The policy must be grounded in reality.

April 10, 2014 20:53

(Baonghean) - In the Mekong Delta during the last harvest season, the price of IR50404 rice was approximately 4,000 to 4,100 VND/kg. Due to the increase in prices of agricultural supplies (fertilizers, pesticides, herbicides, fuel, seeds, etc.), the average production cost was 3,709 VND/kg. Rice farmers did not make a profit. Careful calculations in other localities yielded similar results.

This is an issue that many people are interested in.

Most opinions suggest that, in order to increase farmers' incomes, we need to convert a certain amount (estimated at 2 million hectares) of rice-growing land to other crops. The question is, can we guarantee that growing other crops will definitely yield higher incomes than growing rice?

For a long time, newspapers, television, and films have been discussing this issue quite enthusiastically and passionately. Some argue that using rice paddy land to grow vegetables would yield at least five times the income from rice cultivation. Others claim that using rice paddy land to grow flowers would increase farmers' income twenty times compared to rice farming!

Indeed, in reality, there have been times when farmers switched from rice cultivation to growing flowers or other crops and achieved high results. But is it true that switching from rice cultivation to other crops always yields high results everywhere and at all times?

Over the past few days, hundreds of trucks loaded with watermelons have been lined up for over thirty kilometers, waiting day and night, hoping to get through the Tan Thanh border gate to sell their produce to Chinese traders. With each passing day, the fresh, delicious watermelons gradually turn into rotten, spoiled fruit that must be thrown away. The parking area is cramped, customs clearance is not simple or easy, and traders are extorting and forcing down prices. Our traders are worried and suffering heavy losses. Dozens of tons of rotten watermelons have been discarded, piling up on both sides of the border gate. Meanwhile, tens of thousands of watermelon farmers in Quang Ngai, Binh Dinh, and other provinces are facing an extremely difficult and harsh reality. Currently, in these areas, the price of 1kg of watermelon in the fields is 1,000 dong, or even 500 dong/kg, and they still can't sell it! Let's do the math: If you use 1,000 square meters of land to grow watermelons, the total cost (plowing, seeds, fertilizer, etc.) is 8 million VND, and the maximum yield is 3 tons of watermelons. If you sell them at 1,000 VND/kg, each ton of watermelons brings in 1 million VND, so 3 tons would bring in 3 million VND, meaning the farmer would still lose 5 million VND.

If farmers sell watermelons at 500 VND/kg, they will incur a loss of 6.5 million VND.

During these days, tomatoes, lettuce, and other vegetables in Da Lat are only selling for 500 VND/kg, forcing producers to accept losses. Hundreds of hectares of vegetables remain unharvested, left for cattle to eat! These harsh realities force us to think more carefully and realistically about the process of producing agricultural commodities in a market economy. Moreover, there was a time when we thought we had calculated very carefully and accurately, ensuring success for both the production and distribution of goods. For example, many localities meticulously planned how much land needed to be allocated for planting sugarcane and pineapples, and then built sugar factories and pineapple juice factories, subsequently organizing production contracts between farmers and factories in a very serious and scientific manner. One might assume that this approach creates a closed loop, guaranteeing profits for both sides, and that such a method of production and distribution can operate smoothly. However, reality shows that in some localities, both farmers and agricultural processing plants are facing numerous difficulties, including the risk of losses and bankruptcy. Indeed, achieving efficient production and business in agriculture is a very challenging problem!

The policy of converting rice-growing land to cultivate other crops with higher economic value is correct. However, in reality, making this conversion highly effective is not easy.

Is growing rice unprofitable, but growing other crops is profitable? The correct answer is: Yes, it is profitable, but that depends on the customers and the consumer market.

The constant questions facing farmers today are: what crops to grow, what livestock to raise, what products to produce, where to sell them, what prices to set, and is this production and business process sustainable?

Until these questions are answered, crop conversion on agricultural land remains a matter of chance, and its outcome cannot be confirmed with certainty.

Perhaps policymakers and farmers alike should opt for a "steady approach" rather than a "quick move" in converting 2 million hectares of rice land to other crops...

Thach Quy