Evaluations Of The Implementation Of Agricultural Machinery Subsidies

Agricultural subsidies is now a basic policy that all country implements to support agriculture. It is stated in Document No.2009and Document No.2010that agricultural machinery should be strongly advocated and supported. Agricultural machinery subsidies is a new chapter of agricultural subsidies, however, not much research has been conducted in this field.The paper mainly discusses about the function and mechanism of agricultural machinery subsidies. The paper first tries to integrate the concept of sustainable agriculture into agricultural machinery subsidies, and then comes to a conclusion that the subsidies qualitatively creates a balance between personal benefits of farmers and the ultimate agricultural goal of the whole nation.First, agricultural machinery subsidies alters the price of agricultural input. Also, variations of government policy lead to variations of farmer behaviors. In order to verify the positive effect that agricultural machinery subsidies brings to farmers, the paper will try to set up a technical model based on the supply-demand relation.Next, the paper will take a close look at the example of straw returning. By analyzing the collected data, the paper will investigate different factors and establish the subsidizing standard that could positively affect the subsidizing policy. Moreover, the paper will look at female as a separate group and points out that special emphasis should be placed on female when promoting agricultural machinery subsidies policy.Lastly, the paper will analyze the existing problem and the consequent benefit of agricultural machinery subsidies based on Iceberg Theory. It discusses about the restricting factors of current policies and the effectiveness, both dominant and recessive.