$1.5 Billion to Grain Farmers in China in an Attempt to Off-Set Rising Production Costs
The subsidies are going to support the summer harvest and autumn sowing...
The country we all see as the big bad communists have actually stepped up to the plate to help the world and its people as they’ve pledged to distribute another 10 Billion Yuan ($1.5 Billion USD) in subsidies to grain farmers. The move is done in hopes to bring down the soaring costs of production.
The subsidies are going to support the summer harvest and autumn sowing. This comes as the country looks to make sure its farmers are incentivized to keep producing food for the country. Beijing said it would provide 20 Billion Yuan from its budget to protect grain growers from prices rising. This was said in March but the latest round of said subsidies will be allocated to grain producers such as family farms, co-operatives, agricultural enterprises, and individual farmers.
Premier Li Keqiang made the announcement on his last visit to the southwestern Yunnan province.
Prices of grain in China have spiked since the beginning of the year. The challenge is that wheat and grain output has been estimated in forecasts to decline over the summer. Spring planting disruptions have led to this with tighter Covid control measures as well as the rise in troubles due to the Russian invasion of Ukraine.
Fertilizer within China has also witnessed price gains. Potash fertilizer has to be imported and has risen in price by nearly 60%. Soybeans have even been released from reserves at weekly auctions in an attempt to boost the supply. The national grain trade center said it would sell another 500,000 tons of imported soybeans from state reserves later this month.