Study On The Mechanism Of Agroindustry Strengthening The Farmer's Income

Agriculture, rural and farmer are always the basic problems of our country's economic development. It is the key to solve the problems by increasing the income of the farmer. The party and the government always pay more attention to the problem of the farmer's income and set down some policies to promote the income of the farmers. In recently, the farmers' income wandered and the differences, which are 3.2:1 in 2004, between the farmer and the townsman's income began to enlarge. It have been paid more attention to the development of agroindustry. But agroindustry lagged in our country and didn't give out it's effect effectively. People began to pay more attention to the development of the agroindustry.This article analyses the actuality and the problem of the agroindustry's development and the income of the farmer. It uses the qualitative analysis and the quantitative analysis to study how the agroindustry to promote the income of the farmer. We can use the data we had to approve the relation of the agroindustry and the farmer's income. And then, we will know they are correlative. After that, use the econometric model to measure the contribution rate of the agroindustry to the farmer's income. Finally, we can make a conclusion and make suggestions about the agroindustry and the farmer's income.The study indicates that the development of agroindustry help to increasing the income of peasants in follow aspect: First, the development of agroindustry prolongs the length of agriculture, enhance the value-added of farm produce. Second, the development of labor intensive Agroindustry helps peasants to take up an occupation. Third, the development of Agroindustry drives the developing of service industry, accelerates agricultural industrial structure adjust. Fourth, the development of Agroindustry brings into play the comparative advantage of agriculture, enhances farm produce's quality, boosts the international competitive capacity of our country's farm produce. Fifths, the development of Agroindustry in favor of enhance agricultural industrialization and systematization degree, impels primary farm produce translating into high value-added farm produce. Sixth, the development of Agroindustry brings along the business, carrying trade, tourist industry, service industry developing andconcentrating, expedites the development of wide place in the road.At the same time, demonstration indicates that Agroindustry increases the farm's income notability. From 1978 to 2003, we can see from the correlativity between per capital industrial value of farm produce and farm' income, that their correlation coefficient is up to 0.92. and during research the econometrics model about Agroindustry and farm' income, we can find that in the future, the increasing range of crop planting area and agricultural finance payout is limited. So the development of Agroindustry is one of the mostly approach to accelerate the increasing of farm's income.