Skip to main content

Part-Time Farmers and Price Supports

The rapid increase in wages and migration of workers to urban employment has made part-time farming the predominant mode of farm production in China. Journalists are calling it the "sideline-ization" of grain production (种粮副业化) which refers to the traditional classification of farming activities: planting grain was the main activity while commodities like vegetables and pigs were "sidelines." Now grain has become a "sideline" activity that is not very important to family income and gets accordingly little attention or priority from rural families.

A reporter who interviewed farmers in Anhui, Henan, and Hubei Provinces after the wheat harvest found that the part-time farming phenomenon is changing the way farmers sell their wheat. Farmers' time is too valuable to dry, transport and store their wheat. Instead, farmers now like to sell their wheat as soon as they harvest it to traders and brokers who come to the fields.

Villager Zheng Hailong recently sold 10,000 jin of grain to a trader at the edge of the field for about 1 yuan per jin. He told the reporter that he gets a low price selling to the trader but he can make the money back by working one day in the city.

Farmer Dong Xueyi says he hasn't sold grain to a purchasing station in several years. Farmers like to sell to traders who come to their door and don't demand high quality. Grain traders said the wheat purchase is like lightning; it's over in a few days. Farmers don't want to take time to dry and thresh their grain. They don't want to keep it for their own consumption either. They sell it all in one go.

Warehouse managers say small farmers rarely sell grain to them. The grain generally passes through the hands of 2 or 3 traders before it reaches a warehouse or mill.

The article says that this new mode of selling grain makes it harder for the government to use its minimum price policy to motivate farmers to plant grain. Most farmers don't sell grain to the grain stations that pay the minimum price and the price is not that big a motivator since grain sales don't contribute that much to family income now.

Farmer Dong says the price paid by private traders this year is .95 yuan/jin while the grain station pays 1.02 yuan (this year's minimum price) and has strict requirements on moisture and foreign matter. Dong says he will get 50 yuan less by selling to the trader but he's happy to do it.

Farmers interviewed in Anhui Province were often unaware of the minimum price and didn't care about the policy. Most farmers say they wouldn't be motivated by a price that's one or two fen higher.

Comments

Popular posts from this blog

Xi Jinping's Doctoral Thesis

Xi Jinping is the vice president and presumed next president of China but little is known about him. In this post the dimsums blog offers its contribution to the genre of Xi Jinping-ology by conveying Xi's decade-old views on agricultural markets. Ten years ago Xi Jinping wrote a thesis, "Tentative Study of Agricultural Marketization" (中国农村市场化研究) for a Doctor of Law degree at Tsinghua University in Beijing, a top breeding-ground for Chinese officials. The dimsums blogger has spent several hours poring over the 200-plus page tome to see what it reveals about Dr. Xi. The thesis is remarkably close to what China has been doing lately in agricultural policy, suggesting that Xi (or the person who actually wrote the thesis) has a major say in policy or is at least in agreement with what's being done. There is nothing adventurous, controversial (or insightful) in the thesis. It seems to be the work of a wonkish technocrat who is not prone to talk out of turn or wander from...

China's 2024 Ag Imports Shrank in Value

China's agricultural imports declined 7.9 percent during 2024 to reach $215 billion, according to data posted on the customs administration website. The 2024 value was lower than each of the 3 preceding years. Agricultural exports were up 4.1 percent to reach $103 billion. Source: Data from China Customs Administration December reports. The top two agricultural import categories by value both declined. Soybeans ($52.75 billion in 2024) fell 10.9 percent, and meat ($23.38 billion) fell 15.1 percent. Cereal grain imports ($15 billion) were down 28 percent and fish & shellfish imports ($18.5 billion) were down 6.2 percent. Edible oils imports ($10.6 billion) were down 17.8 percent. Fruit, rubber, cotton and wool and beverage imports were up for the year. The decline in value of imports partly reflected a decline in prices. Customs reported that the volume of soybean imports for calendar year 2024 reached a record 105 million metric tons, up 5.6 million metric tons from the previou...

China: Record Meat & Grain Output in 2025; Declining Farm Prices and Imports

China's 2025 agricultural production data shows meat output grew 4.2%, exceeding 100 million metric tons for the first time, while grain output grew 1.2% to 714.88 mmt. Soybeans stood out with growing imports during 2025, but most of China's other agricultural imports went down. Most agricultural prices also went down, reflecting an economy that appears weaker than the 5% GDP growth reported for 2025. Meat output growth featured 4.1% growth in pork output, 6.7% growth in poultry, and 2.8% growth in beef, according to the China National Bureau of Statistics preliminary data release for 2025 . Milk production grew marginally, and production of eggs and mutton fell. This blog previously reported the Bureau's report of a record grain harvest and 7.7-percent increase in cotton output . Trade data released by the customs administration show imports of wheat, corn and cotton plummeted during calendar year 2025. Imported soybeans rose 6.5 percent last year to 111.83 mmt, compris...