Analysis Of The Effect Of Food Subsidy Policy In Henan Province

Agriculture is the foundation of national economy, Henan Province is one of the most important grain producing areas. Studying the grain subsidy policy of Henan province has important practical significance on the protection of national food security. Henan Province has executed the food subsidy policy since 2004, which has effected deeply on enhancing the production enthusiasm of farmers, promoting food production and farmers'income growth. However, there are some problems such as funding difficulity, false report of data and so on, which hashazarded the interests of country and grain producing peasants. This article firstly defines the related concepts of the food subsidy policy, on the basis of which, it introduces the theoretical and practical basises of implementation of food subsidy policy; and then gives the overview of evolution of food subsidy policy, its objectives, targets and status of implementation; and then explains the effect and problems of current food subsidy policy implementation in Henan Province; and makes empirical analysis on food subsidy policy from the two aspects of the grain production and farmers'income. Through analysis of the agricultural data of 2004-2008 in 18 cities of Henan province, selecting area grain sown, electric consumption in rural areas, agricultural fertilizer use amount and grain subsidies amount as explanatory variables of food production, with the establishment of CD production function model, we finally find that direct subsidies for grain production is not the most important factor in effecting food production. Choosing agriculture investment amount of financial support, the amount of grain direct subsidies, the proportion of non-agricultural population among the rural labor force, the number of people with more than nine years of compulsory education, per capita arable land area as explanatory variables for income of farmers, with establishment of a linear model, we also find that family operating income is not the main part of the income of farmers, while the amount of grain direct subsidies also has less impact on the income of farmers. Finally, this paper provides countermeasures for improving the grain subsidy policy, primarily, to strengthen supervision and management of the implementation process; to use information tools to monitor the implementation of policies in addition to increase the financial input can ultimately realize the coordinated development between food production and rural incomes.