Looking at the Two-Three System from the Points of View of a Survey of Agricultural Production Costs and of the Records of Food Grain Distribution

Yang Ruichun and Zheng Lizhi

Chinese Economy, 1981, vol. 15, issue 2, 107-112

Abstract: Not long ago, when we were collecting and editing the 1978 agricultural commodity production cost surveys, which included 55 counties and 118 sample points, for food grain and oilseeds in Jiangsu, we found that the area planted to hybrid rice had expanded rapidly. In 1978, the area planted to hybrid rice was roughly one fourth of the area planted to >u>xian>/u> [>u>indica>/u>] rice; this year [1979], the area planted to hybrid rice has continued to increase. At the same time, the area planted to early rice in a two rice crop system [and a grain crop in the winter, i.e., the two-three system] is less. This year the area in this two-three system is over one million >u>mu>/u> less than last year. Zhenjiang Prefecture [immediately to the west of Suzhou] adopted the hybrid rice a while ago. According to the gross figures of agricultural costs in Zhenjiang Prefecture, based on 26 production teams in 9 counties, planting hybrid rice is more profitable than double cropping rice. For these 26 production teams, the average yield of the two crops of rice is 1,088.3 >u>jin>/u> [per >u>mu>/u>, 8.16 tons per ha], which surpassed the hybrid rice by 224.4 >u>jin.>/u> However, there a re additional seed requirements of 49.8 >u>jin>/u>, and processing losses are more, so the net increase of processed grain is only 122.2 >u>jin.>/u> Moreover, the cash expenses are Y 25.83 per >u>mu>/u> more, and the labor inputs are 34.2 standard labor days more [per >u>mu>/u>]. Thus the gross costs per >u>mu>/u> reach Y 52.72. [Y 790.8 per ha]. The net return is Y 19.55 less than for hybrid rice. If we include summer grain and count total yearly production, the net difference between three harvests and two harvests is only 4.4 >u>jin>/u> [per >u>mu>/u>] of processed grain, but the net return decreased Y 38.53. In other words, to obtain each additional >u>jin>/u> of processed grain, we pay Y 8.77.

Date: 1981
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