* Soy harvest seen down 3 million tonnes due to early frost
* Heilongjiang encouraging soy farmers to switch to corn
* Heilongjiang crushers not operating, awaiting new crop
(Adds, quotes, context, comments on corn)
By Niu Shuping and Tom Miles
HARBIN, China, Sept 18 (Reuters) - Soybean output in Heilongjiang, China's largest soy-growing area, will fall by about 3 million tonnes this year, partly due to an early frost in recent days, the chairman of the area's top soy crusher said.
Tian Renli, chairman and general manager of Jiusan Oils and Grains Industry Group Corp Ltd, said on Friday he expected Heilongjiang's output to fall to about 5 million tonnes, because of the frost in some areas of Heihe and Qiqihar.
"The problem is that the weather in the earlier stages of the year ... delayed the crop. And now there is an early frost, so with a lower acreage, we expect output will fall by three million tonnes," he told Reuters in an interview.
Tian's forecast for Heilongjiang's harvest suggests China's overall soy harvest may be lower than expected. The China National Grains and Oils Center has said it expects a harvest of 14.5 million tonnes, down from 15.5 million tonnes in 2008.
This year China has attracted record imports of soybeans because of a government stockpiling campaign that offered farmers a fixed price for their beans, opening the window to imports when international market prices fell.
The stockpiling campaign, which aimed to help farmers, ended up by drawing criticism for attracting huge imports from the United States and Latin America.
"Stockpiling is not the solution. The government is stockpiling the problem, not resolving the problem," Tian said.
On Thursday a government researcher complained that U.S. farmers were dumping soybeans on the Chinese market, suggesting that China could target soy as a way of hitting back at punitive U.S. tariffs on Chinese tyre imports.
Analysts gave the claim little credence but Tian said it was not fantasy.
"Using soy would be the most effective tool to take revenge on the United States, but the Chinese government will consider its long term interests. Some people think that China relies on imports but actually China right now holds a large amount of soybean stocks."
SUBSIDIES
Tian said Jiusan wanted the government to give crushers incentives to crush Chinese soybeans, which might dissuade them from buying so many imports.
"We have been suggesting subsidies for crushers because this is a good solution," he said.
The government has adopted subsidy programmes to support the local rapeseed and corn crops, and officials have previously told Reuters a similar offer would be extended to some soy crushers in Heilongjiang, with a subsidy of 200 yuan per tonne.
Tian said nothing had been finalised and it was too late.
"Even with a 200 yuan subsidy, they'd still be making 200 yuan in losses, because the soymeal and soyoil prices are all falling."
He also expected planting costs would be higher next year, so the government should offer farmers a higher price for the coming harvest to protect their interests.
Zhang Lichen, Jiusan's assistant general manager, said Heilongjiang's government planned to support farmers by asking them to reduce soy acreage in favour of corn, which yielded better profits last year.
"The provincial government will ask local farmers to grow corn on as many areas as possible. This is part of the local government's masterplan to raise grain production," Zhang said.
Next year's soy acreage will shrink, he said, without giving details.
One state farmer from Beian, a major soy growing county in the west of the province, told Reuters he planned to shift 2 million mu (130,000 hectares) of soy acreage to corn production.
The Jiusan executives said soy crushing in Heilongjiang was shut down as all the crushers were waiting for the new harvest. Shut downs are normal before the new harvest but this year the suspension was longer because the government had bought so much of last year's crop, they said.
Tian said he had another three plants in coastal areas, crushing imported beans, which would help offset the lack of income from the company's two plants in Heilongjiang.