We are all reborn, who wants to be the richest man?
Chapter 557 Agricultural Reform Achievements
Nanwu Agricultural Group, an agricultural company that was established only a year ago, is now the largest agricultural enterprise in Ermao.
In June last year, Ermao began agricultural reforms, introduced foreign capital, and established this agricultural giant spanning five southern states: Moldova, Odessa, Nikolayev, Kherson, and Zaporizhia.
Now that more than a year has passed, it is time to test the results.
Zaporizhia is the main wheat and sunflower seed producing area in Ermao. The sunflower seed harvest is not yet known, but the golden wheat waves in the wheat fields accompanied by the breeze indicate that this year will be a bumper harvest.
Ermao's wheat and rapeseed are planted in September and harvested in June and July of the following year, which is different from crops such as corn and barley that are planted in April and harvested in September.
So now is the harvest season for wheat and rapeseed, and Kravchuk, who regards this reform as his most important achievement since taking office, naturally does not want to miss it.
So he came to Zaporizhia on June 6th and came to the Chekhov Farm, the largest farm of the Southern Ukrainian Agricultural Group in Zaporizhia.
The Chekhov Farm covers an area of 101 square kilometers, which is almost one-thirtieth of the land area of Zaporizhia.
This farm was not so big at the beginning, but was the result of the merger of more than a dozen large and small farms in the surrounding area after the reform.
As Ermao State-owned Assets holds a 35% stake and is the largest shareholder representative of the Nanwu Group, there is no problem for Kravchuk to preside over the work.
First there were passionate speeches, and finally the official harvest began amid the workers' warm cheers, some of them with tears in their eyes.
Large harvesters roared forward, and tons of wheat were pulled away by trucks. The wheat would be transported to a processing plant built nearby.
The uses of wheat of Nanwu Agricultural Group are simple. Part of it is stored, the remaining 60% is processed into flour, 20% is used as feed, and 20% is used to brew wine.
Feed and alcohol are mainly supplied to the domestic market, a small portion is used for export, and most of the flour is used for trade. The country simply cannot consume so much.
Wheat is grown in other areas and there is simply not enough to eat.
In the five southern states, the large farms and product processing plants under the Nanwu Agricultural Group are operating at high speed as the harvest season approaches. Many small towns are also not idle, and the villagers have also joined the wheat harvesting army.
Regarding agricultural reform, large-scale farms have been integrated, while some smaller or remote farms are encouraged to be contracted out or privately owned.
In addition, the government also encourages farmers to reclaim wasteland, and they can enjoy preferential treatment whether they are contracting or buying and selling.
Many small towns with remote farms will divide the farms into several parts and then contract them out to local farmers, who can even contract first and pay the contracting fee later.
The Nanwu Agricultural Group controls these farmers and land through seeds, fertilizers, pesticides and agricultural loans, forcing them to sell food to them.
The small town of Kabasi is located in the northeast of Zaporizhia. There is a hill in the southwest, which separates it from other areas of Zaporizhia like a screen.
So even though there are tens of thousands of acres of agricultural land here, Nanwu Agricultural Group did not acquire it because it is really difficult to manage.
"Aunt Ivana, Mayor Bartlin asked me to ask you, how many days will it take for your wheat to be harvested?"
On a country road that seemed to have no end, both sides were lined with golden ears of wheat. From their drooping heads and bent backs, it was clear that they were ready to be harvested.
This is Ivana's family's land, a total of 509 acres, which her family contracted last year.
"Should we contact Nanwu Agriculture to come and purchase it? Are the mayor and others in the activity room? I'll go there now."
On the side of the wheat field, an old lady with an oversized swimming ring heard the little boy's question, took another look at her own fertile wheat field, and then rode her bicycle parked on the side of the road.
We walked west along the only asphalt road and after about seven or eight minutes we finally saw the smell of fireworks and a small village appeared.
The small village is not big, with no more than a hundred households at most. More than half of the families, like Ivana's, make a living by contracting and farming.
The rest are engaged in breeding, and some are small business operators such as contract stores and gas stations.
The small town of Kabasi today is no different from those in Western society.
In the middle of the town is a courtyard with a small square, which is a place for people to engage in activities and entertainment.
They came to a room, and when Ivana came in, it was already full of people.
The people inside greeted Ivana when they saw her. Mayor Bartlin motioned for her to sit down and asked, "It's a good thing Ivana is here. When will your family start harvesting wheat? I can call the people at Nanwu Agriculture."
"It can be done tomorrow. The harvesters have already arrived at the Ostrov family's place. Tomorrow and the day after tomorrow will be our last piece of land, so we can call now."
It’s not that there is no harvest, but that there are no tools.
The only harvester in town was the state-owned property of the farm at the time, and although it was small, it was better than nothing.
Due to the agricultural reform, these farm tools were allocated to the town government and anyone could use them but they had to wait in line.
"Okay, in that case I'll make the call later."
Everyone in the room smiled when they heard Bartlin's words, because it meant that they would have their own wealth.
"Everyone, I have inquired about the situation in the small towns outside in recent days. The purchase price of wheat this year is not very high, and is about the same as last year.
My idea is that we need to increase production and use production capacity to increase revenue.
There are a lot of wasteland around us, and the government provides various subsidies for reclaiming wasteland. The contract fee for one acre of land is less than a quarter of what we contract now, and it only costs 8 US dollars per year.
I want to wait until this batch of wheat is sold and each family will share the money to buy two farm machines, and then reclaim the surrounding land on a large scale.
I can’t say how much more, but it should be no problem to reclaim 30,000 to 50,000 acres of arable land.
Another thing is the breeding industry. Now it is developed in a family-based way. Why don’t we build several medium-sized breeding farms in the north and manage them uniformly? This can also reduce costs."
"Bartlin, are you saying we're going back to the state-owned farm system?"
If it were in the past, people here would definitely have no objection, but now seeing that their families can earn more money than before and live a better life, who would be willing to go back to the past?
"Kirilenko, I'm talking about us integrating industries to create greater profits, which is different from before.
You used to work for the country, but now you work for yourself.
Everyone is a shareholder, and the better the performance, the more dividends you will receive each year."
They have always lived in a collective, and many farmers have no idea about the Western shareholding system, so Bartlin had to patiently explain it to them.
"I agree with the mayor." No one expected that the first person to raise her hand in agreement would be Ivana, the only woman in charge of the town.
However, none of the male heads of the household looked down on Ivana, and many of them admired her from the bottom of their hearts.
Her husband died early, and the woman not only took good care of the elderly in the family, but also raised her three sons.
Ivana was the first to respond to the agricultural reform. She took out all her savings to buy seeds, fertilizers, pesticides, etc. She calculated the cost and contracted 509 acres of land on a pay-later basis. She was one of the families with the largest number of contracts in the town and was very courageous.
Looking at it now, her family has managed to survive this year, and life should be much better.
Since a woman has agreed, what else is there to say? Mayor Bartlin is worthy of their trust, so just do it.
The next day, people from Nanwu Agriculture came. Although the purchase price was not high, they brought them good news, that is, the price of seeds, fertilizers and pesticides this year was cheaper than last year.
The reduction in costs has also indirectly increased the purchase price of wheat, and farmers' income has increased anyway.
……
Hong Kong Exchanges and Clearing Limited.
"Profits from grain? Grain traders never rely on grain and oil trade for their livelihood.
In this sector, making money is secondary, controlling the market is the key, and as long as you can control the upstream, losing money doesn’t matter, the financial market is the key to smoothing out the price difference."
This year, both Ermao and Yuandong have had a bumper harvest of wheat. Ermao has seen an increase in production, and Yuandong has also seen a slight increase from nothing, but the amount is very small.
A large amount of land that has only been cultivated for two years has been planted with wheat because it is not suitable for growing soybeans. Once this news gets out, the wheat futures price, which is already in a bear market, will really fall again.
Not only wheat futures, but also stocks of all industries related to wheat, such as global feed, alcohol, etc. will rise, because the raw materials are cheaper, which means greater profits.
So after receiving news from Ermao and Far East, the Far East Finance Department began to lay out its financial market layout.
"It's a pity that Luo Sheng suppressed the news about wheat production in my Far East. If it had been announced, the financial market would have made more profits."
"Boss, people need to be self-sufficient, especially those in our line of work."
Du Huilian chuckled and said, "Yes, I was greedy."
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