Our Current Food Subsidy Policy Yield

Grain is always an important good in people's livelihood, and food security is even a major strategic issues related to national economic development, social stability and national independence. To support the development of food production and to relieve the fluctuations of grain price, many countries in the world, especially the developed countries have adopted Grain subsidies policy. China is no exception. To mobilize farmers'passion for growing grain, China took a reform on grain subsidies policy in 2004, which has achieved the transformation from indirect subsidies to direct subsidies. Reformed grain subsidis policy mobilized farmers'enthusiasm of growing grain greatly, not only reversing the decline in grain production for six consecutive years, but also getting a six consecutive years'growth in grain production for the first time.The current grain subsidies policy has caused widespread concern in academia since its implementation. However, the literature, based on different grain crops to research the yield effect of current grain subsidies policy by quantitative methods, is rare. Therefore, taking this as a pointcut, this paper researched the relationship between current grain subsidies policy and sown area, per unit yield of wheat, corn, rice separately, still it attempted to do the following try and explore: Firstly, basic on the former'researches, this paper has used economic theory to comb the path of how the current grain subsidies policy to promote grain yield. Secondly, this paper has utilized the subsidies data of more than 20 provinces (municipalities and autonomous regions) to build panel data model of wheat, corn and rice, then tested the effectiveness of the quantitative yield path and the technological progress yield path; Finally, this paper has made several suggestions to enhance the yield efficiency of current grain subsidies policy and boost grain production.The results show that the current grain subsidies policy has effectively boosted the production of the three grain crops, but the path to increase the output of grain are different: quantitative yield path and technological yield path are both valid to wheat production, but to corn production only quantitative yield path is valid and to rice production only technological yield path is effective. In addition, limited by the shortage of arable land resources, the room of quantitative yield path to increase grain production is limited; restricted by the transfer of agricultural population and land transfer system, the yield potential of large-scale still need a period of time to release; the boost of grain production will be increasingly depending on technological progress yield path.