| Agricultural subsidy is an important part of agriculture incentive policy of government in the process of urbanization and industrialization. The overall goal of subsidies is to increase agricultural earnings, stimulating overall output level of agriculture and ensure effective supply of agricultural products, promoting continuously increasing of peasants’income, to realize the coordinated development of thrice industrial. Since1978, China’s market-oriented reform first began from agriculture and rural area. Through the continuous reform, although our agriculture development created the wonders in the world, per capita net income of peasants especially farming income is still low, and the income gap among peasants is gradually getting larger, so the food security situation still has a severe future. To solve this problem, China turns national agricultural subsidy goal from improving the agricultural production to promoting famers’ incomes. In a broad sense, agricultural subsidy has a great meaning in improving famers’social position and welfare levels, promoting social harmony, and implementing environmental protection, whose micro economy profit and macro social profit stay exactly the same as the leverage effect of public finance serving economy and correcting the market failure.Since china’s accession to the WTO, food supply has basically realized self-sufficiency, the basic position of agriculture in the national economy is more stable, and agricultural industry has supported the sustained rapid and sound development of the national economy in the past34years. BUT with only0.08hectare farmland per capita, China will face the challenge of resources constraints and environmental degradation to further improve the overall grain production capability. It’s difficult to guarantee the National food security if China only rely on endogenous development power of peasants and the market mechanism. Therefore, we must strengthen the government subsidies and at the same time pay attention to the way and the effect of implementation, in order to make sure it will effectively promoting agricultural development, increasing farmers’income, as well as accelerating modern agriculture construction. Thus it can be seen that according to the change of international agricultural situation since China’s accession to the WTO as well as the new situations of each country’s agricultural protection policy and trade policy adjustment, it is necessary for us to do some systematic research on the WTO rules, and the relevant theory and policy of agricultural subsidies in developed countries. It is also important to evaluate the performance of the existing agricultural subsidy policy, and to explore the connotation and type of Chinese agricultural subsidy policy in the new stage, in the light of strategic problems during the Chinese agriculture development and food security situation.Based on such a sense, this paper firstly analyzes China’s agriculture subsidies policy change. Taking relevant concept definition as a starting point, we made a deeply research on China’s subsidy policy in the aspects of basic theory, implementation effect and international experience by combining the normative analysis and the positive analysis, comparative analysis and correlation analysis. Meanwhile, we choose Henan Province as the typical case to study the logical frame and operation mechanism of China’s agricultural subsidy and make an empirical test on the policy efficiency. Finally, we come up with the countermeasures and suggestions on adjusting and improving the agricultural subsidy policy. This paper includes9parts, the main contents and conclusions are as follows:Part1:Introduction:To introduce background, meaning, contents, means and innovations of the research.Part2:After defining the agricultural subsidy and domestic agricultural support classification, we elaborate the economic reason for agricultural support based on Weak Agricultural Industry Supporting Theory, Agricultural Products Price Fluctuation Theory, Public Supply Theory and Urban and Rural Contrast Coordination Theory; then we use economic model to analyze the policy’s effect on peasants’welfare and production cost. The results are:China agricultural subsidy is efficient in food security, peasants’income improvement and match with Kaldor Improvement in the welfare extent. From the production cost viewpoint, both food production including subsidy to improved crop strains and subsidy to agricultural machinery, and income subsidy including direct grain-growing subsidy and comprehensive agricultural subsidies, make an positive effect on grain yield increase.Part3:This part analyses the background, policy target and the difference of China agricultural subsidy policy in different stages to conclude the evolvement path and rule. The conclusions are as following:1. China agricultural subsidy policy experienced three stages during the development process, which were correcting "Agricultural Loss, Industrial Benefit", correcting "Farmers Loss, Citizens Benefit", and correcting "industry support agriculture, cities drive rural area, famers get benefit".2. There are big target differences between three stages: The subsidy policy of the first stage is the non-balanced development of workers and peasants, during which agricultural development was facing negative subsidy policy environment, and citizens and agricultural enterprises were the main beneficiary. The subsidy policy of the second stage was to accelerate the marketalization process of agricultural products, but the effect of increasing peasant’s income was not obvious, and the gap between urban and rural area was getting larger. In the third stage, the policy focused on the direct subsidies on farmers, and it has an important effect on improving farmers’income and promoting sustainable development of agricultural.3. The evolution of China agricultural subsidy policy is synchronizing with the evolution of China’s agricultural development environment, national economic development strategy, and social-economic environment, and affected by the government and peasants’ preference and game power.Part4:Taking the main grain production zone (Henan Province) as the sample, we make a survey on agricultural subsidy using statistical analysis method and field survey data. The conclusions are as following:1. Agricultural subsidy encourages the farmers to plant grain and the grain price has a big effect on peasants’decision. Price support is the most efficiency tool to promote grain production.2. Income subsidy has positive influence on increasing income of farmers, especially those with low-middle-income or low-income. But the overall contribution rate is low, averagely less than6%.3. Superior seed subsidy contributes to prompting farmers to use high quality seed and improving grain yield and quality.4. With the improvement of labor cost, agricultural implements purchase subsidy improves the level of farm mechanization especially the mechanization of food crops. It also promotes agricultural structure to develop in a direction conducive to food crops to a certain extent, and effectively promotes the sustainable growth of farmers’income by providing service of agricultural machinery operation.Part5:Based on the neoclassical economics analysis framework, and the theoretical analysis on effect of grain acreage and yield of agricultural subsidy policy, we use Nerlove’s Adaptive Model, C-D function and survey data of Henan Province, to make performance evaluation on agricultural subsidy policy from micro dimensions. The conclusions are as following:1.agricultural subsidy has significant effect on the grain planting area and yield. Namely, increasing agricultural subsidies amount can directly enlarge grain planting area and improve the grain yield, which has provided a empirical support for improving agricultural subsidy policy.2. Agricultural subsidy policy can effectively encourage peasants to enlarge grain planting area, improve the fine and intensive management level and grain yield per hectare, and guarantee the national food security.3. Agricultural subsidy policy inspires the enthusiasm of the local government to encourage peasants growing food and has good policy guide on the development of grain industry.Part6:To estimate the direction and degree of agricultural subsidy policy that affect the farmers’income level, and to evaluate the performance of agricultural subsidies policy from the micro view of peasants, according to analysis framework of peasants income change affected by agricultural subsidy policy. Research shows that:The holistic distribution of per capita net income of a peasant family shows a high-income-inclined skewed normal distribution. The gap between Agricultural and non-agricultural income of peasants are significant;2. The manpower in a family, the ability to resisting the increase of agricultural material cost, and the ability of food price negotiation influence peasants’income obviously, but the advantage of cultivated land scale does not;3It has positive effect on increasing per capita net income of peasant families by increasing agricultural subsidies and expanding the scope of agricultural subsidies, and it offers more marginal return rate for the farmers with higher income.Part7:To expounds the economic principles of agricultural subsidy policy, and to analyze empirically on the technical efficiency, scale efficiency, and the influencing factors of China agricultural subsidies policy from the micro perspective by using DEA+tobit model. Conclusion is as follows:1. The number of times that peasants getting subsidies has a negative impact on policy efficiency;2. Agricultural subsidies of per unit of field has a positive impact on VRS with significant level of1%. For peasants, the scale efficiency of agricultural subsidies is keeping increasing, the wider the subsidies scale, the better for improving the comprehensive efficiency of agricultural subsidies;3. Peasants’evaluation on the calculation method of agricultural subsidies has a positive impact on the technical efficiency, and the significance level is higher;4. The influence of Peasants’reaction on increasing price of agricultural materials on VRS technical efficiency, is realized through the transmission mechanism.Part8:By comparing and analyzing the changing of agricultural subsidy policy in US, EU and Japan, we summarize the experience of them for our reference to improve our agricultural subsidy policy. The conclusions are as followed:1. During the early time of implementing agricultural subsidy policy in US, EU and Japan, domestic agricultural are in preliminary stage, which means it was very difficult for them to guarantee the food security and stable incoming of peasants. Thus the agricultural subsidy of them in this stage is protective.2. Agricultural subsidies policy needs to be innovated and improved gradually along with the agricultural development in different stages. To select reasonable agricultural subsidies tools and adjust agricultural subsidies range are the major economic and social problems that need to be considered in the process of agricultural development by all the countries.Part9:We come up with the five suggestions to improve China agricultural subsidy efficiency based on the above analysis:First, improving the agricultural subsidy policy system in order to ensure food security, agricultural products supply and the increase of peasants’income; Secondly, building a operating mechanism of agricultural subsidies policy with taking the market mechanism as the principal thing and supplying by administrative control; Thirdly, coordinated measures for agricultural subsidy policy would be build by taking the price support as the foundation and organically bonding a number of subsidies. Fourth, perfecting the social service system of agricultural subsidies, and establishing policies and measures of agricultural subsidies based on peasants’characteristics; Fifth, promoting the legalization process of agricultural subsidies, and improving the management and supervisory mechanisms of the agricultural subsidy policies. |
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