CCM: China concentrates on reducing corn planting area in 2016 05-20-2016

In order to match and boost the supply-side structural reform of agriculture, the Ministry of Agriculture of the People's Republic of China (MOA) issued the National Adjustment Plan of Crop Framing Structure (2016-2020) on 11 April, 2016, in order to adjust the planting of major crops including grains and cotton during 2016-2020 in China.


                                                                                                    Source: Baidu


According to the plan, China takes two "maintaining", three "stabilization" and two "coordination" as the major goals, which focus mainly on stabilizing the planting of most crops.

 

China's goals of adjusting planting structure of crop farming, 2020

Goal

Detail

Two "maintaining"

To maintain the rations and cereals – by 2020, the planting areas of grains, rations (like rice and wheat) and cereals should be maintained at about 110 million ha (1.65 billion mu), 53.33 million ha (800 million mu) and 93 million ha (1.4 billion mu) respectively.

Three "stabilization"

To stabilize the self-sufficiency of cotton, edible vegetable oil and sugar – by 2020, the planting areas of cotton, oil crop, and sugar crop should be stabilized at about 3.33 million ha (50 million mu), 13.33 million ha (200 million mu) and 1.60 million ha (24 million mu) respectively.

Two "coordination"

To coordinate the production and demand of vegetables – by 2020, the planting areas of vegetables and forage grass should reach around 21.33 million ha (320 million mu) and 6.33 million ha (95 million mu) respectively.

                                                                                               Source: MOA

 

In the adjustment plan, China bestows great importance to 4 particular points concerning the corn planting area:

 

1. Reducing the corn planting area

 

China ought to properly reduce the corn planting area in non-dominant areas including the northeast cold area, the northern agro-pastoral area, the northwestern sandy arid area, and the Huang-Huai-Hai area. By 2020, China's total corn planting area should be stabilized at about 33.33 million ha (500 million mu) and the country will reduce more than 3.33 million ha (50 million mu) of corn planting area in the sickle-shape region.

 

2. Expanding the planting area of silage corn

 

China will develop silage corn in line with local conditions to provide raw material for high quality feed. By 2020, the total planting area of silage corn in China should be 1.67 million ha (25 million mu).

 

3. Conducting rotation on other crops with corn

 

China plans to conduct rotation of corn with soybean and medicago in northeastern, corn with soybean in Huang-Huai-Hai area, and "525 rotation" in northern agro-pastoral area (525 rotation: 5 years for medicago, two years for corn and again 5 years for medicago).

 

4. Developing other corn varieties

 

China plans to actively develop sweet-waxy corn, high-lysine-containing corn, and high-oil corn and expand the planting area of fresh corn. By 2020, the planting area of fresh corn will amount to 1 million ha (15 million mu).



 

Adjustment direction of corn planting in China, 2016-2020

Region

Adjustment direction

Northeast

1.To reduce the planting area of corn in the north of Heilongjiang Province, the fourth and the fifth accumulated temperature areas in Hulunbeir, Inner Mongolia Autonomous Region

By 2020, the planting area of corn (mainly be used by its kernels) will be reduced by over 2 million ha (30 million mu)

2. To expand the planting area of silage corn to 666,666 ha (10 million mu) by 2020. To set up reasonable rotation system – soybean-corn rotation in Heilongjiang, Jilin and Liaoning provinces and to launch "525 rotation" in northeast agro-pastoral area

Huang-Huai-Hai area

To stabilize the planting area of corn at 10.67 million ha (160 million mu) by 2020

South

To develop fresh corn and expand the planting area of corn planting in winter

                                                                        Source: MOA

 

According to the adjustment plan, China mainly concentrates on reducing the planting area of corn. In fact, the Chinese government recently issued many policies and measures to guide the development of corn planting.

 

The MOA issued the Structure Adjustment Plan on Corn Planting Area in Sickle-shape Region (2016-2020) in Nov. 2015, which points out to reduce by more than 3.33 million ha (50 million mu) corn planting area in the sickle-shape region and to focus on developing silage corn and soybean.


The MOA also issued the China Agricultural Outlook Report (2016-2025) in April 2016, which mentions that the planting area of corn will be reduced to 34.41 million ha by 2020, 9.69% lower if compared with the one of 2015.

 

Reducing the planting area of corn is a long-term strategy of China. In 2016, the Chinese government officially canceled the purchase policy of corn for temporary storage, one important reason for which is the high inventories of corn in China. It is estimated that China's corn inventories have hit 250 million tonnes, resulting in massive financial expenditures and wasted inventories. Reducing the planting area of corn is the first step of cutting down the inventories.


At the press conference held by the MOA on 5 May, 2016, Yu Xinrong, Vice Minister of the MOA mentioned that China would cut down the planting area of corn by over 1.33 million ha (20 million mu) in 2016. CCM predicts that reducing the corn planting area is going to be the focus of China before the inventories are completely consumed.


* This article comes from Corn Products China News 1605, CCM




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