The "target price" subsidy in Xinjiang will be mostly distributed according to the amount farmers sold by the end of January 2016 at a rate of 1.99 yuan/kg. Some special cotton got a higher subsidy of 2.58 yuan/kg. Farmers in southern Xinjiang got a subsidy of 141.75 yuan/mu.
Only a few other provinces have announced their cotton subsidy for this year.
- Shandong reduced its subsidy to 150 yuan/mu for the 2015 crop, down from 235 yuan last year.
- Hebei Province raised its subsidy to 201 yuan/mu, up from 164 yuan/mu last year.
- Henan Province's subsidy is 140 yuan/mu, slightly higher than last year.
According to official statistics, cotton planting was down 10% in 2015 and output fell 9.3%. Cotton production is down 18% since 2012. Some industry people think production has fallen faster than official statistics indicate.
This year, Shandong farmers say the subsidy doesn't make up for the loss in revenue from falling prices. A November survey indicated Shandong farmers intend to plant 7.1% less cotton this year. That comes after a 34% decrease last year. Henan's planting intentions are down 8.9%.
The National Bureau of Statistics reports that 62.5% of cotton production is now produced in Xinjiang.