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The Effects And Optimization Of China’s Grain Subsidies Policy

Posted on:2014-11-30Degree:MasterType:Thesis
Country:ChinaCandidate:L SongFull Text:PDF
GTID:2309330467968810Subject:Rural and regional development
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As we all know, food production is related to a country’s food security as wellas the national economic security and the independence of sovereignty. China is adeveloping country with a population of1.3billion. So, how to solve the problemof feeding the people are always the kernel problems for our government. It is alsoa major strategic issue to safeguard people’s livelihood and to achieve politicalpower.Based on the background of "Three Rural Issues", the research in this paper isfor achieving food security and improving the income of the famers. Indeed, thecore of the "Three Rural Issues" is “The Famers”. So continuously improving theincome of the farmers is a fundamental solution to the “Three Rural Issues". Thus,effectively increasing rural income and stabilizing food production have becomethe primary task of the national food security at this stage.For this reason, in order to encourage and support for food production and toensure food safety, the central government has seven consecutive times mentionedto continue to increase the intensity of food subsidies, to increase the scale ofsubsidies, to raise the minimum purchase price, and increase the income of farmersin the first document since2004, However, how about the situation of the specificimplementation, what problems still exist and what needs to be optimized are theproblems to be studied in this paper.Using the literature research method, we will do a full analysis of the researchstatus at home and abroad. Based on this, we can do a theoretical analysis onChina’s current grain subsidy policy by using the method of normative analysis,which is separately from the point of view of the yield effect and income effect.After the yield effect analysis, we can see that whether the food production subsidybased on seed subsidy and farm machinery purchase subsidy or the incomesubsidies based on direct grain subsidy and direct agricultural comprehensive subsidy; both can play a catalytic role in the increase of food production. Amongthem, the effect of production subsidies policy is more significant. While, after theincome effect analysis, it is clear that both the price support policy and directincome subsidy can promote the increase of farmers’ income. In comparison, directincome subsidy is more efficiency to promote the increase of farmers’ income.Because it can increase farmers’ income, has no change in the total social welfareand less impact on the community.Then, through the review and elaboration of the development and status quo ofChina’s grain subsidies policy, the structure of current grain subsidy policy will beanalyzed. Next, the effects of China’s current grain subsidy policy can be evaluatedfrom its influence on food production, famer’s income, grain planting structure andagricultural structure. Furthermore, it is pointed out that the problems of theexisting food subsidy policy, such as the structure of subsidy policy is irrational,policy implementation is not in place, regulatory system is relevant lack, grainsubsidy funds is narrow and the high cost and low efficiency of grain subsidy.Then using the comparative method, compare all aspects of domestic andforeign food subsidy policy (mainly in the United States as a reference object) toidentify the ideas of optimizing our current food subsidy policy and combinedwith China’s national conditions suggest the following optimization tips: perfectsubsidy structure, improve the supervision mechanism, prompt subsidy policylegalization, subsidy efforts, expand sources of funds; optimization policy means,safeguard farmer grain yield increase; speed up the early warning mechanismconstruction and improve agricultural insurance.
Keywords/Search Tags:Agricultural subsidy policy, performance evaluation, optimizationsuggestions
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