A Research On The Policy Of Financial Support For Agriculture And The Efficiency Of Funds Invested

Agriculture is the most basic industries in the national economy, meanwhile,it is the industry with inferiority and positive externalities. Among the process of industrialization,government departments need to ensure continuous development of agriculture through financial support to maintain the stability of the entire national economy and society. At present,the foundation of agriculture in our country remains weak. In this case,it has important practical significance for ensuring continuous development of agriculture to study the policy of financial support for agriculture and seek the path of improving the efficiency of financial fund for agriculture.The main contents of this study include the following aspects:(1)theoretical analysis of the necessity to support agriculture and the economic effects of various agricultural support measures;(2)agriculture support policies in countries with different conditions and the experience and enlightenment;(3)a review of the evolution of policies about financial support for agriculture in China and some analysis about the size and structure of fiscal Expenditure on agriculture;(4) the analysis of the efficiency of financial fund for agriculture from three angles,including use, level and area.This study has the following innovations:(1)studying the agriculture support policies in four representative nations which have different natural resource endowment and economic conditions;(2)measuring the efficiency of financial fund on agriculture spending by governments in different levels;(3)measuring the efficiency of government expenditure on agriculture in different regions in our country by using three-stage DEA model in which environmental effects and statistical noise can be removed;(4)analyzing the efficiency of financial fund for agriculture from three angles,including use, level,and area within one framework.The main conclusions of this study are as follows:(1)The total scale of the financial expenditure on agriculture in our country is still inadequate,and meanwhile,there are significant differences in the scale of expenditure in different regions.In short,the stability of growth of the financial expenditure on agriculture in our country is still relatively poor, its relative size is still small,and the intensity of expenditure is still low. On the other hand, the scale and intensity of expenditure on agriculture are significant differencent in different regions. Overall, compared with the central provinces,the scale and intensity of financial expenditure on agriculture in eastern and western provinces are larger.(2)The efficiency of funds for agriculture is different among different expenditure items, and the differences also exist among different levels of government, but The horizontal and vertical distribution of the funds for agriculture is not consistent with it,that is, there is a deviation in the horizontal and vertical structures of funds for agriculture.(3)The measurement results by three-stage DEA mode show that government departments in eastern is the most efficient, while the efficiency score of the central region is lower than the western region, which is the lowest.So government departments in central region need to increase the efficiency of financial funds for agriculture more. In addition, the measurement results also show that differences in efficiency of government expenditure on agriculture do exist among different regions,but the difference were gradually reduced.Based on the conclusion, we think the policies about financial support for agriculture should be improved from the following aspects:(l)Mechanisms to ensure steady growth of financial funds for agriculture need to be established as soon as possible. On the one hand, policies and measures conducive to economic development should be made in order to expand the financial resources of local governments.At the same time,relevant laws and regulations of financial investment in agriculture must be established and improved for bringing expenditure on agriculture by governments at all levels into law.For mobilizing government initiative to support agriculture and rural areas, the development of agriculture and rural areas should be incorporated into the officer performance evaluation system. On the one hand,The tax sharing system in our country need to be improved.The division of economic rights and duty among governments at all levels should be more reasonable, for balancing financial resources between governments at all levels and making grass-roots government departments have ability to support agriculture.(2) The horizontal and vertical structures of financial funds for agriculture should be optimized.The expression mechanism of peasantry demand need be established for increasing the power of farmers in allocation of financial funds for agriculture and making agriculture projects truly meet the needs of peasants. In addition,the financial resources of grass-roots government which have information superiority need to be protected.(3)Government departments in our country need to exert the leverage of financial funds.Government departments need to encourage different types of social capital into agriculture and rural areas by a variety of ways such ad interest subsidy, guarantees, subsidies, etc, for exerting the skillfully deflected function of financial funds and improving its effectiveness.(4)Competition and incentive mechanism should be introduced to the supplies Of countryside public product and service so that the supplies efficiency can be enhanced.The government department needs to let non-governmental organizations participate in the supplies Of some kinds of countryside public product and service through "outsourcing","purchase"and so on forms.Meanwhile,corresponding quality inspection means and incentive mechanism should be established.(5)The management system of financial funds for agriculture need to be improved, and the supervision and examination for them must be strengthened. In our country the administrations involved in financial funds for agriculture need to be properly streamlined. Government departments should coordinate financial fund for agriculture came from different channels. Financial fund for agriculture should be properly integrated.In addition,the performance assessment system and supervision mechanism of financial funds for agriculture need to be established and improved as soon as possible, and interception or misappropriation of financial funds for agriculture must be prevented.