Study On The Effect Of The Subsidy Policy On Farmers’ Camellia Production And Social Welfare

Edible oil security issues are still not optimistic.Protecting the country’s edible oil security is still one of the most important tasks that China facing.Developing the camellia industry is a new strategic approach to ensure the national edible oil security.In order to promote the development of camellia industry,the central and local government have introduced the camellia oleifera abel subsidy policy which subsidizes people according to different kinds of projects.Camellia oleifera abel subsidies are not only conducive to mobilizing the farmers’ enthusiasm to product camellia oleifera abel and protecting the safety of edible oil,but also promoting the farmers’ income and effeciency.However,the implementation of the current policy is not yet in place,and some farmes can not be timely or adequately subsidized.Furthermore,limited by the operation and management level,some farmers haven’t reached the subsidy standard,so the universality of the subsidy is also poor.It is not conducive to stimulating the production behavior of farmers.The central government’s No.1 document of 2015 and 2016 both stress the need to continue adhering and expanding the policies which are good to farmers,and which can make them rich and strong.Then what is the situation of the camellia oleifera abel policy’s implementation?Does the subsidy policy affect the farmer’s production behavior?What is the effect of subsidy policy on camellia oleifera abel’s production efficiency?What is the effect of subsidy policy on the camellia oleifera abel’s producer surplus,consumer surplus and social welfare?Normally,the camellia oleifera abel subsidy policy needs to be matched with the corresponding price support policy so that it can play a role in increasing welfare.And when the camellia industry develops to a certain stage,what kind of price control policy can better coordinate with the camellia oleifera abel subsidy policy to promote the development of camellia industry?It has important theoretical and practical significance to find out these problems.Based on the theory of government intervention,farmers’ behavior theory and compensation test,this study analyzes the effects of camellia oleifera abel subsidy policy on the farmers’camellia oleifera abel production and social welfare from two aspects that are micro and macro perspectives.The main contents include the following aspects.Firstly,analyzing the effect of subsidy policy on the farmers’ production behavior and production efficiency of the camellia oleifera abel.Secondly,using the multiple regression analysis model to analyze the effect of the subsidy policy on the farmers’ planting decision-making behavior and the investment behavior of the camellia oleifera abel.Thirdly,using the truncated regression model to analyze the effect of the subsidy policy on the head of household’s supply time on the camellia oleifera abel.Fourthly,using the DEA-Tobit model to analyze the effect of the subsidy policy on farmers’ production efficiency of the camellia oleifera abel.Fifthly,using the theoretical model of supply and demand to analyze the effect of the subsidy policy on the producer welfare,consumer welfare and social welfare.Sixthly,using the supply and demand theoretical model to analyze the changes of the producer welfare,consumer welfare and social welfare when camellia oleifera abel subsidy policy is respectively matched up with the camellia oleifera abel oil’s price stability policy and target price subsidy policy.The main conclusions of this study are as follows.Firstly,lacking capital,labor and technology,as well as small-scale decentralized management are the most important factors restricting the farmers’ production and business activities.Farmers are more concerned about the low yield of the camellia oleifera abel,the natural disasters and the high cost and so on,and they hope they can get some help which include the cash,good seeds,technical support from the government and other relevant departments.For the 216 sample farmers,the subsidy level between 0 and 1500 yuan per unit of area is the best,and most farmers feel that it should reach the level between 500 and 1000 yuan per unit of area.To some extent,it will improve the farmers’enthusiasm to product the camellia oleifera abel.Secondly,the subsidy income of the newly planted camellia oleifera abel has a highly significant positive impact on the farmers’ decision making of planting the camellia oleifera abel.The more subsidy,the more conducive to stimulating farmers to increase the area of camellia oleifera abel.In addition,household annual income has a significant positive effect on the farmers’ decision making of planting the camellia oleifera abel.But the labor cost has a significant negative effect on it.Thirdly,the subsidy income of camellia oleifera abel has a significant positive effect on the farmers’ investment behavior of camellia oleifera abel tending.The higher degree of the subsidy,the higher level of farmers’investment of camellia oleifera abel tending.In addition,camellia oleifera abel area and the labor cost have a significant positive effect on the farmers’ investment behavior of camellia oleifera abel tending.But non-agricultural labor skill,per capita net income of the villages and towns and the age of the head of household have a significant negative effect on it.Fourthly,camellia oleifera abel subsidy policy has a highly significant positive impact on the head of household’s supply time on the camellia oleifera abel.The higher degree of the subsidy,the higher enthusiasm to operate the camellia oleifera abel,and the more time which devotes to the camellia oleifera abel will supplied by the head of household.In addition,household annual income,the head of household’s non-agricultural labor time,joining the camellia oleifera abel’s professional cooperatives and the head of household’s time discount rate have a significant negative effect on the head of household’s supply time to operate the camellia oleifera abel.But the head of household’s social capital and his/her management techniques of the camellia oleifera abel have a significant positive effect on it.Fifthly,the technical efficiency and its components of camellia oleifera abel production are low among the five counties and cities.And the individual differences were significant.From the perspective of the county,Yongtai County>Youxi County>Pucheng County>Fu’an City>Changting County.What’s more,the average camellia oleifera abel subsidy income per unit of area has a significant positive impact on the technical efficiency and its component pure technical efficiency,but the effect on scale efficiency is not significant.In addition,selling the camellia oleifera abel fruit directly has a highly significant negative impact on the production efficiency.Moreover,to the scale efficiency,the number of camellia oleifera forest has a significant positive influence on it.But the distance between the road and the forest,the barren land compared to the fertile land,and the contracting mountain compared to the private forest land are all have a significant negative effect on it.Sixthly,When the camellia industry develops to a certain stage,if implementing the camellia oleifera abel subsidy policy efficiently and matching it with the corresponding price support policy of camellia oil timely,the producer surplus or consumer surplus will increase,and it just costs G of government subsidies,so the social welfare improved.It meets Kaldor-Hicks improvement,and it means that the camellia oleifera abel subsidy policy can be implemented.If consider the system cost,after deducting the government subsidies and the system cost,the social welfare is still greater than zero,and that mean the social welfare is improving.’The ’innovation of this research lies in these aspects.Firstly,based on the theory of government intervention and farmers’ behavior theory,this research considers the camellia oleifera abel subsidy policy as an important explanatory variable and puts it into the production decision models to analyze the planting decision behavior,the investment behavior of tending,and the head of household’s supply time on the camellia oleifera abel.The conclusions include that camellia oleifera abel subsidy policy is beneficial for farmers to increase the area of camellia oleifera abel,enhance the tending investment level of camellia oleifera abel,and increase the head of household’s supply time on the camellia oleifera abel.It has a certain innovativeness in the research perspectives and the research conclusions.Secondly,this research uses DEA model to measure the camellia oleifera abel production efficiency.And putting the important explanatory variable that the camellia oleifera abel subsidy policy into tobit model to analyze its effect on the production efficiency.The innovations are also in the research perspectives and the research conclusions.Thirdly,when analyze the the effect of the subsidy policy on the farmers’ production behavior,this research introduces the explanatory variable "time preference" to measure the farmers’ patience,and introduces the explanatory variable "risk preference" to measure the farmers’risk preference values so that we can judge the degree of the risk that the farmers’ can bear.Then we can reflect the farmers’ economic behavior more accurately.And the conclusions are about the higher time discount rate of the household,the less time will be used to the camellia oleifera abel by farmers,and the farmer’s risk preference values have no significant effect on their production behavior and production efficiency.That is also the innovation point.