A Study On The Impacts Of Price Of Farm Products On Rural Households' Inputs In Cultivated Land

Rural household is the micro subject of agricultural inputs. Reasonable inputs of rural households in cultivated land are important to ensure farmers' income growth, agricultural sustainable development, construction of new socialist countryside, national food security and construction of a harmonious socialist society. There are many factors which influence rural households' inputs in cultivated land. While this paper focuses on the impacts of the price of farm products on rural households' inputs in cultivated land.In this paper, based on our questionnaire investigation on five counties and cities of Jianghan Plain and the North Hillock Area in Hubei Province, we investigated some related issues of rural households' inputs in cultivated land. On this basis, we analysed the current characteristics and the will of households' inputs in cultivated land. Combining statistical analysis software, using linear regression model, we made a quantitative analysis of the impact of the price of farm products on determining the direction and extent of the impacts, regional differences, and hence uncover the reason for the impacts and differences. Our analysis shows that impacts of the prices of different farm products on rural households' inputs are different, and impacts of the price of the same farm products on the households' inputs of different regions are also different. The specific results of the analysis are as follows:1. The characteristics of rural households' inputs in cultivated land. Firstly, the farm labors working all year round are mainly the elderly and women. Farmers' working in industry is a common phenomenon. Secondly, the seasonal labor market in rural areas has begun to appear. Thirdly, agricultural mechanization in rural areas has been greatly improved. Fourthly, leasing market of agricultural machinery began to emerge. Fifthly, chemical fertilizer and pesticide are the major agricultural capital inputs.2. There is a high correlation between the adjustment of agricultural structure and the changes of the market price of farm products. 53.15% of the households adjust agricultural structure in accordance with the changes of the price of farm products. It shows that "which farm products' price was higher, and then which were produced more." And current agricultural structure is mainly affected by the impacts of the price of farm products of the previous year. As a result of volatile prices of non-irrigated crops, the will of rural households to adjust agricultural structure in North Hillock Area in Hubei Province are stronger than that in Jianghan Plain. 3. The impacts of the price of farm products on rural households' inputs in cultivated land in the entire study area. Firstly, there are some impacts of the price of farm products on rural households' inputs in cultivated land. Food price has a positive impact on total inputs, the impact of wheat price is significant, while the impact of grain price is insignificant. But the impact of cotton price on total inputs in farmland is significant negative. Secondly, the impact of the price of farm products on rural households' floating inputs is insignificant. The impacts of grain price and wheat price are both positive. And the impact of cotton price is negative. This shows that based on rural households' former experience, their current investment has almost achieved the optimal level, hence no need for further increasing. The impact of grain price is strongest. The impact of wheat price is weakest. And the impact of cotton price is in the middle.4. The impacts of the price of farm products on rural households' inputs in cultivated land in the two surveyed regions. First of all, the impacts of the price of farm products on rural households' total inputs in cultivated land in the two surveyed regions are different, mainly reflected in the impacts of grain price. In Jianghan Plain, commodity rate of rice is high, the impact of the grain price is positive. In North Hillock Area, commodity rate of rice is relatively low, so the impact of grain price is negative. The impacts of wheat price are both positive to the rural household in the two surveyed regions. But the impact of wheat price is more significant in North Hillock Area than that in Jianghan Plain. The impact of cotton price is both negative to the rural household in the two surveyed regions. And it is more significant to the households in Jianghan Plain than that in North Hillock Area. Secondly, the impacts of the price of farm products on rural households' inputs are not significant in the two surveyed regions. But the impacts of the grain price on rural households' total inputs in cultivated land of the two surveyed regions are different. It is positive in Jianghan Plain. And it is negative in North Hillock Area. This is mainly relevant to the rice commodity rate. In the same region, impacts of the prices of different farm products on rural households' inputs are different. Impacts of the price of the same farm product on the households' input of different regions are also different.