Research On Relationship Between Price Fluctuation Of Agricultural Production Materials And Increasing Of Farmers' Net Income In Agricultural Production

The farmers' income is a key related to the agriculture rapid development, rural areas modernization and farmers' living standard raising. Agricultural production materials price adjustment directly influence the agricultural products costs, indirectly influence the interests of farmer. In recent years the government implement the reform on taxes and fees in rural areas, foodstuff directly subsidy, seed subsidy, the purchase of agricultural machine subsidy, agricultural production materials subsidy, promoted farmers increase input and income from agriculture. However, agricultural production materials price continued increasing is eroded the tax reform policy and the benefit bring by rising agricultural products price. From 2001 to 2005 net income of farmers' average annual increase rate was 5.26%, under the GDP average annual growth rate 8.6% at the same time. The situation of farmers' income increased slowly serious inhibits their enthusiasm in production, hampers the rural economic and social development. Under such circumstances, find the agricultural materials price increasing influence on the net income from agricultural production is very necessary.This paper purposes as follows: Research reasons of agricultural production materials price increasing, Analysis of the relationship and impact between them. From the practical level, find the control prices riseing of agricultural production materials, increase their agricultural production income strategies.In this paper adopted a mainly quantitative research methods, combination of qualitative and quantitative research methods, through the assumption that price fluctuation of agricultural production materials is one of the main factors impacted farmers agricultural production net income, use multiple regression model analysis them.This study content and conclude in the following areas: (1) Recall the previous study done by the relevant theories, such as the theory of agricultural income and economic fluctuations. (2) Analysis the prices change of agricultural production materials and influencing factors. The overall price of agricultural production materials raise too much, such as chemical fertilizer, farm diesel fuel, farm plastic film which is ore and oil-based products raise most. The main factors of impact of agricultural production materials prices are the prices of raw materials rapid increases, agricultural production materials currency development lags rise the cost of circulation, the retail terminal small and dispersed, lack of scale advantage, its products reserves delay worsen supply-demand contradiction. (3) Reseach price fluctuation of agricultural production materials impact famers' net income from agricultural production from 1991 to 2006. Concluded that the agricultural production materials costs is one of the main factors impact agricultural production net income. The biggest strength impact agricultural production net income is the price of agricultural products, and their positive correlation, the farmers' agricultural production net income fluctuate the same direction with price of agricultural products. (4)The conclusion suggests how to restrain prices rise of agricultural production materials and promot famers' net income from agricultural production. Such as: Government should improve the prices of agricultural products from the control mechanism, provide a good environment for agricultural production materials market circulation, increase agricultural production materials subsidy, and improve agricultural service, advocate scientific usage of agricultural production materials lower production costs.