Study On The Effect Of Staple Grain Price Support Policy In China

As a developing country which has a large agricultural population,the stability of grain price,growth of grain output and increasing of farmers' income are the most basic problems in the development of China's agriculture.To realize the strategic requirements of "grain self-sufficiency and food security",Chinese government has made a great effort.Series of policies have made brilliant achievements,while the multiplicity of policy objectives has caused a dilemma and brought huge policy costs.This thesis studied the effects and problems of staple grain price supporting policy and the new reform in grain price support policy based on the minimum purchase prices policy of wheat and rice and temporary storage policy of corn.The main content of this study includes five parts.Firstly,studied the price supporting effect of staple grain price support policy thought the panel data model and the VEC-DCC-GRARCH model by using three kinds of staple grain price data of domestic producing and marketing areas and home and abroad.Secondly,studied the output and income increasing effect by constructing a DID model and using the farmer data of the Research Center for Rural Economy of Ministry of Agriculture.Thirdly,explored the staple grain prices support policy from the perspective of welfare cost.Fourthly,studied the effect of corn producer subsidy on farmers' planting structure adjustment through the Logit model based on the survey data in Jilin Province.Finally,put forward some corresponding policy recommendations.Following conclusions can be drawn through combination of theoretical and empirical methods:(1)Staple grain price support policy has propped up China's grain market price strongly,and reduced the impact of international prices fluctuations on the domestic market,which has stabilized the domestic grain market.Meanwhile,the pertinence and effectiveness of the policy are insufficient,and it is not achieving the interests of compensation for major grain producing areas,but resulting in short supply and high prices in some areas.In addition,the implementation of price support policy has distorted the formation mechanism of domestic grain market price seriously and hindered grain market-oriented process in China.(2)Staple grain price support policy has played a certain effect on increasing grain output.However,the effect is not always realized by increasing the sown area of grain,due to constraints of the limited land resources and smallholder production and operation mode in China,wheat and rice minimum purchase prices policy to increase grain output by increasing inputs like pest,fertilizer and machines,while temporary storage policy of corn to increase grain output by increasing inputs and enlarge the acreage at the same time.The planting area of corn has increased excessively,which has caused an unbalance of the three kinds of staple grain planting structure to a certain extent.(3)Staple grain price support policy has a positive effect on the increasing of farmers' income of grain.The increment of per capita household income is mainly driven by the increasing of other income and development of local economic.Even though income of grain is an important part of rural residents' income in China,but it is not the main source of farmers' income growth any more.So the increasing of farmers' income cannot simply rely on the promotion of food policy,while needs a combination with other industrial and employment policies.(4)The implementation of grain price support policy has played a certain effect on the stability of staple grain prices and output and the increasing of farmers' income.However,grain price support policy has caused distortion of price formation mechanism,low efficiency of resource allocation and brought huge financial burden and stock pressure to the government.Producer subsidy system causes smaller losses on the total social welfare,and reduces distortion of the market through avoiding conflict between the policy goals.Therefore,it is an inevitable trend to change staple grain price support policy to producer subsidy policy to deepening policy reform of China's staple food price support.(5)The implementation of corn producer subsidy system has made a reduction of corn acreage because of the decline of corn price,which resulting in a reduction in the expected income of corn producers.Meanwhile,it is not promoting the planting of corn concentrated to the large-scale producers and advantageous production areas,but increasing market risk of large-scale farmers.Also there are some blindness and risk in the planting structure adjustment due to the low standard of subsidies and lack of supporting policies.How to compensate the small farmers' income reduction,as well as how to guide farmers planting structure adjustment reasonably is still need to pay attention to.Based on the above conclusions,following suggestions are put forward.Firstly,from the grain price support policy reform itself,gradually reform the wheat and rice minimum purchase price policy to eliminate distortion of market mechanism,and establish the corresponding interest compensation mechanism to protect farmers' income.Secondly,from the point of reducing the cost of grain production,encourage appropriate scale management,and improve the efficiency of grain production to enhance the sustainable development of grain production.Thirdly,from the perspective of increasing farmers' income,we can increase farmers' grain income through the cultivation of new farmers,and widen the channels of increasing income to increase other income.Finally,from the implementation of corn producer subsidy system,governments at all levels should take on responsibility to ensure the implementation of the policy,and publish the plan and rules as soon as possible,and verify corn acreage accurately,and raise subsidy standard appropriately to safeguard the farmers' basic income,and strengthen coordination between various policies to adjust the structure reasonably.The innovation points of this study are as follows.Firstly,we analyzed the economic effects of the policy and the effect on farmer households at the same time from macroscopic and microcosmic angle.Secondly,we tried to put market effect,yield and income effects of the grain price support policy into one framework to analysis the coordination and conflict of the three policy objectives systematically,and drawn some usefully conclusions.Lastly,we knew the latest implementation progress of the corn producer subsidy system through the investigation in Jilin Province,and in-depth studied the impact of new round of grain price support policy reform on the adjustment of planting structure.