Peasants' Role Differentiation And The Income Distribution Effect Of Agricultural Policy

Along with the increase of agricultural productivity and supply of agricultural products, the price decline end to end,the income of farmer is under other resident in long term, thus it's a globality problem. Although China agricultural create a globality miracle in the past 30 years, the income per farmer is still so lower, and the inequality is increase. For this problem, the aim of agricultural subsidy policy is support the income of farmer (OECD, 2005).In this period China come on a series of subsidy policy such as phase out agricultural tax and direct subsidies policy to resolve the problem. But the experience of developed country show, any policy and subsidy in reference to production, will turn to be the land rents and increase the cost of invest and management, and have nothing to do with the income of farmer as labor (B.Gardner,2000). Other study show, besides to increase the land rents,don't increase the income of farmer, the subsidies of developed countries probably enlarge the inequality of farmer (OECD, 1999). According to estimate, the Gini index of E.U and U.S.A is 0.74 and 0.98, even if the Gini index of direct payment is 0.56 and 0.61 (J. von Braun,2005). And the question is whether the subsidy policy of China can resolve such problem?Any income will decompose and belong to proprietor of resources for production. The income source of farmer is the resource of them, along with labor resource. According to theory of economics,Output from the contribution of investment, thus corresponding income attributed to the owner of resources, that is generally divided into profits and wages in the agricultural sector is usually divided into rent, profit (operating income) and wages (labour income). Agricultural income deducted from the total agricultural production material costs after a net income of the land can be divided into operating (investment) and the three elements into the labor remuneration. After the decomposition of agricultural income attributed to the owner of agricultural resources, the provision of public support for agricultural production, the proceeds will be divided into different resources accordingly owner of income. In the mid to late 1990s, as migrant workers to leave their homes, out of his home in urban and rural areas, inter-regional flow of rural residents in China's income distribution from a single form of diversification of its revenue in the new situation. And, as the market process forward, farmers gradually operating division, farmers no longer a high degree of homogeneity of the group, but a divided with different interests and living standards of people. Between farmers in resource endowment (including human resources) there is a huge gap, more importantly, the farmers in production has begun to divide the roles of different sources of income farmers already are different. Some farmers have been basically completed labor movement, its income from agriculture land is basically the rental income, depending on the level of rent; Some farmers rely mainly on agricultural workers to obtain income, their income from agriculture is basically labor income, thus Depends on the labor market prices; some farmers the role of differentiation was not obvious, but their income can still theoretically divided into rent, labor income and capital income of three parts, and the first two parts of the income from land and labor market prices Reference. As the role of farmers differentiation, the same agricultural policies in some farmers to increase income of farmers may be the income of some farmers have no role in the current circumstances, farmers in low-income people (including the main providers of labor income and access to farming Simple farmers or small farmers mainly in agriculture) is the domestic agricultural policy should be the main target groups. So in order to improve policy and the efficiency of public expenditure, it is necessary a comprehensive review of existing and near term options for agriculture and related policies of the income distribution effect, in accordance with the goal of building a harmonious society determine the development and implementation of the policy priority order.Therefore, the overall objective of this study is in China basic balance of supply and demand of agricultural products, farmers role in the context of differentiation, through theoretical and empirical analysis of the current visit of China policy of agricultural subsidies to farmers income and its distribution role in trying to verify: the existing agricultural Subsidies to farmers to increase the role of labor income do not even have a negative effect, subsidized by the proceeds will pay land rents or capital increase, respectively, were the owners or land owner access to capital, and then the internal distribution of income of rural residents have The impact of the new. The full text is divided into 10 parts, the main contents and conclusions stated the following:Research 1: Farmers role differentiation and sources of income differentiation status.The income of peasants is the source of its possession or control of the resource endowment. In the course of economic development with land sublease, wage labour and employment in the large number of machinery, farmers gradually division as the main income on rent of the land owners, mainly depend on wage income of agricultural workers and rely mainly on capital income of agricultural capital holders; Farmers use the land than working capital while similar, but its possession of the land than the capital labor has had differences. The ratio of employment of means of agricultural production is, farmers have the resources and use resources more inconsistency between the resource endowment of farmers (land capital labour ratio) of the difference is, the higher the degree of differentiation farmers. By measuring the two methods of the peasants differentiation: First, will the owners of agricultural land resources, labor and capital under conditions of use for self-use and rental and leasing terms of the proportion of the other farmers use the land, labor And capital sources based on the respective divided into its own and employment, and calculate the proportion of their employment. Survey after that: (1) from the agricultural resources of the owner of rental resources, capital, labor, land rentals have accounted for the proportion of 68.14%, 9.41%, 4.55%, and that farmers in the internal differentiation of the most Is the capital, followed by labor, and finally the land, (2) from the farmers to use the capital, land, labor, employment in the proportion of the respective 77.10%, 38.09% and 28.76% of the capital, land, labor from the agricultural machinery Services market, land market and the labour market, (3) farmers to use the capital, land, labor, employment in the proportion is far more than the owner of agricultural resources in the rural areas the proportion of rental resources that farmers use the resources of a large part of the source To farmers outside the group, (4) in the sample areas, respectively 35.14%, 21.37% and 28.12% of the land, labor and capital from outside the samples County farmers groups, which mainly come from the village collective land, the main source of labor In the provinces of Anhui and other farmers, capital comes mainly from urban residents or institutions. In addition, the allocation of resources to describe the situation after the discovery: sample areas of land and more uniform distribution of agricultural labor, capital of the average, the richest 10% of households have nearly half of the agricultural capital. From low-income people have the resources, the lowest-income families have more 20% of the agricultural labor force (16.79%), but with fewer of the land (12.83%) and less capital (8.98%).Research two: The price effect of agricultural subsidies policy on agricultural production elements.Agricultural subsidies of agricultural production by changing the policy elements of supply and demand changes in the prices of agricultural production factors, then the farmers have an impact on the farming income. This study investigated the two in recent years implemented various policies typical of agricultural subsidies on agricultural markets for factors of impact: 1, the agricultural tax relief and food policy for land Zhibu the impact on demand 2, discussion is not linked to the subsidy policy (such as tax relief) Budget constraints and farmers to change the total wealth as well as on the impact of demand factors.Research 3: The income distribution of tax relief and direct payment policy.Role of farmers in this part of the background division inspected the above two policy of income distribution. Zhibu tax and fee reduction and food policy will not increase agricultural production in the prices of capital and labor, agricultural capital and labor owner will not benefit from the two policies, the policy proceeds through the land the role of the market and into land rent, The land owner was Construction of income through the Lorenz curve and expenditure policies inspected the attribution of these two subsidy policies of the income distribution effect, the results showed that: these two policy expenditure in the distribution of farmers income distribution more than the current average, farmers can reduce inter - The relative income gap. However, the benefits of low-income populations less: the lowest-income farmers received only 10% of the expenditures attributable to the policies of these two parts of the peasants 4.27%, the lowest income only 20% of rural households was attributed to the 11.36% of the farmers. Therefore, these two policies can narrow the income of the farmers despite the relative gap, but will continue to expand the absolute gap between the income of the farmers.