Effect Evaluation And Optimization Of Grain Direct Subsidies Policy In Different Grain Productive And Sale Regions In China

Food security has always been a global major strategic issue which effects nationaleconomy development of our country, social stability and national independence. Since2004,our country achieves8-year increase in grain yield. Although it can be guaranteed in the shortterm, food security of our country is a worrying matter in the long term. From2004, graindirect subsidy policy in China begins to be implemented fully, and these years it constantlyimproves. But there is also insufficient and are some problems in the process. So what are thepractical effects of this policy? Could it realize the aim of protecting food security? How tooptimize grain subsidies? Thus, it is necessary and essential to evaluate practical effects ofgrain direct subsidies in different productive and sale regions of grain, then do contrastiveanalysis and propose suggestions of policy optimization.Based on the above background, this paper takes main grain productive region—Lezhicounty, Sichuan province, production-and-sales balancing region—Wugong county, Shaanxiprovince and major sale area—Lin’an city, Zhejiang province for examples to get survey data.On the one hand, for evaluating practical effects of grain direct subsidies in differentproductive and sale regions of grain and doing contrastive analysis, farmers’ satisfaction isused to analyze the initial effects of grain direct subsidies on grain yield and C-D function isadopted to appraise the final effects of grain direct subsidies on grain yield. On the other hand,using foreign experience of grain direct subsidies for reference, and considering farmers’expectation, suggestions of policy optimization are put forward.From these analyses, we can draw the following conclusions:(1) The overall practicaleffects of the policy in the main sales region is not good;(2) The overall practical effects ofthe policy in the production-and-sales balancing region is relatively good;(3) The overallpractical effects of the policy in the main sales region is relatively good;(4) Comparativelyspeaking, in different productive and sale regions, the overall practical effects of the policyare also different. As seen in the farmers’ satisfaction survey and multiple regression analysis,the production-and-sales balancing region gains the best, then the main sale region, andfinally the main productive region. Finally, using foreign experience of grain direct subsidies for reference and combined with expectation of farmers, measures of policy optimization areput forward as follows:(1) Integral suggestions are harmonizing the interest relationship ofdifferent production and marketing areas of grain, justifying and scientizing the subsidystandard, keeping the price support policy and the payment method of grain direct subsidy atpresent.(2) Major grain producing area had better increase subsidy standard by50-100yuanper area and choose different subsidy basis under different conditions.(3) Theproduction-and-sales balancing region needs to advance subsidy standard and diversifysubsidy basis.(4) The main sales region should advance subsidy standard and keep thesubsidy basis at present.