Page 168 - 2022 White Paper on the Business Environment in China
P. 168
2 White Paper on the Business Environment in China
Soybean Imports Agriculture Insurance
China’s appetite for US soy drained silos to The Chinese central government raised subsidies
the point that American processors worried in for agricultural insurance premiums in more
early 2021 that they would have to import beans pilot areas in 2021 to follow international rules.
in 2021. The rising demand from China meant Subsidies are provided to crop-growing farmers
American farmers needed to plant more corn who buy full-cost insurance or income insurance.
and soy, AgResource analyst Dan Basse said. The former covers various costs of agricultural
“We’re looking at planting every arable acre, and production, including seeds, land and labor, and
it’s still not enough to meet demand” (Hirtzer losses from natural disasters. And the latter covers
et. Al). China's soybean planting area in the year losses due to price and output fluctuations. The
from 2021 to 2022 was estimated to reach 9,347 application scope of two types of agricultural
thousand hectares, a decrease of 5.4% compared insurance relating to planting rice, wheat and corn
with 2020 (GT). The main reason for the decrease was expanded to cover 500 counties with high crop
in soybean planting was the rising strengths of yields in 13 major grain-producing provinces. For
corn planting, making some soybean farmers swift the expanded insurance pilot, the central and local
to growing corn. In the main soybean producing governments increased fiscal subsidies toward
areas of Northeast China, the natural conditions premiums. Provincial governments will pay no
are suitable for growing soybeans, and the yield lower than 25%. And 45% of premiums will be
will likely steadily increase. The yield of soybeans from the central government's budget for China's
is expected to record 1,995 kilograms per hectare, central, western and northeastern regions. Most
an increase of 0.6% over2020. Total soybean of the country's agricultural insurance premiums,
production was expected to reach 18.65 million which are measures to support the development
tons, down 4.8% from 2020. Meanwhile, China's of the agricultural industry, can be seen as the so-
demand for soybean has been going strong, in called "green box" policies under the framework of
relation to relatively stable supply, estimated by a the World Trade Organization. Full-cost insurance,
Chinese Agricultural Outlook Committee (CAOC). for example, is a type of natural disaster insurance,
CAOC also predicted that US soybean capacity in which can claim green box status. Income
new season would reach a record high, at around insurance, although it should belong to the "yellow
123 million tons. With soybean capacity reduced in box" measures according to WTO standards, only
Argentina and increased in Brazil, global soybean accounts for less than 0.2% of all agricultural
price will remain elevated due to shrinking global subsidies. For crops whose prices are basically
supply (Thomson). determined by the market, such as corn, farmers
can choose full-cost insurance or planting income
China imported a record 48.95 million tonnes insurance. For rice and wheat, whose prices are not
in the first half of 2021, up nearly 9% on the year fully liberalized, farmers are advised to choose full-
as hog herds recovered from a deadly disease cost insurance (Liu).
outbreak and top producer Brazil shipped a
record crop. But China's soybean imports slowed Farming
sharply in late 2021 from a record first-half tally,
confounding expectations for sustained growth To promote integrated urban-rural development,
from the top global buyer and denting market Beijing deepened supply-side structural reform
sentiment just as US farmers looked to sell their in the agricultural sector in 2021 to build a solid
new crop. A collapse in hog sector profitability and foundation for accelerating the modernization
a sharp rise in wheat feed use crimped demand of agriculture. Beijing will give full play to the
in China. As China accounts for 60% of global capital's advantages in scientific and technological
soybean imports, its diminished appetite - just as innovation to support agricultural development.
US farmers pull in what is projected to be their The per capita disposable income of rural residents
third-largest harvest ever - added further volatility in the capital city increased from 20,569 RMB
to the critical crop, which rallied to nine-year highs (US$3,215) to 28,928 RMB, and 234 low-income
in 2021 (Mauire and Gu).
168
Soybean Imports Agriculture Insurance
China’s appetite for US soy drained silos to The Chinese central government raised subsidies
the point that American processors worried in for agricultural insurance premiums in more
early 2021 that they would have to import beans pilot areas in 2021 to follow international rules.
in 2021. The rising demand from China meant Subsidies are provided to crop-growing farmers
American farmers needed to plant more corn who buy full-cost insurance or income insurance.
and soy, AgResource analyst Dan Basse said. The former covers various costs of agricultural
“We’re looking at planting every arable acre, and production, including seeds, land and labor, and
it’s still not enough to meet demand” (Hirtzer losses from natural disasters. And the latter covers
et. Al). China's soybean planting area in the year losses due to price and output fluctuations. The
from 2021 to 2022 was estimated to reach 9,347 application scope of two types of agricultural
thousand hectares, a decrease of 5.4% compared insurance relating to planting rice, wheat and corn
with 2020 (GT). The main reason for the decrease was expanded to cover 500 counties with high crop
in soybean planting was the rising strengths of yields in 13 major grain-producing provinces. For
corn planting, making some soybean farmers swift the expanded insurance pilot, the central and local
to growing corn. In the main soybean producing governments increased fiscal subsidies toward
areas of Northeast China, the natural conditions premiums. Provincial governments will pay no
are suitable for growing soybeans, and the yield lower than 25%. And 45% of premiums will be
will likely steadily increase. The yield of soybeans from the central government's budget for China's
is expected to record 1,995 kilograms per hectare, central, western and northeastern regions. Most
an increase of 0.6% over2020. Total soybean of the country's agricultural insurance premiums,
production was expected to reach 18.65 million which are measures to support the development
tons, down 4.8% from 2020. Meanwhile, China's of the agricultural industry, can be seen as the so-
demand for soybean has been going strong, in called "green box" policies under the framework of
relation to relatively stable supply, estimated by a the World Trade Organization. Full-cost insurance,
Chinese Agricultural Outlook Committee (CAOC). for example, is a type of natural disaster insurance,
CAOC also predicted that US soybean capacity in which can claim green box status. Income
new season would reach a record high, at around insurance, although it should belong to the "yellow
123 million tons. With soybean capacity reduced in box" measures according to WTO standards, only
Argentina and increased in Brazil, global soybean accounts for less than 0.2% of all agricultural
price will remain elevated due to shrinking global subsidies. For crops whose prices are basically
supply (Thomson). determined by the market, such as corn, farmers
can choose full-cost insurance or planting income
China imported a record 48.95 million tonnes insurance. For rice and wheat, whose prices are not
in the first half of 2021, up nearly 9% on the year fully liberalized, farmers are advised to choose full-
as hog herds recovered from a deadly disease cost insurance (Liu).
outbreak and top producer Brazil shipped a
record crop. But China's soybean imports slowed Farming
sharply in late 2021 from a record first-half tally,
confounding expectations for sustained growth To promote integrated urban-rural development,
from the top global buyer and denting market Beijing deepened supply-side structural reform
sentiment just as US farmers looked to sell their in the agricultural sector in 2021 to build a solid
new crop. A collapse in hog sector profitability and foundation for accelerating the modernization
a sharp rise in wheat feed use crimped demand of agriculture. Beijing will give full play to the
in China. As China accounts for 60% of global capital's advantages in scientific and technological
soybean imports, its diminished appetite - just as innovation to support agricultural development.
US farmers pull in what is projected to be their The per capita disposable income of rural residents
third-largest harvest ever - added further volatility in the capital city increased from 20,569 RMB
to the critical crop, which rallied to nine-year highs (US$3,215) to 28,928 RMB, and 234 low-income
in 2021 (Mauire and Gu).
168
