Empirical Study On The Influence Of Grain Direct Subsidy For Grain Production In Jiangsu Province

Grain is a kind of special commodity and important strategic materials related to the national economy and people’s livelihood. In recent years, due to the increasingly sharp contradiction between supply and demand, the problems of world’s grain security are more prominent. The Chinese government always attaches great importance to the problems of food security. The grain direct subsidy policies has been carried out on a national scale to mobilize farmers’enthusiasm to grow grains since 2004. Under the support and the stimulus of national policies, China’s grain output has been continuously increased for nine consecutive years. As one of China’s major grain producing areas, Jiangsu province always put its financial policies for supporting agriculture into practice. As early as in 2003, Jiangsu firstly carried out the grain direct subsidy policies in its five biggest output countries. With the gradual improvement in recent years, the system of grain direct subsidy policies in Jiangsu province has been gradually formed and its effect of promoting the output and the farmers’ income has becomes more and more obvious. So studying on the current situation of Jiangsu’s grain direct subsidy policies and its influence on grain output has important practical significance to improve Jiangsu’s grain direct subsidy policies, to ensure the output of grain self-sufficiency and to maintain its regional grain securityThis paper analyzes the evolution course and implementation of the status quo of Jiangsu’s grain direct subsidy policy based on the grain direct subsidy theoretical basis, the economic analysis on the output of grain direct subsidy effect, the output effect path of grain direct subsidy as well as other related theories. Then the extended C-D function is used to build Jiangsu’s grain production function in which the variables of direct subsidy policies of grain and the cross terms of this variables and the others, using panel data of 13 cities in Jiangsu province from 2004 to 2012 for the direct subsidy policies of grain for the overall impact of grain production in Jiangsu province and have the empirical test of the impact of grain output in the southern of Jiangsu province, middle and north of Jiangsu province. The results show that the direct subsidy policies of grain is markedly important for Jiangsu’s grain output in a general way, and what’s more, it can affect farmers’behavior-of engaging in grain production so as to affect grain output. But the effect of different areas of the direct subsidy policies of grain shows different characteristics, it depends on the differences of factor endowments and the imbalance of economic development in the three regional. Finally, this paper puts forward some policies such as improving the standard of grain direct subsidy policies, establishing the three linkage mechanism among the grain direct subsidy policies, the grain’s market prices and the prices of agricultural materials, encouraging different grain direct subsidy policies according to different areas and varieties, encouraging the circulation of rural land and speeding up the transfer of rural surplus labor.