Government to Increase Oilseed Crop Subsidy

By CnAgri2012-11-14 10:39:49 Print

As grain production generates more returns than oilseed production, farmers have kept enlarging grain acreage in recent years at the cost of oilseed acreage.

    It is rumored that the Ministry of Finance intends to increase oilseed crop subsidy. The proposed solutions are two: First, increasing the subsidy for the use of fine seeds from RMB150/hectare to RMB600/hectare; Second, giving farmers cash subsidy in the link of oilseed procurement. Whichever solution the government adopts, the key issue is whether the subsidy can reach farmers’ hands without being misappropriated by local governments. Considering the limited amount of the subsidy, the policy may have a limited impact on soybean production.

From “China Oil and Oilseeds Market Weekly Report”