| In recent years, with the development of petroleum agricultural development, agricultural production has brought about a series of issues such as energy depletion and environment pollution, which affect the food safety and sustainable agricultural development seriously in China. Thus protecting ecology environment and promoting sustainable agricultural development become urgent to relief or solve the above problems. This paper analyzed the farmer’s grain producing behavior through eco-friendly agricultural production and agricultural subsidy policies through evaluating macro and micro data applying theories like economics, agroecology, social psychology, agricultural economics, Pareto Optimality and externality. And the agricultural compensation path is build according to the subsidy experiences of developed country.The major writing thought is writing background, theoretical research, empirical analysis, conclusion and suggestions. More specifically, basic theories and relative literature were reviewed and combed as theoretical foundation firstly, and the development of agriculture in the main grain-producing area was analyzed including grain yield, agricultural input consumption and utilization efficiency, farmer income, agricultural production structure and relative factors. And then the connotation and current development of eco-friendly agriculture were put forward, the promotion effects of eco-friendly agriculture production was also analyzed. Whereafter, the crop-planting behavior of farmer through eco-friendly agriculture production and its influence factors were evaluated and the key factors were also detected. According to the above analysis results, the agricultural subsidies and effects were studied, and the subsidy path in our country was build according to the experience in developed countries to promote food security/safety and ecological environment safety. Finally the relative suggestions were put forward.As shown in the results, the grain yield in the main grain-producing area is much higher, whereas the agricultural inputs(fertilizers, pesticides and agricultural films) are overused and the utilization efficiencies are very low. Benefiting-farming policies have been carried out since 2004, the grain yield in the main grain-producing area increase continuously, however the increase of grain output mainly depends on the surplus of agricultural inputs. The agricultural inputs consumption has increased since 1993, and the utilization efficiencies in all provinces in the main grain-producing area are very low, and thus the agricultural non-point source pollution was serious. The farmer’s income is relative low in the main-grain producing area, and the agricultural production structure has changed. The farmer’s income is lower than that of the main demand region of grain, especially income of city residents, and the family business income and wage income are main compositions of farmer income. Economic factors make great contribution to farmer’s income, and the ratio of planting output to farming industry output deceases gradually.The popularization of the eco-friendly agricultural technologies is basic to develop our eco-friendly agriculture. The eco-friendly agriculture is mainly developed through applying eco-friendly agricultural technologies under control and inspiration, which could save agricultural energy and protect environment. The main eco-friendly agricultural technologies in China are conservation tillage, organic fertilizer, cropping rotation, soil testing fertilizer, planting green manure, straw returned, water-saving irrigation and pesticide pollution control technology. The number of farmers applying eco-friendly agricultural technologies is very small, and their perceptions are relative low, and the technology efficiencies of farmers are also not high. Although most farmers want to use the eco-friendly agricultural technologies, very small percentage to put these technologies into practices. Even though farmer thought it is important to apply agricultural inputs properly, they also overuse or misuse inputs according to their own wills. Take the wheat production in Shandong Province, The average technical, pure technical and scale efficiency of farmers were 0.69, 0.769 and 0.884 respectively, and 84.8% of the interviewed farmers were operating at decreasing returns to scale. The total target input costs(407.94CNY/mu) could decrease by 16.6% with respect to the initial input costs.Perception of practices and adoption attitude were the most important ones influencing farmers’ adoption decision to the eco-friendly agricultural technologies. The factors affecting farmers’ decision to grow grain through eco-friendly agricultural production in the main grain-producing area are agricultural subsidy policy and grain revenue forecast. Eco-friendly agricultural production effects farmer’s planting willingness significantly. Farmers easily expanded the scale of planting when they had higher willingness to grow crops. It is generally believed by farmer that grain return was not high, price and subsidy policy were important factors to promote the enthusiasm of farmers to grow grain. According to Logit model statistics, the important factors effecting famer’s willingness include farming years, grain revenue forecast, the ratio of grain revenue accounting for total revenue, the role increasing income of subsidy, the adjustment of crop area as the decreasing price and affection from other farmer production. According to the fuzzy DEMATEL method, age, education level, grain size, national food policy support, food production cooperation organization, grain price, accessing to production information, agriculture technology extension are key factors. Market demand to eco-friendly agricultural products could promote eco-friendly agricultural technologies. Interviewed consumers nearly do not know the eco-friendly agriculture, and they usually do not mistrust safety certified food. However, if have the same price, consumer are much willing to purchase eco-friendly rice. According to Log-logit model analysis, the average paid price is 3.344 CNY/kg(assuming the price of common rice is 3 CNY/kg).The agricultural subsidy is relatively small especially the subsidy about environmental protection, the subsidies do not increase the fertilizer consumption, and the subsidy standard is set out according to Pareto Optimality. The subsidies increase gradually since 2004, whereas the subsidies are very small, and the eco-friendly agricultural subsidy about environmental protection lack seriously. According to grey correlation analysis, grey relational degree between fertilizer consumption and agricultural subsidy is the smallest. According to the panel data analysis, agricultural subsidies do not increase fertilizer consumption per land in wheat production, and the application of agricultural subsidies may not increase the consumption of agricultural inputs, which does not bring out agricultural non-point source pollution. As the profit of positive externality from grain production in the main grain-producing area is obtained by the main demand region of grain, the main demand region of grain should compensate the main grain-producing area on the basis of the Pareto Optimality. When the subsidies in the main grain-producing area achieve 1789 hundred million, the regional utility is the best. According to the subsidy experiences in developed countries, the agricultural compensation policy system promoting grain safety/security and environment safety in our country is built.The relative policy suggestion is put forward according to the above studies:(1) Defining the eco-friendly agriculture, and transforming the mode of agricultural production to promote eco-friendly agricultural development.(2) To strengthen agricultural Science and technology extension services especially the eco-friendly agricultural production technologies, and increasing farmers’ perception of eco-friendly agriculture.(3) To strengthen propaganda and training of environmental protection and food safety to improve farmers’ awareness to agricultural non-point source pollution.(4) Promoting scientific-technical progress, and improving research of agricultural technologies to increase technology efficiency of agricultural production in our country.(5) Improving the minimum purchase price policy of each grain variety, decreasing production cost thus to increase income expection of grain producing.(6) Increasing the agricultural subsidy amounts, and perfecting further agricultural subsidy system in China.(7) Reaching the environmental protection function of agricultural subsidies to promote the eco-friendly agricultural development.(8) Perfecting the market development of the rural land circulation to accelerate the large-scale land operation.(9) Increasing the education level of farmer, and intensifying training of new agricultural technologies to cultivate new farmers with knowledge, technology, and management ability.(10) Readjusting rural production structure rationally to accelerate urban and rural integrations and thus to speed up transformation of agricultural production mode.
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