Cotton Price System Changes And Its Impact On The Cotton Industry In Shandong

Cotton is an important economic crop in China.The industry chain is long.The cotton market conditions directly affect the interests of cotton farmers,cotton circulation processing enterprises and textile enterprises,and it also affects the operation of the national economy.Since the founding of New China,China's cotton price system has undergone several reforms.The state's management and control of cotton price policies have gone through the stages of free purchasing and selling from 1949 to 1953,the unified purchasing and unbundling period from 1954 to 1984,the contractual subscription stage from 1985 to 1998,and the open market stage from 1999 to the present.In 2011,the state began to implement the cotton purchasing and storage plan and acquired cotton according to the purchase price of cotton.Xinjiang took the lead in initiating the reform of the cotton target price reform in 2014.The price of cotton was determined by the market,and the cotton producer was subsidized by the price difference.This paper mainly analyzes the reform of China's previous cotton price system,and analyzes the impact of different price systems on the cotton industry in Shandong Province using the SCP method.Based on this,it establishes a Nerlove supply response model to set policy dummy variables,and quantitatively analyzes the effects of institutional changes on cotton production in Shandong.The following conclusions have been obtained: Firstly,The cotton market under the unified purchase and sales policy was a monopoly market for the buyer,and the various price increases and incentive sales policies of the country had a clear policy direction for cotton production.Especially in the 1980 s,Shandong's cotton production expanded and yield increased,the benefits of cotton planting were higher than that of corn and wheat in the same period.Secondly,after the market price reform of cotton prices,the prices fluctuated significantly.The cotton production in Shandong ha d been oscillated.The net profit of cotton planting had lost its advantages.The institutional changes had a positive impact on cotton area.Thirdly,the cotton sown area and output under the temporary purchase and storage system continued to decline.Compared with corn and wheat,the cash income from cotton was considerable,but the net profit was negative.Changes in the system had slowed production decline but cotton per unit area yield ha d fallen.Tourthly,Under the target price subsidy system,the price of cotton returne to the market,and the cotton production in Shandong Province continues to decline,but cotton per unit area yield continues to increase,and the cotton net profit continues to fall.The target price subsidy belongs to the "yellow box" policy and the amount of subsidy is limited.If the cotton market price is further dropped,the implementation of China's target price subsidy will be subject to more challenges,and the fiscal expenditure will also be heavier.The target price subsidy system needs to be improved.Finally,the dissertation discusses the SCP integration analysis of the impact of price system changes on the cotton industry in Shandong,and proposes the concept of deepening reform of the cotton price system and its supporting measures in light of the problems existing in the current price system.This paper puts forward two ideas,namely,improving the existing target price subsidy system and exploring new cotton price subsidy methods.This paper also proposes three supporting measures to improve the cotton subsidies information platform,improve the cotton futures market and improve the design of insurance products.