Research On The Improvement Of Grain Direct Subsidies Policy In China

Country considers the people as a fundamental, people regard food as their prime want. Food Security always is a major strategic issue,which concerns national economic development, social stability, national self-reliance. It is important to ensure national food security for realizing the goal of building a well, building a harmonious socialist society, advancing the building of a new socialist countryside. Currently, national food security situation is good, full grain production capacity improved steadily, more abundant food supplied. Especially in recent years, we have good harvests continuously, basic balance between supply and demand of agricultural products is held. Grain output in 2007 reached 500 million tons again. Grain output in 2009 broke through the highest level.However, because of having huge population, grains are in great demand, and the basis for food security is weaker. From the trend of future development, with the development of industrialization and urbanization and the growth of population and the improvement in living standards, consumption demand for grain will increase rigid, constraints of grain production such as farmland shrinking, shortage of water resources, climatic change will become increasingly prominent. Simultaneity, because of the role of market discipline, benefit of farmers planting remains low, which affects peasants' initiative. China's grain supply and demand will long-term keep tight equilibrium, pressure on food supply will increase. To guarantee national grain security and main agricultural products effective supply will be a heavy responsibility and a long way to go.Aiming at benefit of farmers planting remaining low and difficulty in increasing farmer income,2004, the central government issued Document No.1: the views of policies on promoting peasants to increase income, which suggested that we should set up direct subsidies to grain system. So far, direct subsidies to grain policy has been put in practice for 6 years, which motivated peasants to a great extent to plant grain and brought about six harvests in grain production:Food production has been increasing since 2004, it reached again 500 million tons in 2007, then 520 million tons in 2008,531 million tons in 2009. However, there are some issues in practicing direct subsidies to grain policy which affects those measures to play continuously. Therefore, it is necessary to evaluate again the performance of direct subsidies to farmer policy, making further reformation and perfection on direct subsidies to farmer policy, which will provide powerful policy support for forming a new high steady of grain productionFirstly, we expound the significance to improve direct subsidies to grain policy, analysis the theoretical basis of direct subsidies to grain policy. Secondly, we evaluate again the performance of direct subsidies to grain policy, proposing that direct subsidies to grain policy should be perfected constantly. Thirdly, we introduce the food subsidies in advanced countries in order to draw useful experiences. Finally, the target, object, the standard, manner and sources of funds of direct subsidies to grain policy are diagnosed, and the policy recommendations to further reform and improve are put forward. Based on such logic, the dissertation is consists of 8 chapters.Chapter one:Introduction. Firstly, the question is presented, the significance of topics is introduced in the part, and the part systematically cards related documents. Then, it draws up the research ideas, sketches up research methods, technological road and main content. Finally, it concludes the innovations in this paper.Chapter two:Basic theory of direct subsidies to grain policy. In this part, basic concept, research areas, hypotheses, food security theory, theory of comparative efficiency of food production and theory of agricultural subsidies are expounded.Chapter three:the present direct subsidies to grain policy need to be perfected. In this part, we first review the food subsidies in China. Then, analyze the historical role of direct subsidies to grain policy. Finally, the system defect and some issues in practicing direct subsidies to grain policy are put forward.Chapter four:the food subsidies in advanced countries and its enlightenment. In this part, the food subsidies in America, European Union, Australia, Canada are introduced, and the enlightenment is concluded, which provide useful experience for improving the direct subsidies to grain policy in China.Chapter five:the rectification of the target of present direct subsidies to grain policy in China. In this part, we first diagnose the target of present direct subsidies to grain policy, then, rectify the target of present direct subsidies to grain policy.Chapter six:the rectification and perfection of the object and basis of present direct subsidies to grain policy in China. In this part, the content includes the object and basis of present direct subsidies to farmer policy and the policy recommendations.Chapter seven:the standard direct subsidies to grain should be determined and the sources of fund of direct subsidies to grain should be improved.In this part, the content includes the basis of the standard direct subsidies to grain to be determined, the method to determine the standard, the reasonable standards of each province and the improvement of the sources of the fund of direct subsidies to grain in grain-producing counties.Chapter eight:conclusions and policy recommendations of the full text.The research shows that there are following issues in practicing present direct subsidies to grain policy:the target of direct subsidies to grain is uncertainty; the object of direct subsidies to grain is not clear; the basic of direct subsidies to grain is unscientific; the standards of direct subsidies to grain are significantly lower in most provinces; the sources of the fund of direct subsidies to grain are single. According to China's national and grain conditions, concerning WTO rules, the paper puts forward following recommendations:(1) The target of direct subsidies to grain should be special food Security rather than increasing farms'income and others. (2) The object of direct subsidies to grain should be peasants who plant grains. (3) The basic of direct subsidies to grain should be the area peasant planting, concerning the sale of grain number. (4) The manner of direct subsidies to grain should be progressive subsidies policy. (5) Factors of production subsidies. We should increase the factors of production subsidies which are important to increase grain yield and quality. (6) We should construct the "safety net" to ensure farmer income. Based on the farmer income, concerning changes in the price for agricultural supplies, the market price of grains and the yield, we should set up the dynamic adjustment mechanism of direct subsidies to grain to ensure farmer income. (7) We should determine the standard of direct subsidies to grain concerning the average profit of agriculture. (8) Based on grain risk fund, we should broaden sources of funding direct subsidies to grain. (9) We shuold special pay attention to increasing the standard of direct subsidies to grain and broading sources of funding direct subsidies to grain in grain-producing counties, establishing the system of transfer payments between grain-producing counties and sales areas.