Analysis Of The Implementation Policy Effect Of China’s Grain Subsidies

The grain is not only a necessity for human survival and development, but also importantmaterials for maintenance of the national political and economic security and social stability.Due to the inferiority of the grain industry, appropriate subsidy policies should be taken toprotect it. In recent years, the international grain crisis and the domestic farmers’ incomedifficulties become serious. Improving China’s grain subsidy policy is imminent. The key ofChina’s grain subsidy policy is changing from circulation areas to grain farmers. It has played apositive role in improving grain production and farmers’ income. But in the process of policyimplementation, the policies show some limitations limit the effectiveness. To study the effect ofthe implementation of China’s grain subsidies and the main factors to affect the effects, and giverelevant policy advice to enhance the international competitiveness of China’s grain industry areimportant problems to be solved.Multi-angle theoretical and empirical research on grain subsidies, discusses of the need forthe implementation of grain subsidies and economic theoretical basis, describes of the history ofChina’s grain subsidy policy changes, and detailed analysis of the status quo of China’s grainsubsidy policy are included in this paper. By using grey correlation degree analysis，we studythe affection of subsidy policy to grain security and farmers ’income. With the multipleregression model and least squares method, quantitative analysis is made to study the outputelasticity of food production elements to improve grain subsidy policy effect. By assessing thecurrent grain subsidies policy implementation effect, we found that grain subsidies make somedegree of influence on the rain output and peasants income. But the effect was not significant.Subsidies for production material and direct grain subsidies and played a big role. The empiricalresults of this paper have certain reference significance to the relevant policy recommendations.