strength, anti risk ability and profitability. If it is completely equal to the basic farmers' equal enjoyment of national policies, it is unfair.

For business units, it is a prerequisite for them to determine and undertake market risks.

It is suggested that the basic farmers and business units should be treated differently on the subsidy scheme in the future. According to the different situations in North and South Xinjiang, the upper limit of the subsidy scale for the operating units will be limited.

4., we should adjust and perfect the quota subsidy mechanism in the mainland.

In view of the mainland

The effect of quota subsidy is general. It is suggested to adjust the subsidy mechanism in the mainland at present, and change from "inclusive" to "preferential".

Cotton is a drought tolerant and salt tolerant crop. It plays an important role in crop structure adjustment and environmental protection.

In the future, the North China funnel area, the the Yellow River delta saline alkali land, the saline alkali land in Northern Jiangsu and the cotton growing areas with some advantages of cotton planting can be mainly supported.

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.