Imapact Of Direct Subsidy On Grain Production And Farmland Use

Grain is one of the most important goods for the country's economic development, and its production change touch on the grain security of a country or a region. In resent years, the reduction of grain production absorbed the government's attention. To development, the government starts a series of reforms, including increasing production subsidy and reducing agricultural tax. From 2004 on, the agricultural subsidies policy has a totally reform. The most important are grain direct subsidy, high-class seeds subsidy and agricultural machine subsidy. The grain production got restorative increment by these reforms. The study of the efficiency has great practical significance and it is beneficial to policy adjustment scientifically and quantitatively.The study is to analysis the main sources of the grain production development with production function and supply-response function including policy variable, from the angle of production and supply response, and to table a proposal about grain production development and farmland use. The emphasis of this paper is practical analysis on effect of grain direct subsidy on grain production development and.The study shows that, in all the traditional inputs, cultivation dimension is the most important factor and mainly source to production, no matter to grain, rice or wheat. So in order to make sure of the production development steadily, the future agricultural policy should aim to the perennial farmland use. So the effective cultivation policy and protective means should be established to make sure of the lasting utilization of farming land.The prices of different crops have different impact to the utilization of farming land. Rice price has positive and significant effect. While grain and wheat prices have no significant effect, even have negative effect to utilization of fanning land, which means price is difficult to coordinate the production of agricultural goods. Grain price is sensitive to the change of production, though the supply elasticity is low and has limited effect to coordinate grain production. So, stable market price is very important to stabilizing the grain production.Grain direct subsidy has significant effect to grain production, and it affects production by stimulating farmer expanding cultivation dimension. Grain direct subsidy can not only...