The Research Of The Grain Direct Subsidy Policy Of China

As the base of national economy, agriculture always occupies a very important position in the development of economy and society. So many countries generally support theirs agriculture with subsidy and other ways. Because indirect subsidy policies such as market price support are inefficient, many countries changed their way of subsidy to direct subsidy.In 2001, the State Council issued"The advice to continue deeply the reform of the crops circulating system"and put forward the advice to grant directly subsidy for the grains to the farmers in several pilot regions. From 2003, the reform of grain direct subsidy carried out in the Anhui, Jiangxi, Jilin, Henan, and so on. By now, the reform has covered most provinces of China. The putting deeply into effect of the policy enhanced the farmers'enthusiasm of cultivating grain, while it also brought several problems.Based on the theoretical researches and Domestic and international practices, this paper researched the grain direct subsidy policy of China. The contents of this paper mainly include as follows: define a series of concept related with direct subsidy and analyze the direct subsidy policy of America, European Union and Japan; based on the theoretical foundation above, evaluate the effect of direct subsidy policy and market price support policy of China, by using policy matrix evaluation model developed by the OECD; describe the evolvement of grain subsidy police and the detailed practical situation, bring forward the problems existing in the grain direct subsidy policy of China; finally, according to the problems above, put forward several countermeasures.