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Why are big farmers afraid of farming?

Release time:2018-05-21

When land circulation centralizes land, large farmers have emerged. A few years ago, some enterprises and distributors took the service of large farmers as the future development plan and the growth point of enterprise profits. They believed that as long as the service of large farmers was well done, the sales would certainly increase.
 
However, over the past few years, the actual situation is far from what everyone expected, and some distributors have begun to transform into small intensive farming households.
 
A distributor said, "Who touches the big farmers and who dies." Take northern Jiangsu as an example, two crops are planted in a year, rice, wheat or wheat and maize rotation. Local land contract price is about 1200 yuan per mu, plus seed, pesticide, fertilizer, agricultural machinery input, coupled with the employment of farmers to cultivate, it will cost at least 1800 yuan throughout the year.
 
The income of these two crops is less than 2,000 yuan when the weather is good, and the big base must be profitable, but if there are natural disasters, the more the plants are planted, the more the losses will be.
 
The distributor said: "At first, I also think serving big farmers is a way to break through sales. We actively seek to cooperate with big farmers. At first, it's good. But with the increase of competitors, big farmers begin to sell drugs on credit, do not buy goods without services, do not pay back the cost, which seriously affects the flow of funds."
 
Why did the big farmers who were highly expected by enterprises and distributors become "chicken ribs"?
 
On the one hand, enterprises, distributors and retailers are competing for terminal resources. Originally, the three should serve the big planters as a close economic stakeholder, and win the favor of the big planters with better service. However, the limited resources of the big planters make them rivals instead.
 
Enterprises should play the role of producers to produce more and better products; Channel providers should play the role of service and guide rational use of drugs around large farmers, but now the three parties have not made joint efforts, so large farmers can not make enough profits in the circulation of pesticides.
 
More importantly, with more and more enterprises and channel merchants directly intervening in the planting end at a lower price, the sales channels of terminal retail stores are constantly compressed, and the sales of products are not smooth, which has created a crisis of trust for upstream enterprises, which is more obvious in the places where large farmers are concentrated.
 
On the other hand, there are several kinds of big farmers: first, the traditional small farmers contracted land, such large farmers know certain planting technology; second, in order to cope with the shortage of labor force, these organizations are established according to the different intensive degree of cooperation forms; third, investors from outside agriculture.
 
The basic purpose of the former two is to maintain agricultural production, and have a certain understanding of agricultural production. Enterprises and channel traders should firmly grasp, but also consider risks. Such farmers generally have limited funds and low ability to cope with natural disasters. Once the capital chain breaks, it is difficult to recover in the short term. Channel traders want to cooperate with such large households, they must take into account the risk that funds can not be recovered in the short term.
 
The third group of large households, although they have some funds, invest in order to make profits. These people usually sell on credit to tie up with agricultural channel merchants or divert their original funds for other purposes. Once they fail to achieve their expected returns due to natural disasters and other reasons, they are likely to withdraw at any time. Therefore, channel merchants should be more cautious when they encounter credit sales of such farmers.

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