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Today, food prices are soaring, and the puzzling thing is that even though we imported more than a million tons of U.S. soybeans in just seven days, more than 4,000 farms went bankrupt. What's all going on here? Is there some kind of opportunity behind it? Let's explore this mystery together.
The latest Laomei weekly sales report shows that in just one week, our country imported 1.11 million tons of Laomei soybeans. Last week, that figure was as high as 1.18 million tons. In other words, in just two weeks, we imported more than 2 million tons of American soybeans. This number is thought-provoking.
In one year, we imported more than 29 million tons of U.S. soybeans for the entire year last year. In the last two weeks, we have imported more than 2 million tons. This seemingly large number presents a more complex problem behind the data: more than 4,000 farms have gone bankrupt and closed down in the previous period. It begs the question of why farms are teetering on the brink of bankruptcy while food prices are soaring and soybean sales are growing.
Laomei's farm technology has always been quite developed, but this year's rising energy prices have led to high production costs. At the same time, many old American farms rely on loans to support agricultural production, and the Fed's interest rate hike policy has made the burden of interest repayment heavier. None of this seems to be happening on our family farms, which are more self-sufficient and sustainable, and less debt-dependent than large-scale farms.
Conversely, does this present us with new opportunities? Since the "family farm" policy was first proposed in Document No. 1 in 2013, the government has been committed to supporting development in this area. So, is it possible that your family farm will also benefit from some government incentives? Next, we'll explore this issue to help you see if you have a chance to receive the subsidy.
In addition, this year's "Document No. 1" once again clearly proposed "in-depth implementation of new agricultural management entities to improve the action", which undoubtedly injected policy impetus into family farms. So, what exactly do you need to meet if you want to apply for a family farm? Let's explore it from a land-scale perspective. If you plan to grow a traditional crop like corn, you need to own more than 100 acres of land. And if your interest lies in vegetables, fruits and other agricultural products, then more than 30 acres is enough. As for aquaculture, more than 50 acres of water are required. In short, no matter what type of agriculture you choose, the proportion of land needs to be more than 70%. This is what the government requires of family farms, and it also gives you a clearer picture of your development opportunities.
In summary, there are many complex reasons behind rising food prices and farm bankruptcy, but they also bring us new opportunities. Government policy support for family farms is intensifying, and if you're interested in getting into farming, then maybe now is the time. Don't forget to check the size of your land and the type of agriculture to see if it meets the government's requirements so that you can enjoy more incentives. Family farms will continue to usher in the wind of policy, and I hope you will seize this opportunity to create your own agricultural dreams.
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