(Yicai Global) July 25 -- Soybean acreage in Heihe, Heilongjiang province increased sharply to around 12 million mu (one mu equals about 0.067 hectares) this year from 9.4 million mu last year, as government subsidies doubled.
To counter the impact of cheap imported soybeans, soybean subsidies in Heilongjiang province, China's most important soybean-producing region, doubled to CNY130.87 (USD19.59) per mu last year from CNY60.5 per mu in 2014.
"The substantial increase in the soybean subsidy standard suggests that the government is concerned about and supports the soybean industry," Mr. Wang Xiaoyu, the deputy secretary-general of the Heilongjiang Soybean Association said.
The government launched a pilot soybean price reform scheme in the Inner Mongolia Autonomous Region and the three northeastern provinces of Heilongjiang, Jilin and Liaoning in 2014 to let the market determine prices. When the market price is lower than the target price, soybean producers will be subsidized, and when the market price is higher than the target price, no subsidies will be given.