China set to increase corn acreage in 2021

China is set to increase the area sown with corn in its main grain regions this year.

This was disclosed by the newly appointed Minister of Agriculture and Rural Affairs, Tang Renjian, who said the expansion is part of a comprehensive plan to ensure food security.

Authorities will focus on expanding corn acreage in the northeast as well as areas around the Yellow, Huai and Hai rivers, Tang said in an interview with newsmen on Sunday.

The pledge comes after China’s corn prices soared to record levels after authorities nearly emptied once-mammoth temporary reserves at auctions. Importers have brought in record volumes of grain to plug the shortage.

“Corn acreage and output is expected to recover and increase, while corn prices will probably fall in the next few years,” said Meng Jinhui, senior analyst with Shengda Futures.

China had been cutting down on corn acreage in the past few years to whittle down the state stockpiles and to boost output of other crops like soybeans.

According to the National Bureau of Statistics,  farmers planted 41.264 million hectares of corn in 2020, with output of the grain at 260.67 million tonnes,

Authorities must also make sure that the acreage of double-crop rice that expanded in southern regions in 2020 does not decline this year, while the yield must improve, Tang said.