Detail

China (Mainland)

Oilseeds, oils and meals

Soybeans, maize

01/05/2018

Production

Agricultural policy

Confirmed that farmer support programmes in Heilongjiang, Inner Mongolia, Jilin and Liaoning – aimed at encouraging crop rotation in favour of soybeans, land fallow and maize stock disposal – would remain in place during 2018/19.

Government sources confirmed that agricultural support programmes providing farmers in the country’s north-eastern soybean growing provinces (Jilin, Heilongjiang, Liaoning and Inner Mongolia) with higher subsidies for planting soybean than for growing maize will remain in place during 2018/19 (see also MPPU June/July/Oct./Dec.’17 & Mar.’18). The support programme, which will cover about 2 million hectares in total, is aimed at encouraging crop rotation (with acreage shifting from maize to other crops, especially soybeans) and land fallow – amid efforts to reduce the country’s burdensome maize stockpile. According to observers, however, based on prevailing domestic prices, profits from growing maize could still be significantly higher than those from soybean – even allowing for increased soybean subsidies.