Cotton Subsidy: "Fill The Head" Or "Make Bricks"?

< p > from the perspective of policy objectives, < a href= "//www.sjfzxm.com/news/index_c.asp" > cotton < /a > storage and purchase is the same as target price subsidy system, all in order to protect cotton farmers' planting enthusiasm and income level.

The difference between the two is that the target price subsidy system has less side effects and is more realistic.

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< p > when cotton prices are low, which affects cotton growers' enthusiasm for planting, under the target price subsidy system, the government only needs to pay farmers, and farmers will settle accounts and continue to grow cotton.

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< p > compared with the precise and relative independence of the target price subsidy system, the cotton purchasing and storage system has more impact on the market itself, and more impact on the operation of the market itself. For the realization of the goal of protecting the cotton farmers' income < < a href= > //www.sjfzxm.com/news/index_c.asp > policy > /a, more pformation process is needed.

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< p > under the cotton purchase and storage system, if the price of cotton is low and the government thinks it will affect the stability of cotton planting, the government designated cotton purchasing and storage enterprises will enter the market to buy the market.

In the ideal state, there will be a collection and storage enterprise supporting the market, and other cotton purchasers will also follow up the price, and farmers' enthusiasm and income will be protected.

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< p > but in actual operation, the purchase and storage has become an exclusive acquisition, and the acquisition and storage enterprises are open to purchase. < a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > factories and other cotton enterprises do not follow the price adjustment.

Cotton enterprises are more eager to pursue cheap cotton in the international market.

The domestic price of cotton has become the price of purchasing and storing, and the government has once again become the price maker.

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< p > in fact, in the government subsidy system for the disadvantaged industries, there has always been a debate about "making up the head" or "making bricks".

The so-called "fill the head" is who is damaged and who is subsidized; the "brick" is the government to give the subsidy to the market institutions, and requires the government to carry out the protection of the government, in some cases means to cover the bricks to cover the storage of cotton warehouses.

These two practices all exist. The practice of "making up the head" is like direct subsidy for grain cultivation, and the practice of "brick filling", as in some areas in housing policy, gives developers a variety of relief in exchange for their low price houses, and the operation effect of the two policies is obvious.

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