The Analysis On Costs And Benefits Of Cotton Planting In Shandong Province

Cotton is one of the most important economic crops in China and the development of cotton industry has important strategic significance to the national economy of our country. China is the largest cotton producer and consumer country whose cotton production has been ranked first all over the world since 1983, so our cotton has play a decisive role position not only at home but also in the world.Shandong is a leading province of China in cotton production. The average acreage and yield of cotton in Shandong province has been accounted for 15.8% and 14.02% of our country since the turn of the century. Therefor, promoting the development of the cotton production plays a very important role to increase the income of farmers and push the development of rural economy as well as the overall economy of Shandong province.However, In recent years, cotton production in Shandong province observed a downward trend and the acreage and yield of cotton appeared significant reduction. In addition, the risk of planting cotton increased due to the cotton price fluctuations obviously, which greatly undermined the farmers’ enthusiasm of planting cotton and severely restricted the stability and sustainable development of cotton production in Shandong province.Based on the current situation of cotton planting in Shandong province, this paper analysis the costs and the benefits of cotton production in detail with the combination of empirical analysis and normative analysis method,which perhaps help for supplying guidance to improve the production efficiency and increase the farmers benefits. Firstly, this paper reviews the evolution of cotton planting history and introduces the status of Shandong cotton production in China.Secondly, On the basis of introductions of some theories about China’s agricultural products cost-benefit calculation, this thesis analysis the composition and change of cotton planting costs and returns. Thirdly, by comparative study on costs and benefits of Shandong and other major cotton producing area in China as well as other three kinds of crops(wheat, corn, peanuts), this paper finds out the advantages and disadvantages of cotton production in Shandong. Finally, according to the above research conclusion, the author put forwards the relevant policies and suggestions to promote the development of Shandong cotton production.The research results show that: In recent years, the total cost of cotton production in Shandong showed a rapid upward trend and the speed of the labor cost growth was fastest. But the overall level of cotton planting benefit is low, which is affected by the cotton price volatility, showing obvious fluctuation. Compared with other major cotton producing area,Shandong cotton cultivation had comparative disadvantage in the aspect of benefit, while the disadvantage mainly derived from the lower level of per unit area yield. In contrast with the other three kinds of crops in Shandong province, the comparative disadvantage in the total cost of cotton planting was outstanding and its income is not dominant. Therefore, in order to recover and develop Shandong cotton production, the government should encourage the peasant to adjust the input structure, to implement the mechanization production, to increase investment in science and technology, to improve per unit area yield level and to stabilize cotton prices gradually so as to protect the cotton farmers planting income.