Status And Optimization Of Chinese Agricultural Subsidy Policy

At present, China has risen to the world No.2economy and made the globally acknowledged achievements. However, the continuous and fast economic growth notwithstanding, the deep conflicts in agriculture has hindered the sustainability of China’s economy.To break the bottleneck, Chinese government has restructured the primary and secondary industry from a strategic level by entering into the phase of coordination and synergy with the guideline of "industry nurturing agriculture and urban areas supporting rural areas". To that end, the Central Government has released a series of agricultural subsidy polices. From2002, China has published a basket of subsidy policies such as the direct subsidy on grain production, subsidy on superior seeds, subsidy on agricultural machinery purchases, subsidy on minimum grain purchasing price, direct subsidy on farming materials, government insurance for agriculture, temporary procurement and storage, subsidy on the targeted prices, and insurance on the targeted prices. By doing so, a new agriculture subsidy system has been established, consisting of the income subsidy, special production subsidy, special marketing subsidy and disaster-relief subsidy and giving equal footing to the national food security and farmers’income.Through China has established a primary subsidy system for agriculture, there are many underlying problems considering the status quo of the policy development and implementation. Therefore, it is urgent yet challenging to analyze the deep-rooted problems in the policy development and implementation and find out the optimized countermeasures. The thesis is written on that basis, aiming to conduct a research on the status quo of the policy and make suggestions for further optimization.First, the thesis defines the concept and categories of agricultural subsidy and explores the necessity of providing agricultural subsidies by referring to its nature and targets.Second, a thorough analysis is made on the current subsidy policy system by referring to a case study on County L from the policy implementation status, effect and underlying problems.Finally, the targets and guidelines as well as an optimized measure for the subsidy policy in China are proposed based on the abovementioned problems and specific situation in China.