Currently frozen north south agricultural drought resilience of climate-induced response, and once again outline the disaster from every market for agricultural products will rise to melancholy. Recently, affected by the frozen south, once in charge of strengthening the system of the potential market basket for rapid decline of agricultural prices, a push the prices up again the potential, and drought in the north of Zhengzhou is rapidly rose more than ale reminder contract.
course, bad weather, lack of agriculture-related insurance functions, and a number of years due to the local agricultural infrastructure repair, etc., do influence the supply of agricultural products to varying degrees, and demand for agricultural products is relatively stable, the cause of supply and demand of agricultural products gap, resulting in agricultural prices. To this end, we are neither difficult to understand the first document of this year's primary task is to ensure the effective supply of agricultural products, and the rural water conservancy construction and biological breeding for the right to food this year, hardest hit by the Prime Minister over the weekend to go to Henan study guide drought, stressing the importance of irrigating water in rural areas.
, however, traced, including the 2008, including almost all the prices of agricultural products mainly to inflation, in essence, is not a problem of supply and demand of agricultural products. China's current food supply and two regulatory models and food import and export quota system management system, so that the total food supply in China is unlikely to exist the impact of the problem. In 2008, China's grain prices in the international impact of a roller coaster in almost stays on.
Therefore, some simple ideas to put the potential of natural disasters cut food prices continued to rise as property rights, or even the reasons for inflation, in fact, did not go into the nature of the reasons behind rising food prices. We believe that the current drought disaster south frozen North is more under braking for the excess liquidity, inflation provides a discharge port at the same time, inflation in food prices is only the manifestation, rather than the cause of inflation. Is the essence of inflation relative to market demand, the excess money supply. Obviously, with increasing supply, especially with strong seasonal cycle to increase food supply, not to tighten monetary elimination of excess money supply and interest rates the way the exchange rate reform, not only to higher food prices will curb inflationary pressures in the main, and its implementation costs will be high, even as far as water puzzled thirst, such as in-season it is difficult to increase supply of agricultural products.
In addition, the present, including rural water conservancy construction of agricultural infrastructure, including state of disrepair, the farmers off-farm employment, reduced ability to resist risks of agricultural and rural finance through formal financial institutions to enter the non-farm areas and so, in essence, is the failure of agricultural price signals lead to the passive extrusion of agricultural resources. That is a long time, led by food prices to ease inflation pressure, the departments concerned to continue to control agricultural prices artificially weakened the financial resources of agriculture on the adsorption capacity of the economy, but agriculture can not be effectively adsorbed economic and financial resources, not only hinder the farmers on agriculture resources into production, weakening the unit output value of farmland, and to make it more difficult for agriculture by improving its economic and financial resources into the situation of weak capacity to resist risks.
first document of this year hopes to strengthen water conservancy construction and protection of biological breeding for agricultural products, while the government plans to 4 trillion yuan investment to completely alleviate the agricultural infrastructure is weak, the situation of lack of capacity to resist risks. Incentives to guide this policy does play a role, however, still need to form farmers coming into the market of production conscious act, in order to fundamentally solve the three rural problems.
After all, farmers, food inflation carrying heavy urban containment, agricultural input and output should be less than effective in protecting farmers and village collectives naturally there will be no incentive to increase investment in agriculture to solve the last mile of the building, even with the government's preferential policies to support. This means that agricultural input and output elements of disproportionate resources in rural areas caused by the conversion of negative flock to the efficiency of agriculture is bound to wash away the infrastructure to increase the working efficiency of investment.
Thus, the current food prices is the root cause of excess liquidity, which requires leveraging monetary policy. Government support for agriculture, poor infrastructure and agriculture to improve the ability to resist risks weakening the situation, the key is to reform the current grain circulation system, so that upward pressure on agricultural and labor costs to food prices to moderate transmission, which means using market-oriented to enhance the level of agricultural input and output, and guide the market capital into the agricultural sector, investment in agriculture to provide the enthusiasm of farmers.
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