Agricultural-funded enterprises face transformation and upgrading, and they are heroes.

[China Agricultural Machinery Industry News] In 2016, under the situation of overcapacity and the market continued to slump, the agricultural industry did not have pessimism, but accelerated the pace of transformation and upgrading, aiming to surpass itself, break through the original circle and break the original model. Seek more opportunities and development space. Production companies actively participate in the development of industry standards, national standards, and even international standards to enhance product quality and improve market and international voice.

Agricultural-funded enterprises face transformation and upgrading, and they are heroes.

At the same time, the company has accelerated the pace of internationalization through the “One Belt, One Road” strategy. Production and distribution enterprises from agricultural resources to agriculture, e-commerce from agricultural resources to agricultural products, and gradually extend the industrial chain, I feel that we must base ourselves on agricultural resources, but also jump out of agricultural resources to truly do a good job in agricultural resources. The enterprise has developed and the industry can develop. As the enterprise grows bigger and stronger, the industry will become bigger and stronger, and the dream of a powerful fertilizer country can be realized. As the pace of industrial transformation and upgrading accelerates, this dream is getting closer and closer to us.

2016 is the first year of the 13th Five-Year Plan. It is the year of transformation of China's economic development model. It is a year in which the keyword “supply-side reform” is deeply rooted in the hearts of the people. It is also the adjustment of China's agriculture and even the agricultural asset industry. The year of the "big test" of the challenge. On the one hand, farmers' incomes are constrained by the “ceiling” of agricultural product prices and the “floor” increase of production costs; on the other hand, new policies such as resource tax reform, comprehensive reform of agricultural water prices, and recovery of fertilizers and VAT have allowed domestic agricultural materials to work. I am confused: how can agricultural enterprises survive in the storm? Where is China's agriculture going?

The life of agricultural resources comes from agriculture, and the stability of agriculture lies in farmers. Regardless of the price of agricultural materials, regardless of changes in industrial policies, the needs of farmers are the service and development direction of agricultural enterprises. From a small product to a strategic decision, the footsteps of agricultural companies must be consistent with the modern agricultural vision and the immediate interests of farmers. Today's Chinese agriculture calls for environmentally friendly green agricultural resources, scientifically saved fertilization and service models from sowing to sales. This voice is both a demand and a red line. Some people will stay, some will quit, and the sand smelting will know who is the hero.

Low food prices promote agricultural resource service upgrade

In 2016, the domestic grain market continued to be weak. The state-owned grain enterprises had large inventories and tight warehouses. The acquisition of various market entities in the society was cautious, which led to the phenomenon of “selling difficulties” in some major grain-producing provinces. After the rapeseed and corn were abolished, the market price per market was down by 0.9 yuan and 0.35 yuan per year, and the price of rice and wheat also fell.

The appearance of low food prices reflects the low degree of marketization of domestic grain trade and the unreasonable price formation mechanism. This year's No. 1 Document of the Central Committee puts forward "to reform and improve the price formation mechanism and storage system for important agricultural products such as grain." Specific to the reform, there are three core principles: market pricing, price separation, and protection of farmers' reasonable income. Facing the status quo of the domestic corn industry upside down, the National Development and Reform Commission has clearly eliminated the temporary corn storage policy and implemented a new mechanism of “market-based acquisition” and “subsidy”. At the same time, the relevant policies have also restricted the corn planting in the “sickle bend” area in the north, requiring the region to speed up the adjustment of planting structure.

The price of food is related to the future, and it is related to the people's security, and it is more important to the survival of agricultural enterprises. The adjustment of planting structure is not only a problem of simple reduction of corn planting area, but also related to the upgrading of agricultural industry, involving a series of topics such as farmers' continued increase in production and income, whether land circulation can continue, the transformation of large-scale plantation, and the changes in the agricultural capital market.

Looking at the northeast, crop season crops are limited in some areas, and planting habits have been formed in some areas. It is not easy to change the planting structure in a short time. In the areas where the replanting has been successful, the pattern of agricultural capital market is also facing tremendous changes. The corn was replanted into soybeans, the amount of chemical fertilizers decreased, and the sales volume of enterprise compound fertilizers decreased drastically. In North China, the farmers’ fat preparedness is low, and the procurement peak is pushed back. Because of the low food prices, it seriously affects the enthusiasm of farmers to plant land. Many farmers have procured low-cost fertilizers to cope with the situation, and the living space for fake and inferior fertilizers has expanded. Small enterprises frequently “run the road”, which has led to an increase in the financial risks of agricultural enterprises.

The food price is low, the agricultural capital market is sluggish, and agricultural production enterprises and distributors are facing transformation and upgrading. They must adapt to new changes, strengthen the service awareness of enterprises, and change from traditional commodity sales to service output to provide farmers with full-scale solutions.

At present, new agricultural entities such as agricultural cooperatives and large planters are constantly replacing traditional farmers as the main force of agricultural production. They need agricultural products, and they need agricultural product sales channels and more real market information. Agricultural companies that are entangled in how to achieve service upgrades may have ushered in a new period of development opportunities.

New policy guides industry transformation and development

The agricultural capital market is becoming more and more market-oriented, leaving special policies. Some enterprises have weathered the wind and the waves, and some enterprises have ran rampantly. Where is the direction of the industry? Where is the mainstream of the industry going? Agricultural enterprises need policy guidance. In the first year of the "Thirteenth Five-Year Plan", the national agricultural policy and the agricultural asset industry policy were released and implemented in a concentrated manner, which is undoubtedly the use of top-level design to point out the path of scientific development for China's agricultural asset industry.

In January 2016, the General Office of the State Council issued the "Opinions on Promoting Comprehensive Reform of Agricultural Water Price" by the State Council issued [2016] No. 2, proposing to establish a sound and reasonable reflection of water supply costs, water saving and farmland water conservancy in about 10 years. Institutional mechanism innovation, agricultural water price formation mechanism that is compatible with investment and financing systems. In June, the “Regulations on Farmland Water Conservancy” was officially announced, which stipulated that the irrigation water for farmland should be combined with the system of total amount control and quota management. It should be clarified that the irrigation water for farmland should be reasonably determined, the paid use, the metered fee, the market mechanism and the water price policy. Promote agricultural water conservation. The "Regulations" also propose to implement planned water use within the irrigation area, strengthen water quality monitoring of farmland irrigation water, prevent agricultural non-point source pollution, and encourage the promotion and application of water-saving irrigation techniques and measures.

Soil is the foundation of agriculture, and water is the foundation of agriculture. Today's Chinese agriculture, "water" and "fat" are two hot topics that are related to Hume. "Opinions on Promoting Comprehensive Reform of Agricultural Water Price", Jianfeng directly refers to the agricultural water sector with low level of scientific utilization, widespread waste, and serious threat to sustainable agricultural development. The industry believes that the advancement of agricultural water price reform is bound to bring significant benefits to water and fertilizer integration related enterprises. Vigorously promote water-saving irrigation technology such as tube irrigation, sprinkler irrigation, micro-irrigation, integrated development of water and fertilizer integration technology and agricultural machinery and water-saving technology, will quickly pull the demand for water-saving equipment, irrigation facilities manufacturers have huge room for development.