What is the grain protection price in 202 1 year?
First of all, let's talk about the "protective price". If I remember correctly, China's grain production has continued to increase in recent years. In a perfectly competitive market, if the grain output continues to increase, then its price will definitely fall. In the reality of our country, the state attaches great importance to the "three rural issues". In order to protect the interests of farmers, the state implements the "protective price" for grain, that is, the minimum purchase price of grain, which protects the interests of farmers, but violates the market rules. Originally, in a perfectly competitive market, after grain growth led to a drop in food prices, the market would spontaneously adjust the allocation of production resources, such as reducing grain planting, planting other crops, or seeking deep processing of grain to extend the production line to produce non-primary grain products. In the long-term "protective price" of grain in the country, the protective price indirectly hinders the redistribution of agricultural production resources, and the production resources still stay on grain crops for a long time, which is not conducive to the diversified and professional development of agricultural modernization. The state's total price control of grain prices also violates the system that the market determines the allocation of resources and is not conducive to the market's role. Therefore, the abolition of the "protective price" lies in giving full play to the role of the market in allocating resources and allowing the market to self-adjust the distribution of agricultural production resources in order to change the bad situation of excessive food supply and low food prices. On the other hand, at present, the downward pressure on the domestic economy is great, and the protective price of grain will undoubtedly increase the acquisition pressure of grain buyers and increase the acquisition cost. The whole national economy is an interconnected system, and protecting prices may increase the downward pressure on the economy more or less.