Saturday, April 15, 2017

China Corn Subsidies Distributed to Farmers

Corn producer subsidy payments are being distributed to farmers in northeastern China. An informational bulletin assures farmers that they can expect payments soon as local authorities complete the procedures and disburse payments that vary from 130 to 200 yuan per mu.
Farmers check subsidy distribution list 

The corn producer subsidy is being issued in two batches. The first disbursement of 30 billion yuan ($4.35 billion) has already been distributed and the second batch of 9 billion yuan ($1.3 billion) is in process. Jilin, Liaoning, and Inner Mongolia have disbursed the second batch of funds to local governments, but Heilongjiang is still processing and verifying information. The first batch of subsidies was estimated to be 135 yuan per mu, on average, and the second batch 40 yuan per mu. Local authorities deducted 10 percent from their corn subsidy fund allocation (10% of 30 billion yuan) to use for a crop planting structural adjustment program. The amount of the subsidy per mu of corn planted is calculated by each local government, so it varies from place to place.

According to the bulletin, Inner Mongolia's Chifeng Municipality has distributed 202 yuan/mu (equal to about $178 per acre) for the two subsidies combined to its 520,000 corn producers. Jilin Province is verifying the subsidy fund allocation to cities based on a formula that gives equal weight to area and output of corn. Farmers in Yushu Municipality are expected to receive 160 yuan/mu ($141 per acre). The highest subsidy in Jilin Province is 209 yuan/mu in Gongzhuling Municipality, and the highest in Liaoning is 200 yuan/mu in Huludao Municipality's Nanpiao District.

Rural households, family farms, farmer cooperatives, and "outside entities" renting land to grow corn on legally approved land are entitled to a corn producer subsidy. There are several instances where the subsidy will not be paid:
  1. Corn planted on land that is not designated as "cultivated land", i.e. corn planted on land designated for forest, as grassland or wetland.
  2. Corn planted on land placed in a "grain for green" land retirement program to convert farmland to forests or grassland.
  3. Corn planted on cultivated land that has been requisitioned by the government with compensation paid to farmers (farmers have resumed planting crops without permission on some requisitioned land that is unused because the development project has not started.)
  4. Corn planted on rented land for which there is no signed rental agreement specifying which party is entitled to subsidy payments.
A second bulletin explains the subsidy process. Farmers had to apply to their village committee to receive the subsidy. The village committee compiled information from their village members and passed it up to the township agricultural officials who compile it again and publicly post subsidy applicants and their reported area for at least 7 days. If no one raises objections, the information is compiled and verified again and delivered to the county financial bureau.

The central government disburses a set amount of funds in two batches to each of the four provinces where the program operates (see table below). The provinces then allocate funds to municipalities and counties based on the data submitted by farmers. Each locality calculates the subsidy per mu of land and disburses it to special electronic bank accounts for each farmer accessible with a bank card.

2016/17 corn producer subsidy funds disbursed to Chinese provinces (million yuan)
First batch
Second batch
Inner Mongolia
see: and

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