China’s soybean acreage will increase by 400,000 hectares this year as a result of a government-led initiative to increase the supply of domestic soybeans. Yu Xinrong, vice-minister of agriculture, told a news conference Thursday [5 May 2016] that a survey of farmers’ planting intentions indicated that the corn acreage in China will decrease by close to 1.33 million hectares. This is noted as the first decreasing year of corn acreage in 13 years…Full Article: May 2016

Key Point

  • According to the Deputy Director of the Central Rural Work Leading Group (a rural affairs agency), similar to corn, China will eventually end its price support program for wheat and rice sometime in the future.

ChinaAg Comments

  • By 2020, China hopes to be cultivating at least 9.3 million ha of soybeans (equal to roughly 2012 and 2013 levels).
  • In April 2016, China’s Ministry of Agriculture announced it would increase soybean production at the expense of corn production. The Ministry of Agriculture also noted that soybean production will be promoted on farmland that has historically grown soybeans (e.g. Heilongjiang Province).
  • In November 2015, China announced plans to cut its corn production by 3.3 million hectares across 13 provinces/regions by the end of 2020. This decline in area will cut production by approximately 25 million MTs. According the Deputy Director of China’s Crop Production Department (under the auspices of the Ministry of Agriculture), the major corn producing regions of Liaoning, Jilin and Heilongjiang will see the largest declines in production area, while Shanxi, Shaanxi, Gansu, Guizhou and Yunnan will also be affected somewhat.
  • In September 2015, China decreased its corn purchasing price for state reserves by 10.7%, marking it the first decline since price support measures would introduced in 2008.
  • In 2013, China cultivated soybeans on 9.2 million ha of land. Heilongjiang Province was China’s largest soybean grower, accounting for 2.5 million ha or 27% of the country’s total sown area.
  • From 2003 to 2013, corn production in China’s northeast (e.g. provinces of Heilongjiang, Liaoning, and Jilin) increased from 6.3 million ha to 11 million ha.
  • In 2008, China instituted a corn price subsidy program.
  • In 1996, China became the world’s largest net soybean importer (~1 million MTs).

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