Wednesday, June 13, 2018

Q&A on China's Corn Subsidy

China's corn farmers can expect to continue receiving their subsidy payments in the future as subsidies tied to acreage planted in specific crops become one of China's main subsidy strategies, according to a recent online article posted on numerous agricultural news sites in China. It is clearly tied to the amount of corn grown, unlike the first round of grain subsidies that began in 2004.

The article provided answers to 10 questions to help farmers understand the corn subsidy payment.

1. Will this be the last year for the corn subsidy?
A: This is the third year of the subsidy's 3-year trial, but it is likely to continue in future years. Indeed, it may become a common subsidy measure that covers all crops (it already covers corn, soybeans, and rice).

2. When is the land area for the corn producer subsidy verified?
A: Each year by June 30. The subsidy funds are distributed by September 30.

3. How much is the subsidy?
A: The amount varies by province and year. During 2016, Heilongjiang had a province-wide corn producer subsidy of 153.92 yuan/mu; in 2017 it was 133.46 yuan; and it is rumored to be cut to 100 yuan or less in 2018. Jilin, Inner Mongolia, Liaoning Provinces have subsidies that vary by county.

4. What regions are covered by the corn producer subsidy?
A: Counties and municipal districts where corn is grown in the three northeastern provinces (Jilin, Liaoning, Heilongjiang) and Inner Mongolia.

5. Are the corn producer subsidy and the cultivated land fertility subsidy the same?
A: No. Corn producer subsidy recipients are producers with land actually planted in corn. Land fertility subsidy recipients in principle are those engaged in growing grain crops, including rural people, state farms, forestry districts, and state farm employees. For contracted cropland that is transferred or subleased, in principle the subsidy is given to the contracting household.

6. Who gets the corn producer subsidy?
A: Producers who legally grow corn on cultivated land, including local farmers, family farms, farmer cooperatives, and outsiders who legally rent land. For land transferred, subsidy funds must be given to actual corn growers.

7. Is the subsidy paid for land planted in corn for silage or corn as a vegetable (sweet corn)?
A: Not corn for silage, but sweet corn is covered by the subsidy this time.

8. What is the basis for determining a farmer's subsidy payment?
A: The area of cultivated land planted in corn during the current year.

9. If a contract to transfer land has been signed but does not specify who gets the subsidy, what happens?
A: It is suggested that the two parties negotiate a settlement according to law.

10. If I have transferred my land to another party this year, does my land area have to be verified again next year if I take my land back?
A: The area planted in corn must be verified each year.

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