The Impacts And Optimization Research On Agricultural Technology Subsidies In China

Householders make new changes of factors inputs during the process of the rapid development of industrialization and urbanization. At the same time, China starts to implement the policy of agricultural technology subsidies with the advance of "industry nurturing agriculture" and agricultural technology promotion. Under the background, the impact of subsidies on agricultural production elements inputs and outputs and so on, will be related to agriculture, rural development and householders’income. Therefore, the agricultural technology subsidies have become a hot issue of the public concern.Based on the concept, necessity and economic effect of the agricultural technology subsidies policy along with status quo of the implementation of the subsidies policy, the paper analyzes the impact mechanism of the subsidies policy on the factors inputs, builds the models about labor input, demand of the agricultural machinery service and land rent on basis of Turbin Q investment theory, and integrates CF-Double hurdle, CF-Probit models. The impacts of the subsidies policy on the factors inputs are analyzed theoretically and empirically by using the survey and statistical data. And from the perspectives of province and county levels, the paper estimates the technical efficiency and target subsidy using four-stage DEA-Tobit method and multi-objective programming method, considering the environmental variables and simultaneously considering the objectives of fairness and efficiency. Then the paper forms the research framework of the relationship between subsidies policy and technical efficiency by embedded soil fertility model through subsidies. Finally, the recommendations are proposed to improve the subsidies policy. The main conclusions are summarized as follows.(1) The empirical analysis of the impact of the subsidies policy on the labor input shows that the subsidies policy has significant negative impact on the supply of off-farm labor, and the subsidy to the off-farm labor supply is inelastic,-0.88. And the effect appears cosine-type or inverted U-type change trends as income, land size, economic rent and age increase. Then the distortion effect of the subsidy on the labor market is smaller under the condition of the25percent and90percent of land size and income level. Besides, the land size has significant negative impact, but economic rent, age, population, labor and income have significant positive impact.(2) The empirical analysis of the impact of the subsidies policy on the capital input finds the subsidies policy has significant positive impact on demand of private agricultural machinery services, which is not crowding-out effect but crowding-in effect. The subsidy to demand of private agricultural machinery services is inelastic,0.3275. And the crowding-in effect appears increasing or decreasing trend as land, income and age increases. Additionally, technology cognition has positive influence, but technology risk has negative influence.(3) The results about the impact of the subsidies policy on the land input find that the impact of the subsidies policy on land rent-in is related with rent, technology, subsidies rate. The empirical research results show that the subsidies policy has significant negative impact on land rent-in. And technology adoption, off-farm labor size, education and land size have significant positive influence, but economic rent, age, sex and family income have significant negative influence.(4) The results about optimization of the provincial subsidy size show that the whole technical efficiency is low in China, and farmers’average income per householder is environment variable. And the subsidy has a positive impact on improving the technical efficiency in the first and second areas, but it has little impact in the third and fourth areas. Also the result is found that the sequence of the technical efficiency in "eight-type" region is northeast region, middle Yellow River region, middle Yangtze River Region, northern coast region, northwest region, southwest region, southern coast region and east coast region.(5) The results about optimization of the county subsidy size find that the whole technical efficiency isn’t high in14counties of Shandong province. The estimated county target subsidy by multi-objective programming method is a deviation from the actual subsidy, which indicates the actual distribution of subsidies pay more attention to fairness.