The Performance Of Fiscal And Financial Policy To Improve Farmer Income

The farmer Income problem is the key to solve the "three rural" crux of the issue. Agricultural is leading industry in our country, which is the foundation and backing of sustainable development of the national economy. Therefore, the protection of fundamental position of agriculture and the promotion of farmers increasing income has become a hot spot to the government, as well as a difficult problem.In recent years, "more for less, and allow flexibility" under the principle of tax reform in rural areas, rural financial innovation policies to support and benefit agriculture has achieved fruitful results, the policy system and constantly improve the income of farmers has increased steadily. However, the current capital investment in rural agriculture is still very difficult to make up for the "event of default", coupled with shrinking trend of rural financial institutions, rural development difficult.Firstly, this paper start with the reality of the farmer income, in-depth analysis of a single source of income for farmers, low level of imbalance, the consumption structure and simple, explained the development of rural financial and monetary policies and problems of course, so the development of rural finance is lagging behind and in urgent need of government to increase capital investment in rural areas. Secondly, we selected a more significant indicator system: the fund for agriculture, rural credit, agricultural taxes, rural insurance, through the use of Cobb - Douglas production function as the theoretical basis of our model to quantify these indicators of income generated by farmers performanceConfirmed by our empirical analysis: rural credit with respect to expenditure and revenue performance of the income of farmers even more apparent. Inadequate funding of rural development, capital flows result in poor rural economic development lacking behind. Made great development in rural finance, increasing rural credit for farmers bring more capital gains and expand revenue-generating space.The targets of policy, the Financial Fund for Agriculture in a short time is difficult to have a major breakthrough, the project of rural taxes and fees remaining the same, therefore, fiscal policy to the potential of the income of farmers is very limited. The rural financial regulation has not yet fully leverage. If this is a breakthrough, develop the rural finance in priority, the problem will be solved farmer income. Therefore, we must make monetary policy and fiscal policy to be effective communication and coordination, speed up development and innovation of rural finance, and guide more funds into rural areas, in order to fundamentally solve the problems of farmer income.