Research On Agricultural Direct Subsidy Policy Of China

To address the issue of national food security and peasant incomes increasing slow, China introduced food direct subsidy policy, seed subsidy policy and farm machinery purchase subsidy policy in 2004, introduced agricultural production means comprehensive direct subsidy policy in 2006, which made an important contribution in ensuring national food security and increasing peasant income. However, agricultural direct subsidy policy could not continue to mobilize the enthusiasm of peasants to grow grain and the role of promoting peasant income was limited, and there are many problems in policy design aspects and policy implementation, it need to analysis and study agricultural direct subsidy policy of China deeply, based on theoretical and practical need to design agricultural direct subsidy policy of China, to achieve the dual objective of protecting national food security and increasing peasants income, the study has important theoretical and practical significance.The article used method of combining with qualitative analysis and quantitative analysis, empirical analysis and normative analysis, dynamic analysis and static analysis, comparative analysis and correlation analysis, analyzed the relevant concepts, basic theory, implementation status, implementation of the results, present issues of agricultural direct subsidy policy of China and experiences abroad deeply, as well as analysis and design of agricultural direct subsidy policy of China, proposed the proposal of adjustments and improvements of agricultural direct subsidy policy.Agricultural subsidy policy was policy which transferred payment in agricultural production, circulation and trade links for Government to support, protect and develop agriculture. The agricultural direct subsidy policy was an agricultural subsidy policy which Government paid financial subsidy funds to agricultural producers or benefit agricultural producers directly. China's current four agricultural direct subsidy policies existed differences in policy implications, policy objectives, the scope and targeted of subsidies, the allocation and payment methods of funds. Industry supporting theory, urban and rural co-ordination theory, welfare economics theory, public economics theory, agriculture multi-functional theory, and political game theory is the theoretical basis for agricultural direct subsidies.The introduction of agricultural direct subsidy policy of China was from four aspects of food subsidy policy reforms, World Trade Organization requirements, ensuring food security and increase peasant income. Food direct subsidy policy, seed subsidy policy and farm machinery purchase subsidy policy were through the pilot and then promotion, agricultural production means comprehensive direct subsidy policy was implemented nationwide directly. Agricultural direct subsidy policy mobilized the enthusiasm of peasants to grow grain, prompting peasants to increase grain planting area, increased grain yield, the country's total grain output had increased for 6 years. Agricultural direct subsidy policy had played an important role in increasing peasant income; subsidies had greater impact on peasants who owned the quantity of cultivated land and larger percent of grain income. The implementation of farm machinery purchase subsidy policies improved the level of agricultural equipment, speeded up the process of agricultural mechanization, strengthened the agricultural comprehensive production capacity, promoted the transformation of agricultural production and promoted the agricultural services industry, and promoted the formation of the diversification agricultural machinery input mechanism, promoted agricultural efficiency and peasant to increase incomes. Implementation of seed subsidy policy mobilized the enthusiasm of peasants to grow grain, raised the level of grain yields and rates of quality grain, contributed to the promotion of fine varieties, and achieved the large-scale cultivation and high-quality products at higher prices. Gray correlation analysis showed that the agricultural direct subsidy policy is an important factor which impact on food production and peasants income, the total role of subsidy policies for income to increase was slightly greater than the role of grain yield to raise. The role of increased production and income of the special direct subsidy policy were greater than comprehensive direct subsidy policy. Only food subsidy policy had greater role of increasing income than role of increasing production.Agricultural direct subsidy policy of China itself existed issues such as policy objectives not clear, cost-sharing of food subsidies unreasonable, the limit to scope and target of subsidies unreasonably, subsidies scale small, low standard of agricultural direct subsidies and large regional differences, what subsidies based on non-uniform, subsidies system imperfections and subsidy programs not clear, existed issues such as policy advocacy not in place, too much main body of implementation, high implementation costs, low degree of subsidies information technology and supervision not enough in policy implementation, in the policy support existed issues such as subsidies limited and management decentralized, policy-making bodies systems imperfect and subsidy policy lack of legal protection, Mai Liang Nan issues of peasant, the widening income disparity from subsidies, subsidies equity issues needed to be resolved.Foreign agricultural direct subsidy policy implemented were mainly the production flexibility contract subsidies, land fallow protection plans and counter-cyclical payment policy in the United States, the area subsidies, land fallow subsidies and environmental protection subsidies in EU, policy of stability operating of rice and direct income payment subsidy policy of mountain areas and Mid-level mountain areas in Japan and direct subsidy system of farmers received stability, agricultural structural adjustment, and maintain agricultural public service functions in South Korean. National direct subsidy policy varied in subsidies targets, subsidies strength, subsidies object, subsidies ways and other aspects. China implemented agricultural direct subsidy policy could be a seven-point drawing inspiration: change indirect subsidies to direct subsidies was an inevitable trend, the formulation and adjustment of agricultural direct subsidy policy was in the under the framework of WTO, integrated comprehensive subsidies and special subsidies, the implementation of direct subsidies and price subsidies was at the same time , improved the legislative work of agricultural subsidies of China, raised awareness of agro-ecological environmental protection awareness, establishing and improving the supporting system and measures of agricultural direct subsidy policy.From the nine aspects of agricultural direct subsidy policy of China such as the policy objectives, systems and the subsidy principle, the scope and the object, size and standard, subsidy ways, subsidy program, subsidies regulatory and subsidies content has been analyzed and designed, building a complete agricultural direct subsidy policy system of combination of comprehensive direct subsidy and specific direct subsidy, food subsidy policy and agricultural production means comprehensive direct subsidy policy belonged to agricultural comprehensive direct subsidy policy, farm machinery purchase subsidy policy and seed subsidy policy belonged to specific direct subsidy policy. Proposed to further improve the existing policy, set up the national land transfer subsidies, technology promotion subsidies, natural disasters subsidies, environmental subsidies, output improved subsidies, peasants training subsidies and land fallow subsidy policy as quickly as possible, and comprehensive direct subsidies took the way of grain contracts subsidies, improved subsidies standards, reduced subsidies cost, strengthened subsidies supervision, to achieve the two main objectives of protection national food security and increasing peasant income.To adjust and improve agricultural direct subsidy policy of China, in addition to follow certain procedures and requirements to implement, we should establish a long-term agricultural direct subsidy mechanism, improve the existing agricultural direct subsidies policies, set up national agricultural special direct subsidy policies, establish peasant returns from growing grain security system, stable grain minimum purchase price policy, establish production and marketing interests co-ordination mechanisms, the legislation of agricultural direct subsidy, the peasants to settle in cities, rural social security system to support.