Research On Agricultural Intermediate Inputs Issues Of China

With the reform and opening up in the past three decades, the economic development of rural areas has made considerable progress, and not only the agriculture production has been made records for many years, but also other industries have gotten rapid growth, which has made an important contribution to the rural economic development and farmers'income growth. According to the theories of economic growth, the main promotion factors of economic includes labor, capital, technology, land, and human capital. However, in addition to the labor, other factors are in relatively poor condition in our most rural areas. For example, a large number of capital and high quality labor have been out of the rural areas; farmers are difficult to get the full benefits of the land capitalization; the reform of agriculture management organization progresses slowly.Under the influence of dispersed small-scale agricultural organization model and low income level, agriculture intermediate inputs occupies a very large proportion of agricultural investment, by our estimates, its share in total income per capital of farmer is as high as 50%. Therefore, it is the most active factor in rural economy, it is not only as general material to increase agriculture production, but also provides strong support for the accumulation of other economic development factors. However, current scholars just look at agriculture intemediate inputs as general production input, or they only study one element of agriculture intemediate inputs. At present, we have not comprehensively invstigated on agriculture intemediate inputs, including: status; impact mechanism on rural economic development; factors affecting their investment and their own problems. In this context, it is very necessary to study those issues.We first stduy its development status, which is from two perspectives: the overall level of contry and time/panel data of provinces. since the founding of the People's republic of China, our government has always attached attention to the agriculture intermediate inputs as the important agricultural production input, and with the advance of market-oriented reform, the way of its circulation system marketization reform have realized from mandatory change to included change. It has the following characteristics: the actual amount shows an increasing trend year by year, but in the impact of price soaring, it increased in 2008; in agriculture, forestry, animal husbandry, fishery sectors, the share of agriculture and forestry is the largest, and forestry's share has exceeded agriculture's in the past two years; material inputs account about 85%, but the share of production services inrease rapidly in recent years, faster than all other factors; regional differences and regional economic development level have a significant correlation, but government also plays a very importtant role in increasing inputs.It has no doubt about the positive effect of agriculture intermediate inputs to agriculture production, does it have the effect to the rural economy? In this paper, we analyze the status of rural economy growth factors, and find that main factors are in relatively poor condition in our most rural areas, but intermediate inputs is the most active factor, which share in total income per capital of farmer is as high as 50%. Therefore, we study the mechanism of intermediate inputs to promote rural economic development. The conclusion shows: by increasing inputs and improving technological level, it improves the land and labor productivity, which can realse more land and labor to support economic growth; through effectively ensuring grain supply, it provides the possibility of pushing farmer to adjust planting and cultivating structure, which promotes the adjustment of agriculutre structure and agriculture industrialization; its circulation system marketization reform provides non-agricultural employment opportunities. In this part, we also use neoclassical economic growth model and panel data model to test our theory hypothesis, and the conclusion is positive.Agriculture intermediate inputs plays important role in rural economic growth, to make better use of it, we should analyse the factors which affect its application. We examine the effct of farmer income, agriculture inputs price, agricultural intensification and agricultural production structure to intermediate inputs use. It shows that inputs also has increasing room under the influence of these four factors development status. It should be noted that rural economic growth is the basis of farmer income increasing, but in our country, they are not synchronized, so it is not contradictory to study the income effect to inputs.We also analyse the problems,challenges and opportunities of agriculture intermediate inputs in China. Firstly, we apply Data Envelopment Analysis model estimulate the efficiecy of 31 provinces, it shows that the most provinces are inefficiency, and are in returns to scale decreasing condition ueder present production status. We analyse the circulation market of inputs, and identify the problems and areas needed to improve. Finally, we study the impacet of low-carbon economy on agriculture and agriculture intermediate inputs. We consider that if we resovle properly, it also can be transformed into a great opportunity.Finally, according to the previous conclusion, we put forward the corresponding suggestions: effectively increasing the income of farmers by improving their ability to participate in the distribution of income indepently; by establishing agricultre inputs price stabilization mechanism etc. to further improve agriculture inputs market; improving usage efficiency by promoting high technology inputs, stimulating major technological breakthroughs and exploring precision agriculture model etc.; actively facing the low-carbon economy, trying to transform the challenge to opportunity.Fertilizer is one of the most important elements of agriculture intermediate inputs, and our governmet is very concerned about it. By way of case study, we analysize the world and our country fertilizer production and consumption status. By this way, we can better understader our country's agriculture intermediate inputs status, fuction and so on, and promte it better development.