Government Grain Direct Subsidy And The Western Food Production

The three－dimensional rural problems of Farmers, Rural Areas, AgricultureProduction are the main issues of China. Agriculture is the foundation of the wholecountry. China has the most largest population in the world, but the per capita arableland area is relatively small. So how to ensure grain output and solve the problem offood security in China are the most important problems for the government. Since thefood crisis in2008, the World Food Day theme in2009is about food security." Inrecent years, the harsh natural environment and extreme weather events such as floodand drought happened a lot, food production suffered a great trauma. China began toimplement the grain subsidies policy since2004nationwide, to protect the farmers’interests and increase income and food output. In2012, the implementation of thegrain direct subsidy policy has gone through eight years, many scholars from allcircles as well as government’s policy makers are constantly research the impact ofthe policies of grain production and farmers’ decision-making about grain productionunder the policy.Large number of studies from domestic and overseas about grain direct subsidypolicy which impact on farmers’ behavior of grain production give variousexplanations and suggestions from different points of view. The findings haveenriched our knowledge about the subsidy policy influence and provide a lot of usefulliterature for our government’s policy makers, which greatly promoted thedevelopment of China’s grain subsidy policy reform. This paper based on the study ofthe scholars before, as Honghe Prefecture, Yunnan Province, for example, to explorethe effect of China’s grain direct subsidies policy for grain production in the westernregion. And this paper using the past three years of2008to2010household surveydata in Yunnan, different from the cross-sectional data, this will be a differentperspective and methods to study the influence of subsidy policy for grain productionin western. The multilevel models is more suitable for longitudinal data. By increasethe geographical features variables and recode time baseline, investigation the influence of the policy direct subsidies to grain producers in the western region. Thispaper will take the new point of view and method of research policy for grainproduction. At the same time, the paper use the grain income ratio to measure theenthusiasm of farmers engaged in grain production, in order to investigate theinfluence of the policy of direct subsidies to grain production,to provide reference tothe gocernment’s policy makers.This paper considers the traditional model is not suitable for the study oflongitudinal data, consider the use of multilevel model not only make up for thedeficiency of the traditional model, but also can solve the heterogeneityproblem.Mainly use for the SAS software, through the establishment of multilevellogistic regression model, to get a more accurate analysis results.Concludes: The implementation of grain direct subsidy policy not only havepositive influence to grain production for farmers, but also the positive impact isrelatively good. The higher level of education which allows farmers to contact themanufacturing, mining and services, higher education experience led farmers tomaster the skills outside of agriculture, so the farmers with high level of education canwork in the second and third industry. Machine-cultivated development makes grainproduction fast and effective, promoting the farmers’ enthusiasm of grain production.The emergence of professional cooperative economic organization for farmersprovide the contact and participate in the second and third industry employmentopportunities, at the same time, convenient traffic is also affect the farmersenthusiasm of agricultural production.In summary, there are two main innovation points:(1)Use multilevel logisticmodel which is more suitable for longitudinal data, recode time baseline.(2)Comparison and analysis class as classification variables.