The Influences Of Overseas Farmland Investment On Food Security Of China

Although the productivity of Chinese's food continues to grow,China's food security is faced with the dual challenges of demand and supply.The adjustment of industrial structure and dietary structure have resulted in higher food demand.Along with the advancement of urbanization,a large number of production resources have been withdrawn from agricultural industries.Farmland disappeared,and the agricultural population has been separated from agricultural production.At the same time,the agricultural ecological environment has deteriorated,and the quality of farmland has degraded.China's persistent and stable supply of grain is facing new enormous risks.In the short period,making full use of overseas agricultural resources has become an important measure of ensuring food security.With the advancement of globalization and the advancement of science and technology,more and more countries have joined the global tide of overseas farmland investment.China is a country that uses overseas farmland investment to ensure food security for quite a long time.Overseas farmland investment can achieve the expected goal,that is,to achieve the important goal of ensuring food security.The article first analyzes the origin,driving force,investment scale and distribution regions of overseas farmland investment,and then combines the views of research institutions and scholars for large-scale overseas farmland investment to emphasize the importance,necessity and current opportunities and challenges of overseas farmland investment.Integrating the latest international research results,this article expands the traditional concept of food security,pays more attention to the connotation of food security in terms of quality,stability,and utilization on a quantitative basis and establishes a new food security evaluation system.Based on this evaluation system,the impacts of overseas farmland investment on China's food security,including the impact of supply,demand,and price,has been included in the research.The main conclusions of this paper are as follows.First,the main factors affecting China's food supply are as followed.Based on the research contribution of scholars,the research screened sown area of grain,agricultural disaster area,the electricity consumption in rural areas,the total power of agricultural machinery,the amount of chemical fertilizer,the amount of pesticides applied,the number of people in grain production,and the effective irrigation area,which are likely to affect the food security in China.This article conducts rigorous regression analysis and elimination for the possible impact factors and we believe that the main factors affecting China's domestic grain production include the sown area of grain,agricultural disaster area,and the effective irrigation area.Other factors have no significant impacts on China's grain production.Second,large-scale overseas farmland investment has had a major impact on food imports.Since 2005,the food imports of investment countries have increased significantly.The net effects of the large-scale overseas farmland investment on food imports are 2.6% for wheat,2.8% for corn,2.5% for soybeans,and 7.3% for rice.Second,the impact of large-scale overseas farmland investment in food imports has changed at different stages.Although the net effect has been increasing since 2005,the net effect difference between 2005-2011,between 2012-2014 and between 2015-2017 are gradually getting smaller,which indicates that overseas farmland investment may have its periodicity and be affected by global food market.Compared with wheat,maize,and soybean,rice has a higher coefficient of effect on rice import amount.This means that overseas farmland investment is more likely to have an impact on rice import.The domestic prices of China's major food crops,including wheat,corn,soybeans,and rice,have a significant linkage effect with their corresponding international food prices.Further,this linkage effect has an asymmetry in price increases and falls.Among them,the domestic prices of wheat,corn,soybeans,and rice should respond more sensitively to the rise in international food prices.At the same time,the increase in global food supply caused by overseas farmland investment and the increase in food imports by investment countries have a significant buffer effect on this linkage effect.The important enlightenments from the research include:(1)The significant impact of the international food market on China's domestic grain market reveals that it is necessary to pay close attention to the dynamics of the international grain market and master the law of the operation of the international grain market to ensure China's food security.(2)Forming a sound overseas farmland investment security system is at urgency nowadays.From the experience of overseas cultivated land investment in developed countries,the economic management department generally attaches great importance to the foreign investment of domestic enterprises,especially in Japan,South Korea,and the countries with low food self-sufficiency rate have established the system that is relatively perfect and practical for their overseas farmland investment strategies.(3)Drawing on the experience of overseas investment in overseas farmland,it is imperative to form a sound overseas guarantee system.The overseas investment guarantee system refers to the political risk that the capital exporting country government may encounter against the overseas investors of the country,providing guarantees or insurance.After the investor applies for insurance from the domestic investment insurance institution,the investors will get more guarantee.If the political risk of underwriting occurs and the investor suffers losses,the domestic insurance institution will compensate for the loss.It is one of the important legal systems for international investment protection.