May 12th, 2017 - China's northeastern Heilongjiang announces a new subsidy scheme to boost both maize and soybean production in the area. Soybeans are set to receive more favourable subsidies than maize in an attempt to shift production towards the former.



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Heilongjiang Provincial Government, 12-05-2017. (黑龙江省正式出台玉米和大豆生产者补贴政策)

PRC State Council, October 14, 2017. (黑龙江启动发放2017年玉米和大豆生产者补贴)

Inception date: 15 Sep 2017 | Removal date: open ended
Still in force

Production subsidy

On the 12th of May, 2017, China's Heilongjiang province, its top corn producer, announced an adjusted subsidy scheme that will see both maize and soybeans receive higher government payments. Due to an alleged local soybean shortage, the announcement mentions that soybeans will be entitled to a higher proportion of subsidy allowance than maize.

On the 14th of October, Xinhua News confirmed* that the provincial government in Heilongjiang was cutting the subsidy for producers of the crop from USD 1.56/ha to USD 1.35/ha (CNY 153.92/mu to CNY 133.46/mu).

This drop of 13% is intended to dissuade farmers from production of corn, due to current issues in the PRC with overcapacity of the crop.

*the press release was also promulgated officially by the provincial government.




Inception date: 01 Jan 2017 | Removal date: open ended
Still in force

Production subsidy

In the same release, it was confirmed that soy bean farmers would see a new 'growers' subsidy' of USD 1.76/ha (CNY 173.46/ha), a change from the previous 'target subsidy' system, which tied subsidies to market prices.

While not directly comparable, in effect this is an increase in the subsidy amount, especially when compared to the lower subsidy available for corn in the region. This is, again, intended to shift producers away from corn and towards soybeans.