Analysis On The Effect Of Fiscal Supports To Agriculture Having On Farming's Income And The Trend Of Policies

Agriculture is the foundation of national economy and an important factor to keep our society for long period of order and stability, especially for our country With 7 million people, it is self-evident that agriculture is in the Strategic position during our country' economic development. Although in our country, lots of problems such as agricultural foundation is weak for Long term, rural areas are relatively backward, farmers are relatively poverty and so on have a large change, but contradictions are still prominent. Today the "three rural" issue Integrated is adverse factors restricting the development of economy in China, and has become a major issue to be solved.Solving the "three rural" issue is not something done overnight, it must receive government attention and support. Financial is one of powerful roles and inevitable way for government to solve the "three rural" issue. The development process of the agricultural economy in developed countries and many developing countries has proved that the important role of financial agricultural policy can not be replaced and also indispensable. So the research of finance polices in "three rural" issue is a real need it is also the trend of the times to establish a sound financial system about agriculture. This paper is aimed at researching what impacts of size and structure of financial support for the agriculture to farmer's income by an empirical point of view based on the data of per capita annual net income of rural households, the size and structure of financial support for the agriculture and so on from 1978 to 2009 are choosed, In order to complete the study, the software Eviews6.0 is used to set up an empirical model and get a return to analysis the impacts and the problems existing. Next, compared to developed countries with the financial support for agriculture and rural incomes policies, etc., doing a qualitative analysis for our fiscal policies to promote agricultural progress and the development trend of increasing peasant incomes, at last give reasonable policy recommendations.This paper is divided into five parts. The first part introduces the background., significance and methods, and innovation of this paper and deficiencies. In the second part, this paper introduces the view and current situation in the academia about the policies of fiscal for agricultural and farmers'income at home and abroad. Introduction of foreign literature mainly proceeds from the basic classical theory of agricultural economics represented by Francois Quesnay and Adam Smith, the famous American economist Theodore Schultz's Agricultural economic theory and the theory of public finance, at some aspects of the views such as basic position of agriculture and promoting agricultural development approach. For domestic academic point of view, the financial policies for supporting agriculture, increasing farmers'income and other aspects of research results of many economists are introduced. In the third part, this paper introduces the relevant policies of "Agreement on Agriculture"of WTO and the development histories and experiences of finance agriculture policy in the developed countries and regions, and also the changes of policy finance in agricultural are elaborated in detail from reform and open policy until now, at last of this part is implications from foreign agricultural policies. The fourth part is the empirical part in this paper. First, the current status of the farmers' income in our country is introduced, and quantitatively analyzes the features of farmers' income, like changes in growth, structure and some other aspects. Then the empirical analyses are respectively made from tow parts, size and structure of the fiscal spending in "three rural" issue, which have an effect on the farmers'income in our country. The result in the scale of fiscal expenditure is that the scale of fiscal expenditure increasing is the Granger cause of rural incomes increasing, not vice versa. In the structural analysis the model is established as:lnYi=β0+β1lnYi-1+β2lnX1i+β3lnX2i+β4lnX3i+β5lnX4i, and after significance test is carried out through least square fitting method, a conclusion is drawn that private investment and agriculture expenditure take a positive impact on the farmers'income, but the spending in Capital construction and agricultural science-technology make negative impacts, and then, the results of empirical analysis and interpretation of reasonable are given. The examples of experiences and lessons from developed countries are taken in fifth component based on the previous paper. At the end of this part, some problems and shortcomings in policy of financial support to agriculture impact on farmers' income are pointed; some reasonable policy recommendations are given; and finally forecast and analyze the trend of continuing to improve the financial investment policies for solving "three rural" issue.