A Research On The Production Costs And Profits Of The Principal Grain Crops In Bayannur

Since ancient times food has been not only a necessity for human beings, but the important guarantee to ensure the security of the state. As the old saying goes,"Food and fodder should go ahead of troops and horses." Which clearly states the importance of food. With the change of food policy in China, grain price is increasingly determined by the market and it is closely related to the costs and profits of food. At present, the prices of domestic principal agricultural products drop away from the import prices, food costs rising steadily and food fro fits being squeezed by both price(so-called ceiling) and cost(so-called floor). And meanwhile the increasingly scarce resources and the fragile ecological environment are raising alarm to the agricultural development mode of high investment and high productivity. The changes in food production costs and profits are a major factor reflecting the supply-demand relation as well as a key determiner of farmers’ income. The price rise in the means of agricultural production such as material costs, labour costs compresses farmer’s income and dampens their enthusiasm thus affecting grain yield and the fluctuation of grain prices.Based on the above problems, this paper makes an in-depth research on the grain production costs and profits expounding the rise of the costs is the major driver causing the fluctuation of the grain prices, on the basis of which puts forward some countermeasures and proposals concerning how to stablize and lower the grain costs to improve the profits.By employing comparative analysis, gathering, organizing and calculating the relevant data,this paper makes an analysis on the changes of the grain costs and profits in Bayannur as well as the factors and indicators affecting these changes and shows the problems in food production thus putting forward the countermeasures to reduce the costs of production for better profits of farmers.