Impacts Of Grazing Restrictions And Ecological Compensation On Household’s Income In Wongniute County, Inner Mongolia

The implementation of the grassland ecological subsidy incentives is a significant strategy to protect grasslands and therefore to increase farmers’income. The main contents of the project are the grazing restrictions and the ecological compensation. This paper takes farmers in Wongniute county, Inner Mongolia as examples.260 farmers are surveyed in 2013 and 2014. The aim of the paper is to analyze the impact factors of grazing restrictions on farmers’income. Several policy suggestions are recommended based on the analysis. The primary results are as follows:1.75% of farmers supported the policy whereas only 12% of farmers income being increased. 25% of farmers hold negative attitude on the policy. The main reason can be attributed to the decrease of family income, lack of techniques and used to graze.2. The grassland ecological subsidy incentives promoted the development of livestock husbandry. The survey data show that the nutrient condition of sheep has improved and the reproduction rate has apparently increased. In addition, the continuously rising of mutton price was also the reason to promote the development of production. Animal husbandry cost in the region of grazing restrictions throughout the year and fodder-livestock balance increased 215% and 163%, separately. The forage accounts for the large percentage of the production cost. Besides, the deaths rates of animal increased 40% caused by the grazing restrictions.3. Farmers in sample area are mainly engaged in animal husbandry and crop production. Planting structure mainly includes crops, almost without forage grass. Planting could not couple well with the animal husbandry. The survey results also demonstrate that the grazing restrictions policy has insignificant impact on planting. However, the cost of crop production increased 20.7% and 22.4% respectively in the region of grazing restrictions compared with the condition without ecological compensation policy.4. Farmers went out for jobs increased 185.7% and 237.5% in the two regions. This situation helps farmers have more income channels. The proportion of off-farm income in the total income has increased 23.1% and 15.3% in the two regionscompared to prior to the implementation of the policy.5. Grassland ecological compensation has little effect on households’ income. Only 27% farmers believed that the policy had great help on their income,49% thought subsidies had a little help, and 24% said subsidies were dispensable.6. The result of Cobb-Douglas production function of animal husbandry showed that animal husbandry were in the increasing return to scale. Biological capital was the most important factor affects animal husbandry income. Cost of pens had insignificant effect on animal husbandry income. Compared with the situation before the implementation of the policy, the effect of forage cost and epidemic prevention cost on animal husbandry income had increased. Whereas labor has insignificant impact on animal husbandry income.The result of Cobb-Douglas production function showed that crop production was in the increasing return to scale. Land was the most important factor on crop production income. Compared with the situation before the implementation of the policy, the effect of labor and machinery cost on crop production income had decreased. However, the effect of seed cost on crop production income had increased. The effect of fertilizer varied from land conditions, it had little impact on crop production income in the region of grazing restrictions throughout the year, but had significant impact on crop production income in the region of fodder-livestock balance. Pesticide had little impact on crop production income.7. Policy suggestions for the government:1) keep increasing the subsidy; 2) implementing the grassland agricultural, adjusting planting construction, and developing grass production; 3) enhancing the technical training for farmers.