Of Maize and Markets: China’s New Corn Policy
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In early 2013, farmers in Iowa and across the Midwest braced for a difficult corn market, with prices declining from $7/bushel in late 2012 to $4/bushel in early 2015, and finally settling at $3/bushel. Shielded from the world market, corn producers in China enjoyed a steady elevated corn price of almost $10/bushel from 2011 until 2015—largely a result of China’s obscure price floor corn policy. While China’s corn production is mainly used for domestic consumption, policy changes in China’s corn markets have trade implications for the global corn, beef, and pork sectors.