Study On Production Cost Variation Of Middle Indica Rice In China

This paper is an empirical analysis concerning variation of production cost and its impact factor of middle indica rice in China.Its important significance,through anayzing and summarizing the law of time-series varing characteristic and regional diparity situation of production cost for sepecial agricultural product—middle indica rice,lies in offering the new ideas of controling or even reducing production cost of agricultural product and enhancing its international competitiveness,and increasing the incomes from working at farming.■Main contents:At the foundation of consulting the domestic and foreign related research literature,this paper firstly defined the "production cost" of agricultural product,and also explained its constitution and calculation.Then it research the production cost variation of middle indica rice from the follwing three aspects:1.The characteristic of time-series variation.This part mainly researches the characteristics of time-series cost variation,including average cost variation of the whole country and cost structure variation.It takes contrastive analysis as the main method for analysis.2.The charateristie of regional disparity.This paper takes the administrative area as a unit to anaylze the csot disparity in both total cost and structure.It also anayzse the stochastic dominace on the production cost among the main production area.3.The affected factors of production cost.On the basis researched above,this part takes the theoretical anaysis and empirical test for the factors that impact production cost.■Conclusions:1.Since 1990,the production cost of middle indica rice in China has increased dramatically,and its fluctuation appears four-stage characteristic.From 1990 to 2005,the production cost per mu(a Chinese unit of area,equal to 666.7 square meters)increased 1.89 times,and its annual increasing speed reaches 7.32%;The production cost per kilogram(Kg)increased 1.74 times,and its annual increasing speed reaches 6.96%.In general,the cost fluctuation from 1990 to 2005 experenced four stages:the slow speed increase at a low level stage from 1990 to 1993,the high speed increase to a high level stage from 1994 to 1996,the slow speed decrease at a high level stage from 1997 to 2000 and the slow speed increase at a high level stage from 2001 to 2005.All of these change were mainly caused by the ascension of agricultral capital and labor price.2.Regional dispariy of production cost appears so obviously.Because of the diversity in natural condition and the level of economic development among areas in China,technology,output per mu, amount and price of input per mu also differ among areas.Thus the production cost appers differently among them.3.The production cost per kilogram is more fluctuant than that of per mu.Production cost per kilogram is affected not only by that of per mu,but also by outpout per mu,which appers tremendous random caused by natural condition.4.Among the price factors that affected production cost,labor price was higher than capital price in extent rised.From 1990 to 2005,in the structure of production cost,the proportion of material & service cost went the same approximately as that of labor cost.The rise of material & service was caused by both the input's rise and price rise.However,as to the labor cost's rise,labor price contributed it in most extent.Because during these time,labor inputed was not increased,or enven decreased.5.The situation of regional resource endowment has an important affect to its production cost and cost structure.Because of the disparity in natural condition and level of social & econmic development during each area,the amount and proportion of capital,labor and land vary differently, even the relative value of special resource to its social and economic developing appears not the same.Thus the market price of resource could not gose equal to each area.■Countermeasure suggestion:1.Take many possible measures to lower agricultural capital price.We can carry it out from the following aspects:(1)Strengthen surport to agriculture offered by industry,enhance help and allowance to the enterprise that product agricultural capital.(2)Deepen the reform to agricultural enterprise and industry.On the one hand,deepen the reform inside the enterprise and enhance its efficiency;on the other hand,broaden the threshold of entering this industry and pull-in competitive mechanism.(3)reform the current circulating system of agricultural capital.Break the traditional pattern of monopoly saling and breeding a saling channel that charaterize with market comitition.2.Enhance the output per unit by technology progress.We can take measures as following:(1) Increase the fiscal input to agricultural research institution and its research activity.(2)Build a sound and reasonable agricultural research system.(3)Build a good agricultural technological spread system.3.Enlarge the scale of farmer's production land.We can take measures as following:(1)Take great effort to develop industry and business and speed up urbanization for the sake of transfer surplus labor in rural areas.(2)Reform the current census register system,employment system and social safeguard system.Transform farmer-worker to citizen.(3)Build up a good social safeguard in rural areas.(4)Cultivate and consummate the countryside land right of management circulation market,and thus promote the countryside land right of management effective circulation.4.Enlarge the country's investment to the field of Infrastructure of agricultural production and the current distribution,and reduce the natural and market risks of agricultural production.Because of large scale weaken or the countryside's collective economy organization's economic force and farmer's mobilization ability after reforms and openness,the country's investment should be enlarged.5.Enhance the mechanized level in agricultural production and reduce its labor cost.As the agricultural labor price's increase rate is bigger than that of the agricultural means of production, through raise the mechanized level in agricultural production and substitute labor by machinery,it can reduce the agricultural production cost effectively.6.Optimize regional layout of agricultural production,carry on its regional division according to the comparison superiority principle.According to the comparison superiority principle,each area has the cost income superiority agricultural product through the choice to carry on the specialized production and the layout respectively,and exchanges mutually,it may cause the respective agricultural product production cost to reduce,thus increases the farming income.■Originality:This research has two innovation spots:First,adopting the new calculation method of agricultural product cost when measuring variables.Thus the research conclusion may be different from the past. This article believes that the new agricultural product cost accounting method is more scientific and comprehensive than that of the beforehand,and the research conclusion is more reasonable consequently.Second,in the quantitative analysis,it uses the panel data and the fixed effect method to estimate the regional disparity of indicia rice production cost.This method was rare in the past.