Study On Compensation In Major Grain Producing Areas

There are about 76 percent of grain output from 13 major grain producing areas in China in the year 2014, and the stable increase of the grain production and the food security in major grain producing areas have a great significance for guarantee of the food security in China. Major grain producing areas have a lot of arable land that caused the crowding out effect of the development of secondary and tertiary industries in these regions, and it take a negative impact to economic development in these areas. Current interest compensation policy for major grain producing areas to produce a positive role to the major grain producing areas while it still makes mounts of problems. So it is very necessary to analysis the current status of major grain producing areas, necessity of interest compensation mechanism in major grain producing areas, measure out the amount of compensation for the right of the government and the interests of farmers in major grain producing areas and perfection of interest compensation policy in the major grain producing areas.The first chapter is the introductory part of the article, which discusses the problems generated herein and the writing background, relevant the literature on this issue, the innovations and other issues. The second chapter is the theoretical part which set forth the basic of choosing Henan Province as the case, define some conception involved in this article detailed, put forward the writing ideas and elaborate the theory of knowledge in this paper.Chapter 3 is to sort out food production and economic development in Henan Province and make sure that the status of the large grain production while the shortage of fiscal revenue.Chapter 4 analysis the interest compensation for major grain production areas in the level of province. In this chapter, we take the Henan province as the case, and clear the crowding out effect of the production of the grain to the development of secondary and tertiary industries on the basic of the contradiction on the supply and demand of the land. Then analysis the opportunity cost of the cultivated land in the major grain production area, and make sure that there is loss of interest in these areas which the propose of interest compensation mechanism can based on.In chapter 5 the PSM and DID model are used to do the empirical analysis of the loss amount of Henan province which as the major grain production area. The real GDP are only 78.51% of the deserve of the GDP in Henan province, the loss amount of the GDP in the grain production areas are 964.546 billion Yuan since take the responsibility of the major areas. The loss amounts of the fiscal revenue are 74.945 billion Yuan based on the conversion rate of 7.77%, which are from the GDP to the fiscal revenue in 2014 in Henan province.The foundation of the interest compensation in the level of the individuals is analysis in chapter 6. The result shows the enthusiasm of grain production of the farmers is low which impacted by the income level of them. The multilevel multinomial logit model is used to do the analysis of the impact between Individual demand factors to the enthusiasm of grain production and the result shows that different impact factors lead to the difference of enthusiasm of grain production.The interest compensation for farmers is measured in chapter 7. The measured result is 179.5 Yuan per mu (666.7square meter) for each farmer to guarantee the enthusiasm of grain production. The results consider recovery of the opportunity cost and the improvement of the enthusiasm of grain production.The current interest compensation mechanism for the major grain producing areas are analysis in chapter 8, the result shows that the pressure of the fiscal revenue are remitted in most counties in grain production areas and the enthusiasm of grain production are improved while the lack of the interest compensation mechanism for province, the level of satisfaction degree are low, the minimum purchasing price for the grain is low, the effect of direct grain subsidy is negative and the interests of the compensation are low.Chapter 9 is the perfection of the interest compensation mechanism. The trans-regional indicator for grain trade should be set up and make the main demand region of grain as the fund supplying area. The interests of the compensation for the level of province in the main grain production areas should be added that make sure to recover the loss of the fiscal revenue in these area. Improve the grain subsidy from the aspect of improved varieties subsidy and agricultural materials subsidy. And use the policy assistant to do the interest compensation.Chapter 10 is conclusion and deficiency.