Study Of Agricultural Direct Income Subsidy Reform

The Direct Subsidy to the Farmers (DSF) refers to transfer directly the financial income of the government to the individual farmer in order to maintain and increase the farmers1 income or reduce the damage to the farmers' income because of the adjustment of the policy. In China, the DSF is under way in the following forms: the subsidy for the use of the good seed strains, the subsidy for the farming machinery and the subsidy for the crops. In the whole country, there are 13 major crops production provinces or autonomous regions to carry out these three kinds of the subsidies. According to the amount of the money, the subsidy for the crops is the most important in them.In 2001, the State Council issued and put forward the advice to grant directly subsidy for the grains to the famers in several pilot regions. From 2002, Tianchang city and Lai'an county in Anhui province and Dongfeng county in Jilin province set about this kind of the pilot subsidy.In 2003, the subsidy for the crops went ahead in the whole province of Anhui, Jiangxi, Jilin, Henan, Hebei and so on. In 2004, this policy had covered the most provinces , autonomous regions and municipalitied of China. The year of 2005 is the second year to carry out this subsidy for the crops.This paper have had some deep research on this policy of granting subsidy for the crops. The contents of this paper mainly include as follows : define a serious of key concept related with the derect subsidy in order to make a good foundation to the latter research ; analyse the home and abroad background of carrying out this policy; analyse the detailed form and their discriminations of the direct subsidy for the crops in present China; study the subsidy policy of the main developed countries so as to guide ours; describe the detailed practical situation and the existent problems; put forword some useful countermeasures at the end of this paper.Based on the theoretical and practical researches, the paper makes some conclusion as follows:1. Our policy of the subsidy for the crops is under some home and abroad backgrounds. From the abroad perspective , this policy meets the demand of the WTO and follow the trend of the developed countries. From the home perspective, the first reason is that our country has the competence to make the industry support the agriculture ; The second reason is the slowly increasing speed of the farmers' income. The third reason is the hard situation of the present crops circulating system. The last one is the falloff of the crops production.2. By analyzing the policy of the main developed countries and combining with our country's...