Mechanism Optimization Of Agriculture Finance Support Fund Allocation In Shandong Province

As the foundation of the national economy, agriculture plays a more and more important role in China’s economic and social development. The characteristics of agriculture as the foundation and the innate weakness in the market economy decided that the government must give financial support to agriculture. Shandong Province, a major agricultural province is more like this. As the natural conditions are not the same, the level of economic development is not synchronized, among17cities in Shandong Province, there are considerable gaps between the various cities about agricultural development. The financial revenue of Shandong Province is limited, so the financial funds allocation mechanism will directly affect the utility of agricultural subsidies. Therefore, the purpose of this study is to analyze the geographical distribution and sectional distribution of Shandong financial support for agriculture, find the problem exit in it, and make appropriate policy recommendations in the end.First of all, the article sorts out domestic and international literature about the financial support for agriculture. On this basis defines the concept of financial support for agriculture, the usage efficiency of funds, and the funds allocation mechanism, describes the theoretical basis of financial funds allocation mechanism optimization. Then we begin to do a qualitative analysis of the financial support of Shandong Province. Specifically, on the basis of comprehensive analysis of agricultural and economic development in Shandong Province,17cities in Shandong are divided into three levels of development stages. We analyzed the scale, direction of agriculture finance support fund, measured the proportion in the total fiscal expenditure, and elaborated distribution differences among cities and projects. An empirical analysis of financial funds allocation efficiency of Shandong Province followed. We built C-D production function model to empirically study the promotion of agricultural production of financial funds in Shandong Province; built geographical distribution panel data model and C-D production function model to empirically study the financial funds use efficiency differences among17cities in Shandong Province; built regression model to explore the differences of agriculture financial support efficiency among projects.The empirical study mainly draws the following conclusions:(1) In the past10years, financial support funds have increased by10times, but the proportion is still at about10%.(2) Compared to fixed-asset investment in agriculture and agricultural employment population, financial funds play a more important role in promoting agricultural development.(3) Among17cities in Shandong Province, Weihai, Jining, Laiwu, Zaozhuang, Jinan five cities’financial funds to agriculture is the most efficient; Yantai, Dongying, Taian, Weifang, Zibo, Qingdao, Rizhao seven cities the next; Binzhou, Liaocheng, Linyi, Heze, Dezhou five cities the lowest.(4) Fiscal expenditure on agricultural plays the most significant role of the agricultural production, followed by the Irrigation and Meteorology Project, Forestry project had no significant effect.Based on theoretical analysis and empirical analysis, it is found that the mechanism of allocation of financial support to agriculture in Shandong Province have problems like low total funds, uneven distribution among regions, unsound management mechanism. The following measures should be taken to optimize the distribution mechanism of financial support for agriculture in Shandong Province: Make clear the target of financial support to agriculture; Building performance evaluation system of fiscal expenditure on agriculture; adjust the allocation of financial funds; Complete financial funds allocation regulation mechanism.