Chapter 352 - 171: Another Visit

Chapter 352: Chapter 171: Another Visit

"What about the contracting fees?"

"The contracted area for the Hunshandake Desert is 15 million mu, at a rate of 50 yuan per mu annually. We don’t have to pay the fee before development begins. However, the local authorities have given us a three-year deadline. If we haven’t started development within that time, they will cancel the agreement. The contract term is 30 years."

"The Wulanbuhe Desert is 12 million mu and the Tengger Desert is 45 million mu, both at a rate of 30 yuan per mu annually. The grace period for fee exemption before development is five years, and the contract term is 45 years."

"The Badan Jiling Desert is 45 million mu, at 20 yuan per mu annually. The grace period for fee exemption before development is six years, and the contract term is 50 years."

Hearing such low prices and the fee exemption period, Jiang Miao knew the Monan State-owned Assets Operation Company must have pulled some strings.

This was perfectly normal. After all, the Monan State-owned Assets Operation Company held a 65% stake in United Mining Company.

And in each contracted area, United Mining Company had partnered with the local state-owned asset management companies, giving them a 49% stake.

That’s why the contracting process had moved so quickly.

Even so, United Mining Company stood to gain tremendously.

Zhao Shuisheng, responsible for liaising with and supervising United Mining Company, was all smiles. If he’d had any worries before June, they were all gone now.

A large portion of the soybeans planted by the Monan Branch in the Tamin Chagan Desert were already growing lush and green. For the past few days, he had been keeping a close eye on their progress at the Tamin Chagan Farm.

Because he was paying such close attention, Zhao Shuisheng knew the condition of the soybean fields like the back of his hand. Considering they were almost entirely dependent on the weather, their growth was excellent.

This was partially thanks to the summer downpours in Zhelimu City this year, but the Hunshandake Desert area also had several heavy rains. The combined rainfall for May and June was about 150 millimeters.

In the southeastern parts of the Wulanbuhe and Tengger Deserts, the rainfall in May and June also reached about 80 millimeters, which was much more than in previous years.

As for the northwestern part of the Tengger Desert and the southeastern part of the Badan Jiling Desert, the rainfall in May and June was only 40 to 50 millimeters.

From what Zhao Shuisheng had gleaned from United Mining Company’s internal documents, Immortal Soybeans could be planted on a large scale in the Tengger Desert and the southeastern Badan Jiling Desert, but the yields would be relatively low. The contracted area in the Badan Jiling Desert, in particular, would most likely only be suitable for use as pastureland.

Even if it was just pastureland, that was still 45 million mu.

This was clearly a monumental achievement. Although General Manager Gao Meng had been the one to push the partnership through against all objections, Zhao Shuisheng’s own role in liaising with United Mining Company was a major contribution as well.

As a result, his gaze toward Jiang Miao had become exceptionally warm.

Jiang Miao paid no mind to Zhao Shuisheng’s inner calculations. He gave his instructions, "The transformation of the Tamin Chagan Desert is complete, and the engineering team has had more than ten days of rest. You can hire the Monan Branch’s engineering crew. First, focus all efforts on transforming the Hunshandake Desert. Simultaneously, establish small-scale experimental plots in the Wulanbuhe, Tengger, and Badan Jiling Deserts."

"Understood, Boss." Lin Yonghua noted this down.

"We have enough soybean seeds for one million mu now. You can plant as you transform the land. But even between brothers, accounts must be settled. The bookkeeping must be crystal clear. These seeds are to be purchased by United Mining Company from Hailufeng Company."

Hearing this, Zhao Shuisheng quickly chimed in, "I agree. Even though United Mining Company and Hailufeng Company have equity ties, everything must be conducted according to standard business practices."

Jiang Miao quoted a reasonable price. "Alright, for the 4,900 tons of soybean seeds, let’s make it 20,000 yuan per ton. That’s the market price for high-yield soybeans anyway."

"That’s acceptable." Zhao Shuisheng also felt the Immortal Soybean seeds were worth that price.

Jiang Miao continued, "In addition, after planting the Immortal Soybeans, the annual patent fee is 10 yuan per mu. General Manager Zhao, you have no objections, right?"

"None, none at all." Of course Zhao Shuisheng had no objections.

Using the planted area as the standard for collecting patent fees was a relatively reasonable plan.

After all, with Immortal Soybeans bursting onto the scene, the domestic acreage dedicated to them was bound to increase. This was especially true given that farmers could save their own seeds and that the Immortal Bean line was perennial.

Relying on seed sales alone would clearly not be profitable in the long run.

Collecting a patent fee based on acreage was the only way to maximize profits. Thus, a fee of 10 yuan per mu was a relatively reasonable standard—not too high, but enough to guarantee a profit for Hailufeng Company.

Jiang Miao had no intention of sub-contracting the desert land back from United Mining Company. The profit margins were too low. He would rather focus his energy on the Kerchin Desert, with Zhelimu City as its core. Among all the country’s major deserts and sandy lands, its water and heat conditions were the best.

By concentrating their efforts on Zhelimu City, he could build it into a core hub for Hailufeng Company in the Northeast.

He could leave the other deserts to other companies and farmers. After all, Hailufeng Company held shares in United Mining Company. The annual income from sub-leasing fees and patent royalties would amount to several billion yuan. That was pure profit. Why go through all the trouble of farming it himself?

Of course, Hailufeng Company’s development plan for Zhelimu City had to involve the parallel development of agriculture, animal husbandry, and subsidiary industries. This was the cornerstone of the company’s growth and a necessary step to expand its influence.

Jiang Miao was already thinking about how to expand the Monan Branch’s industries.

After all, he felt that simply planting soybeans and fodder, raising cattle, sheep, and bees wasn’t enough. Even adding a dairy industry wouldn’t make the business model comprehensive enough.

He had been thinking about this matter constantly.

The brief meeting continued. As Jiang Miao chatted with Lü Weibin, Wu Song, and the others, Wu Song suddenly mentioned something that sparked an idea in Jiang Miao’s mind.

However, considering that Zhao Shuisheng was an outsider, he didn’t say anything, and continued to chat with them about the two companies’ affairs.

As evening approached, they drove to downtown Zhelimu City for dinner.