Advantages and disadvantages of government subsidies for chemical fertilizers

Recently, the news that the Yulin government subsidized the use of chemical fertilizers to protect the spring crops caused heated debate among people in the agricultural capital industry. The Yulin municipal government took out funds from coal mines to feed back the agriculture, so that farmers engaged in agricultural plantings purchased fertilizers that were lower than market prices. There are different opinions in this industry.

Party A's government subsidies to farmers to benefit the fertilizer market is not the off-season, the peak season is not prosperous, the current situation of ups and downs has caused agricultural dealers to endure the hardships, but also to break the farmer's fat habits. The high prices of agricultural materials and the low benefits of agricultural products also make farmers particularly cautious when purchasing chemical fertilizers. More and more farmers who appreciate the fact that they are not making money are choosing to go out to work and put pressure on agricultural production. The Yulin Municipal Government grants farmers fertilizer subsidies. On the one hand, local farmers can always purchase fertilizer products at lower than market prices. On the other hand, they can maintain the overall stability of the local fertilizer market prices and further mobilize the enthusiasm of farmers for planting.

The government subsidizes chemical fertilizers, through unified bidding and procurement, and unified distribution, ensuring that farmers can use safe chemical fertilizer products while effectively eliminating fake and shoddy products from entering the local market. The role of safeguarding fertilizer supply and stabilizing fertilizer prices is also very obvious. Yulin’s subsidies for fertilizers can effectively mobilize farmers’ planting enthusiasm by allowing them to purchase low-priced fertilizers.

The mode of operation of Party B reversed the government-subsidized fertilizer to a certain extent, restored the business model during the period of planned economy, restricted the free choice of agricultural products by farmers, and hindered the promotion of enterprise products in the local area, making it even more difficult for the local self-employed individuals.

With respect to supply protection, with the rapid development of the fertilizer industry in recent years, the overcapacity of nitrogen and phosphate fertilizers has been increasing year by year, and the supply exceeds the demand. Even if the government does not purchase products in a unified manner, distribution companies and distributors will also be able to protect the local fertilizers. supply. In terms of product quality, there will be competition in accordance with market-oriented operations. There will be survival of the fittest and the quality of fertilizer products welcomed by farmers and market sales will always be the best. In terms of prices, the prices of chemical fertilizers that operate in the market have fluctuate unavoidably. However, when the supply is adequate, low fertilizer prices are inevitable. This means that there may be cases where subsidized fertilizer prices are higher than market operating prices.

With the rapid development of the chemical fertilizer industry, companies now sell fertilizer products to farmers and also bring targeted agrochemical services to farmers. After the Yulin government unifiedly purchased chemical fertilizers, although the local agricultural department would bring farmers technical services to the farmers, the lack of understanding of the products and the agitation of agricultural techniques made the agricultural sector's agricultural technical services far less than those of fertilizer manufacturers and distributors. Comprehensive services or more in line with the needs of farmers. After the marketization of chemical fertilizers, in order to compete for Yulin market, various manufacturers will continue to introduce new fertilizers suitable for the local climate characteristics and planting structure. The drawbacks of the government's unified procurement of chemical fertilizers are obvious.

Agricultural distribution enterprises and distributors are an indispensable team in the marketization of agricultural capital. They act as a reservoir for agricultural capital and also solve employment problems for a certain number of citizens. What should have been done by distribution companies and distributors was for the government to do, which was unfavorable for maintaining local community harmony. Therefore, when the government gives subsidies to farmers, it should send subsidies directly to farmers' accounts, allowing farmers to go to dealerships to purchase corresponding agricultural products in accordance with their own needs.