Study On The Subsidy Policy Performance For Grain Planting In China

China’s population accounts for one out of fifth of the whole globe. To feed such a large population, China has always looked grain problem as core issue in agriculture. Grain production has characteristics of long period, conditioned by natural climate and low added value. Combined with the mode of family management in our country, grain output is low, the cost of grain production is so high that makes it’s productivity is low and grain fanners income is low too. In order to deal with these problems, our government has implemented a series of food subsidies policies, exempted from all agricultural taxes, and adjusted indirect subsidies on food enterprise and consumer to direct subsidies mainly on farmers and established the food subsidies policies system, which is supplemented by grain purchase. This paper analyzed the history and current situation of China’s grain subsidy policy and evaluated its performance. It analyzed the economical effects of grain subsidy policy, found out the main problems of grain subsidy policy in practice and researched for its cases. On the basis of this, the paper put forward suggestions for the improvement and innovation of the grain subsidy policy. This paper analyzed the necessity of the grain subsidy policy, by analyzing the process of development of China’s grain subsidies policy, this paper analyzed the achievement, characteristics and the gap of grain subsidy policy in China and analyzed the economical effects that grain subsidy policies has brought about to producers, consumers, and grain trader. Using AHP model and grey relational model (Grey Relational Analysis model), this paper has also evaluated the performance of direct financial subside policies of China in last10years, evaluated the performance of direct subside policies in every provinces in2013.The results of this paper have showed that all types of the grain subsidy policies had promoted grain production for many years, but they have less effect on improving grain peasant’s income. Before and after2004, China’s grain subsidy policy shifted, this mobilized the enthusiasm of grain fanners greatly to produce food, and the policy performance is good.By using the vector autoregressive (VAR) model, this paper found out the factors that influence the performance of grain direct subsidy policy. The results show there are many factors such economical environments as agricultural factors prices, international trade condition and the influence of the economic cycle, besides subsidies scale, subsidies structure and the ways of subsidies that affect the performance of grain subsidies policy. At the same time, the performance of grain subsidy policy is also affected by the natural resource endowments of each region, such as climate conditions, irrigation and water conservancy facilities condition, farmland fertility, producers of the comprehensive quality and the way to produce grain, etc. Therefore, the implementation of grain subsidy policy needs to be combined with other policies, and to innovated, improved and perfected constantly.China’s grain subsidy policy has made great achievements. But there are also many shortcomings such as insufficient total amount of subsidies, which could not improve grain farmer’s income quickly, and the protection of cultivated land fertility and agricultural ecological environment is not taken good care of. The mechanism of the implementation of the food subsidy policy is not perfect, and without the coordination and operation of other policies,so its efficiency is low.Suggestion in this paper to solve these problems, is to clear the overall goal of China’s grain subsidy policy, to establish and improve the food subsidies policy system of our country, to strengthen the information construction on the implementation of grain subsidy policy, innovative mechanisms for the implementation of China’s grain subsidy policy, build the the base of legal and institutional for the grain subsidy policy,and form social support system for grain subsidy policy in China. In order to ensure the food safety of our country, sustainable development of food production and growing the grain farmer’s income, grain subsidy policy need to be adjusted, better and innovated.