Henan is the second largest cotton-growing province in the North China Plain. A recent survey by the local NCCMS office revealed that 2008/09 cotton acreage in the Shangqiu area of the province declined over 30 percent from a year ago. 50 families that grow cotton participated in the study, which showed they reduced 2008/09 cotton acreage by 31.4 percent compared to 2007/08 due to the following reasons:
Sharp increase in fertilizer costs (up to 80 percent over 2007/08).
Insufficient labor force to manage and harvest crop.
Net income higher for corn.
Government incentives to plant grain in order to guarantee grain ration.
Government subsidy for grains in local areas covers 666,667 hectares at 1,050 yuan per hectare, compared to coverage of only 66,000 hectares for the cotton seed subsidy of 225 yuan per hectare.
Sharp increase in fertilizer costs (up to 80 percent over 2007/08).
Insufficient labor force to manage and harvest crop.
Net income higher for corn.
Government incentives to plant grain in order to guarantee grain ration.
Government subsidy for grains in local areas covers 666,667 hectares at 1,050 yuan per hectare, compared to coverage of only 66,000 hectares for the cotton seed subsidy of 225 yuan per hectare.
