The Impact Evaluation Study Of Chinese Food Financial Direct Subsidy Policies On Food Quantitative Security

Food is the most basic people’s production and life’s material. Food is a very important strategic material relating a country’s safety. From ancient times to the present, food security is always been a major strategic issue, which concerns national economic development, social stability and national self-reliance. Direct subsidies to grain are all governments’most important and common policy-tools to ensure food security. In2004. China began to implement food financial direct subsidies’policy system. Its core goal is to make sure to increase food production; the first is to ensure food quantitative security. So far, food financial direct subsidies has been put in practice for9years, which motivated peasants to a great extent to plant grain and brought about eight harvests in grain production. The contradiction of Supply and demand relieves temporarily. But Chinese food security’s foundation is still weak. And the marginal effect of food financial direct subsidies is decreasing. Farmers lost their policy attractiveness gradually. Grain direct subsidy embodied as symbols significance and guiding role. But, if we completely abolish all food financial direct subsidies, it may cause a great loss of national food quantitative security. Because food financial direct subsidy policies’running-time is short, the research of academic circles is still in the primary stage. And existing researches on grain direct subsidy’s implementary effect are different. So it is necessary for the impact of Chinese current food financial direct subsidies on food quantitative security to do a number of systematic, comprehensive and objective evaluations, in order to seek perfect strategy on the basis of stabilizing current basic policy to maximize its policy effect, achieve the policy goal, to ensure the national food security.This paper based on the national food security’s objective as the background, and based on the theoretical basis of the food subsidies as the foundation. It evaluates the impact of current food financial subsidy policies on food quantitative security.This paper analyzes the relationship of food financial direct policy and food quantitative security, and economics theory analysis, constructing mechanism. Then it evaluates effects and efficiency of current different food financial subsidy policies on food quantitative security using empirical methods and macro statistical data. It use the survey data and county-rural interview data to do the empirical effect analysis evaluation and feedback of food financial direct subsidies on food quantitative security based on farmers and grass-roots staffs’level. Applied descriptive statistical analysis and case analysis, comparative analysis, and other means, this paper expounds the grain-farmers’policy knowledge, attitude, satisfaction, implementation and evaluation of food financial direct subsidies on food quantitative security from subsidies issued basis, subsidies standards, payment and time details. Finally, this paper evaluates the policy system’s sustainability and future expectations to ensure the national food security’s original intention and put forward some pertinence countermeasures and further studying problems.1. Main research conclusions (1) Food financial subsidy policies really play a big part in food quantitative security, but its impact degree is not high. Grey relational grades of the food financial direct subsidy policies to grain total output, per capita occupancy of grain, grain sown area and grain self-sufficiency rate are0.639812,0.64031,0.640183,0.640296.(2) The grain direct subsidy’s effect is the worst in the four kinds of subsidies. Its effect of improving self-sufficiency rate of grain is superior to the effect of mobilizing the farmers’ enthusiasm and grain production. The effect made by productive special subsidies is better than that made by comprehensive income subsidies. Productive special subsidies and agricultural comprehensive direct subsidy are better than grain direct subsidy in improving grain yield, per capita occupancy of grain and grain enthusiasm. Productive special subsidies are better in the effect of promoting grain production. Machinery purchases subsidy will be beneficial to increase grain production, per capita occupancy of grain, the farmers’enthusiasm and to ensure grain self-sufficiency rate level.(3) Grain farmers think that the effects of food financial direct subsidies on food quantitative security are not high. The willing influence of food financial direct subsidies on expanding grain area is also weak. The staffs and leaders who are in charge of subsidy’s work thought that the security effect of food financial direct subsidies on food quantitative security was not obvious; the meaning was not quite and also did not achieve the desired policy’s goal. Most farmers know food financial direct subsidies’policy, but the degree is low relatively. Grain farmers have get grain direct subsidy, agricultural comprehensive direct subsidy and seed subsidy, but the coverage of machinery purchases subsidy is not high. Grain direct subsidy, agricultural comprehensive materials direct subsidy and seed subsidy are main factors of improving farmers’enthusiasm in the four kinds of subsidies. Farmers think "direct subsidies"(grain direct subsidy+agricultural comprehensive direct subsidy) are their first factor to improving their enthusiasm, its reading of approval of farmers is higher. Farmers are satisfied with the current food financial direct subsidies in general. They are satisfied with payment and time. They uphold food financial direct subsidies very much.(4) System effective provinces concentrated in most major grain producing areas and equilibrium production and sales areas, and non-effective provinces concentrated in rapid economic developmental provinces and poor provinces. And the return to scale of non-effective provinces is increasing. Through analysis of the non-effective provinces’ slack variable shows that there is a definite relation between input redundancy and output shortage of food subsidies, improving efficiency is changing from the non-efficient cause, such as fair use of seed subsidy, machinery purchases subsidy,food comprehensive subsidies’standard, rice well-bred subsidies’standards. This will directly affect the increase of the total grain output, per capita amount of gain, and the farmers’enthusiasm.(15) China have sufficient financial ability to support the continuation of food financial direct subsidies. From the perspectives of financial investment, financial capacity, the proportion of direct subsidies for grain in farmers’income and their comparison between developed countries, we believe that factually the direct financial subsidy policy is necessary to continue, and is capable to continue under the financial support. Supposed that the payment standard has been improved30%-50%, the state financial capacity is still available.(6) Farmers expect that food financial direct subsidies can execute continuously. Through the food cost benefit analysis, in terms of the comparison with the opportunity cost, it calculate food financial direct subsidies’theoretical standard. Farmers expect to be paid by the area of land and tax in the form of passbook and bank card. The subsidy standards should be improved, but the improved expectation of subsidies is not high, about40%of the farmers hope to improve11%-30%higher of the original standard, but they generally hope the subsidy standard is higher, then better, if it is possible.2. The policy’s suggestions(1) Increasing subsidies strength, and simplifying the process for convenient operation.(2) Under the circumstances of limited food subsidy funding, the food subsidies can be collected and used to increase agricultural infrastructure investment.(3) Supervising farmers’cultivating situation, using status of grain seed, quality and price changes of agricultural machinery.(4) Stabilizing and perfecting seed subsidy and machinery purchases subsidy.(5) Improving the local food subsidy’s way and subsidy standard, improve the efficiency of subsidies.(6) Perfecting scale management and expanding the food subsidies" flexible diversity.(7) Establishing the four linkage mechanism of food production, food financial direct subsidies, food production cost, food prices.(8) Legislation to ensure The stability of food financial direct subsidy policies.3. The principal innovative points(1) This research establishes the influential mechanism between the direct food financial subsidy and food security in amount. And it has improved the theoretical level and the scientific for these problems.(2) This research is based on the macro data and the micro survey data to set up the evaluation index to evaluate the effect of the food subsidy policy using the Gray Related Degree Method. And this thesis analysis the influential effect between income subsidy and the production subsidy, it also analysis gradually the implement effect of every subsidy policy.(3) This study has examined the sustainability from the perspectives of financial investment, financial capacity and the comparison with the developed countries. Then it calculates the subsidy standard expected by the farmers if they choose to return using the cost benefit analysis method.