Comments:
Ensure the effective supply of grain and expand the production capacity of soybean and oil. The opinions pointed out that it is necessary to strictly assess the responsibility system for food security to ensure that the sown area of grain is stable and the output remains above 1.3 trillion kg. Under the influence of the repeated covid-19 epidemic and the uncertainty of the international environment, it is very important to ensure the national food supply. Considering China’s high dependence on soybean import and the wide application range of oil crops such as soybean in feed, vigorously implementing the soybean and oil production capacity improvement project can reduce the dependence on foreign countries to a certain extent and effectively improve its own food supply capacity. At the same time, in order to do a good job in China’s grain production and important Shenzhen Agricultural Products Group Co.Ltd(000061) supply, the opinions proposed to ensure the “vegetable basket”
Product supply and long-term support policies to stabilize pig production; Appropriately raise the minimum purchase price of rice and wheat, stabilize the subsidy policies for corn and soybean producers and rice subsidies, and effectively protect farmers’ grain income.
Firmly hold the bottom line of not returning to poverty on a large scale and promote China’s agricultural development to make progress while maintaining stability. 2020 is the year for China to fight a decisive battle against poverty and build a well-off society in an all-round way. China has No. 1 central document issued in 2022, and has adopted a sound monitoring and assistance mechanism to promote the continuous increase in poverty relief, increase support for the rural revitalization, support the county and the relocation of the centralized resettlement areas, and promote the effectiveness of the aid policy in the poverty alleviation area. Ensure that China’s agricultural production is stable and increased, farmers’ income is steadily increased, and rural areas are stable and peaceful.
Vigorously promote the tackling of key agricultural core technologies such as seed sources, and improve the comprehensive competitiveness. In terms of cultivated land, the opinions proposed to implement the same responsibility of the party and government for cultivated land protection and strictly abide by the red line of 1.8 billion mu of cultivated land. At the same time, we will increase investment through multiple channels, build 100 million mu of high-standard farmland in 2022, and build a cumulative area of 400 million mu of efficient and water-saving irrigation; Fully implement the action plan for the revitalization of seed industry; We will vigorously promote the tackling of key agricultural core technologies such as seed sources, and carry out the pilot of subsidy after the R & D and promotion of major varieties. Increasing the R & D strength of seed industry and promoting the improvement of core technology level such as seed source can effectively ensure China’s grain supply on the one hand and effectively improve the comprehensive competitiveness of China’s grain industry chain on the other hand.
Focus on Rural Revitalization and promote rural construction and governance. Document No. 1 of 2022 places Rural Revitalization in an important position and promotes rural development through industry by continuously promoting the integrated development of rural primary, secondary and tertiary industries and vigorously developing county industries to enrich the people. In addition, the opinion focuses on actively and steadily promoting rural construction and rural governance, expanding investment in Rural Revitalization and strengthening financial services for rural revitalization, so as to promote the stable and healthy development of Chinese villages.
Investment strategy: under the guidance of the opinions, it is expected that the production capacity of major oil crops such as soybeans in China is expected to continue to increase. At the same time, increasing R & D investment in seed sources and other agricultural core technologies is expected to further promote China’s grain competitiveness. In addition, the opinion emphasizes that China’s agriculture is expected to achieve stable and healthy development by adhering to the bottom line of no large-scale return to poverty and promoting rural construction and governance. It is suggested to focus on leading enterprises such as seed industry and breeding.
Risk tips: policy implementation is not as expected, natural disasters, large-scale epidemic outbreaks, etc.
