2020 Corn Planting Areas Would See a Limited Decline

Guided by the policies, the farmers in the northeast especially Heilongjiang change to grow soybean instead of corn. Corn planting areas have decreased for three consecutive years from a high in 2016. Corn planting areas decreased to 41.27 million ha in 2019, down 2% from 2018 and down 6% from 2016. However, the decline in corn planting areas would slow down in 2020.
 
In 2020, the government would stabilize corn and soybean planting areas in the northeast, and would increase corn planting areas moderately. In 2020, the subsidies for soybean in Heilongjiang would be almost the same as 2019, however, the subsidies for corn would improve moderately. The narrowing difference on subsidies between soybean planting and corn planting would be good for slowing down the decline in corn planting areas in the northeast.
 
Since March, China Grain Reserves Corporation has started to purchase grain for rotation in some areas of northeast, boosting local prices; northeastern grain traders are also optimistic about the trend of corn prices and they are more willing to stock up the goods. Grain in the hands of northeastern farmers descends quickly and sale prices ascend. Therefore, corn planting profits ascend.   
 
Along with the consuming of temporarily-stored corn stocks, corn tends to be in a tight supply, which is good for improving both corn prices and planting margins. Thanks to the predication on an increase in profits, the decline corn planting areas would slow down in 2020.