Policy Analysis On High-quality Seed Subsidy In China

China has introduced a series of policies intended to benefit farmers in recent years. The high-quality seeds policy is one of the most prominent policies. This paper analyzes high-quality seeds policy from pure economic theoretical perspective and demonstrates the effectives by using classical economic model. Finally, some potential deficiencies and relevant suggestions will be presented based on the former analysis.Based on the implementation of high-quality seed subsidy, several features are confirmed in this research. First of all, it is conducive for the advance of agri-technology with the popularity of high-quality seeds. In addition, the form of the subsidy should be mainly concentrated on some special areas and regions where great difference does exist should be considered more; What'more, institutions should play great part especially the agricultural sector; Finally, the willingness of rural residents should be respected and this will lead to the behavioral difference of rural residents. The existence of these merits will be good for Pareto improvement and will enhance the welfare of the whole society. Besides, it will also have a direct impact on the return on farming which shows that it has the feature of green-box. policies. Meanwhile, some limiting factors exist which have negative impacts such as the improvement of product structure, the administrative cost and the increase of farmers'income.This paper takes high-quality seed subsidy of wheat for example considering the features of high-quality seed subsidy and the behavioral differences among farmers into consideration. Surveys will be carried out with the purpose of understanding the farmers'behaviors of selecting seeds. Using traditional production functions, empirical analysis will be done with the ratio of high-quality seed subsidy as the variables. The result shows that the ratio is very significant and it has a positive impact on the production of wheat, that is to say the high-quality seed policy is very significant. High-quality seed policy is conducive to the improvement of food structure and the increase of food production. Only when these features appear, the farmers will show great enthusiasm towards the policy.Due to the existing achievements of high-quality seed policy, it is noticeable that there are some problems in practice:⑴the high-quality seed policy covers only a relatively small area and the emphasis is mainly about food safety;⑵the lack of money has negative impact on this policy;⑶the process of implementing this policy is so complicated that the cost for management is high;⑷the propagating work of the government is not enough and information asymmetry exists;⑸there is no feedback regime about rural residents and,⑹the popularity is restricted by the agri-technology extension system; it is difficult to propagation of the policy.Relevant suggestions are proposed based on the problems:⑴extend the scope of high-quality seed subsidy;⑵improve the mechanism of high-quality seed popularity and normalize the government behavior;⑶implement the technology popularity and improve the agri-technology extension system;⑷enhance the propagation of high-quality seed subsidy and let farmers be the efficient supervisors;⑸construct feedback regime and enhance the effects of policy;⑹evaluate high-quality seed policy of the local government by the ratio of high-quality seed subsidy.