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Effects of China's Corn Stockpiling System Reform on Family Farms' Decision to Join Cooperatives

Effects of China's Corn Stockpiling System Reform on Family Farms' Decision to Join Cooperatives
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摘要 Reform of the corn stockpiling policy is a key initiative for advancing China's market-based grain stockpiling reform. It is a critical component of China's exploration of a price formation mechanism for agricultural products. Evaluating the effectiveness of such reform is therefore of great relevance. Based on nationwide farm monitoring data of 2014, 2015 and 2016, this paper examines the effects of the corn stockpiling reform on the decision of family farms to join cooperatives. Our finding suggests that after other factors that influence the decision of family farms to join cooperatives are controlled for, the probability of corn farms to join cooperatives in the Northeast and Inner Mongolia, where the corn stockpiling reform was carried out in 2016, is significantly higher compared with the probability of corn farms in non-reform areas that did so. The reason is that after the reform, corn producers must sell their corn to the market instead of to the State, bringing them sales problems, which could be mitigated to some extent by joining cooperatives.Thus, the corn stockpiling reform incentivized the market-based behavior of agricultural producers, giving play to the role of market mechanisms in regulating production and demand. Reform of the corn stockpiling policy is a key initiative for advancing China's market-based grain stockpiling reform. It is a critical component of China's exploration of a price formation mechanism for agricultural products. Evaluating the effectiveness of such reform is therefore of great relevance. Based on nationwide farm monitoring data of 2014, 2015 and 2016, this paper examines the effects of the corn stockpiling reform on the decision of family farms to join cooperatives. Our finding suggests that after other factors that influence the decision of family farms to join cooperatives are controlled for, the probability of corn farms to join cooperatives in the Northeast and Inner Mongolia, where the corn stockpiling reform was carried out in 2016, is significantly higher compared with the probability of corn farms in non-reform areas that did so. The reason is that after the reform, corn producers must sell their corn to the market instead of to the State, bringing them sales problems, which could be mitigated to some extent by joining cooperatives.Thus, the corn stockpiling reform incentivized the market-based behavior of agricultural producers, giving play to the role of market mechanisms in regulating production and demand.
作者 刘文霞 杜志雄 郜亮亮 WLiu Wenxia;Du Zhixiong;Gao Liangliang
出处 《China Economist》 2019年第3期114-127,共14页 中国经济学人(英文版)
基金 a result of the First-Class Discipline Development Project of Guizhou University for Agricultural and Forestry Economic Management in Guizhou Province,2017(Project No.:GNYL[2017]002) the Project of the National Social Science Foundation of China(NSS)"Summary of the Experiences of the Reform of Separate Ownership,Contract and Operation Rights of Agricultural Land in China and Evaluation of Implementation Effects"(Project No.:17BJY010) the key research project of the Ministry of Education "Study on the Separate Ownership,Contract and Operation Rights of Agricultural Land"(Project No.:16JZD024)
关键词 REFORM of the CORN stockpiling system family farms cooperatives marketbased SALES reform of the corn stockpiling system family farms cooperatives market-based sales
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