Continue To Implement And Improve The Grain Direct Subsidy Policy Issues

China began to implement the policy of food subsidies in the planned economy period, after the fifties of the last century. Then China experienced a "unified purchase and marketing" phase, the "protection price" phase which subsidizes the circulation links and the "direct subsidy" focuses on farmers. Because of the economic environment and different problems to be addressed, the food subsidy policy is different for each period. When the subsidy policy cannot effectively protect the food production and enhance national food productivity, it will be replaced by other policies. Chinese current food subsidy policy is change the original link in the circulation by way of price subsidies for farmers (food indirect subsidies) to a certain mode and standard of direct subsidies to grain farmers (food direct subsidies). Compared to indirect subsidies, direct subsidies policy has less working links, much more the interests to the farmers with more direct way, and better efficiency. After several years implementation, the direct subsidies policy is indeed better protected the interests of farmers, promoting the stability of the farmers'income, mobilized the enthusiasm of the farmers to grow grain. And it becomes effective measures of the implementation of the Party's "three rural" policy to ensure national food security, promoting market-oriented reform of grain circulation system.At the mean time of the initial success gained by the direct subsidies policy, we should realize that there are still many deep-seated problems and contradictions need to be solved in the production and circulation of food circulation. How to ensure that the subsidy policy can be long-lasting support to Chinese grain industry is still a subject that needs our continuing quest to make it perfect.This paper is intend to give discussion and analysis on the different periods of Chinese food subsidy policy, while comparing Europe and the United States food subsidy policies in developed countries. This paper is focused on the current Chinese grain direct subsidy policy and its implementation, analyze its effects and drawbacks, to find the inadequacy of the direct subsidies food policy. At the end, come up with humble opinions to make further improvements.