Study On The Classification Of Rural Households Subsidies And Policy

The system of new "sannong" policy based on industry-repaying-agricultureand urban-rural integration has been gradually established since the16th CPCNational Congress. The central government introduced the policy to support andbenefit agriculture by abolishing agricultural tax and special agricultural product tax,implemented the minimum purchase price policy for key grain varieties anddeveloped incentives grants policy for major grain producing areas and the financiallystrapped counties. Besides the government also strengthened the support policy forthe construction of agricultural infrastructure, gradually forming a new era ofprotection and support agricultural policy framework.Farmers, as the subject of agricultural subsidies, are not only the main microeconomic operation of China’s rural society, but also an important part of our socialstructure. The production and operation of the farm household behavior is bothimpacted and well received by policy adjustment. The system to establish policies andmechanisms adapting to the farmers’ producing behavioral characteristics, and guidethe development of grain production is the vital direction for improving agriculturalsubsidies policy. The thesis presents an empirical analysis based on the impact offood subsidies to farmers to produce behavior and output levels from the perspectiveof agriculture classification, explores the effects of subsidy policy, hoping all of thiscan provide a reference for the improvements of the subsidy policy.The article mainly contains:1. Combing the evolution of China’s agricultural subsidy policy developmentprocess, analyzing the current situation and problems of subsidies. Focusing oncriticism on purposes, targets and effects of different periods subsidies andexploring the quantity, type, and goals of agricultural subsidies deeply, and pointingout the existing problems of the agricultural subsidy policy.2. Based on a field survey of277questionnaires, the thesis analyzed the effectsof subsidy policy on agricultural production behavior and the level of output ofpure-farmers, part-farmers I,part-farmers II and non-farmers with the multipleregression analysis method and at the same time compared them horizontally. Itdelves into the association degree of a series of influence factors of different farmersbehavior to grow grain and subsidy policy.3. Using empirical mathematical programming methods, analyzed the producebehavior as well as the level of output changes of different farmers in different policyenvironments. These policy environments, including grain subsidy policy adjustments,rising food prices, prices of production materials and labor prices, arable scale change.The focus is to compare the effects on the same type of farmer production behaviorand the output level under different policy mixture.and also contrast different farmersunder the same policy environment, in order to provide a theoretical basis for thedevelopment of a more reasonable subsidy policy.4. The paper also analyzed the development background, the main experience of foreign policy of agricultural subsidies from the perspective of differentiated subsidyanalysis and put forward the revelation of the subsidy policy to Chinese improvement.This research brought out the following conclusions:1. The degree of part-time behaviour affects on the grain acreage and productlevel.Different levels of Part-time farmers is the main factor affecting the significantdifferences of grain acreage accounted for the family cultivated area. The proportionof an important food arable land accounted for families of part-time farmers andnon-farmers is higher than that of the total cultivated area of pure farmers.The grain commercialization degrees varies owing to the degrees of part-timefarmers. Overall, food commercialization of part-time farmers is higher than thedegree of commercialization of pure farmers and non-farmers.2. Part-time farmers are an important force in food production.The survey found that the main body of the current food production is Part-time Ifarmers and Part II farmers. The reason lies in the slight difference of farmland scalebetween pure farmers and part-time I and part-time II farmers. Relying solely on thecultivation of food crops is difficult to meet pure-farmers’ family needs, and thereforeplanting economic crops and breeding livestock farmers in pure farmers accounts fora high proportion, and a smaller acreage for food crops. However, the familyincomes of part-time farmers come from non-agricultural areas, and in order to reducethe agricultural production time they generally grow food crops because of a highdegree of mechanization, low labor intensity, and the easy management.3. Agricultural subsidy policy can bring forth different impacts on the productionbehavior of different farmers.The impacts of subsidy policy on labor time of all types of farmers cause nosignificant changes. Farmers’ agricultural labor time change is affected both by suchexternal factors as the local non-farm employment opportunities, the level ofagricultural mechanization and by some internal factors like farmers’ health status andthe number of family labor. That subsidy policy impacts on the5%for the changes ofpure farmers’ agricultural capital investment is significant while10%for non-farmers.But the impacts are not significant for part-time farmers. Subsidy policy for apart-time farmers grain acreage changes has passed the5%level of significance test,but has no significant effect on the pure farmers and non-farmers.4. It diverges that impact of agricultural subsidies policy on agricultural outputlevel of different farmers.Subsidy policy changes in part-time II farmers passed by the5%significance leveltest, on the non-farm households food production by the10%significance level testwhile no significance on pure farmers and part-time I farmers. It is probably becauseof the high proportion of arable land to grow food crops of part II farmers andnon-farmers, and thus the impact of changes in the amount of subsidies for foodproduction is significant. However, the effects of changes are not significant insubsidy policy changes on the various types of farmers agricultural income accountedfor the proportion of household income.5. Joint implementation of agricultural subsidies and other policies lead to a more significant impact on agricultural production and output levels.The impact of a pure agricultural subsidies policy is less than the degree of theimpact of joint implementation of all types of policy. Specifically, the increase inagricultural subsidies amount and the rise of crops’ price carry significant impacts onfarmers to grow food behavior. The implementation of the policy to increase theagricultural subsidies and expand the land area can also affect farmers significantly,but the policy of agricultural subsidies, agricultural production materials prices, therise of prices of agricultural labor occurs at the same time, farmers will reduce graincultivated area, agricultural labor, time, and the grain-growing capital investment.6. Food prices, local non-farm employment opportunities is an important factorto affect household food production.If food prices increase, the enthusiasm of farmers to produce food will also rise.However, as the local non-farm employment opportunities increase, farmersparticipating in non-agricultural labor time will be extended. Thus there is a trend ofexpansion of arable land to grow food crops based on the shortened timeconsiderations of agricultural labor.