Research Of Cost Effect On Potato Cultivation Earnings In Heilongjiang Province

China is the world’s largest potato planting country, most of the provinces and regions are planting potato, but in recent years, the potato proportion is declining in total grain output. Our country plan to execute potato staple strategy, coordinated with rice, corn and wheat. Changing potato’s vegetables position into the fourth largest staple food. By increasing the potato planting area appropriately to increase potato production, to ensure national food security and promote the development of national economy is of great significance.Heilongjiang province as one of the largest potato producing area in China, potato planting industry has huge development potential and competitive advantage. In recent years, as the costs of agricultural material, labor costs and land are increasing rapidly, leading to the potato planting total costs rose sharply, profit margins declining, potato farmers’ planting enthusiasm is greatly reduced, potato planting area is falling. Therefore, analysis the influence degree of various cost components of earnings, put forward the concrete measures and reduce the potato planting cost, to help to promote potato farmers’ income is necessary.This paper take potato planting cost and benefit as the research object, on the basis of related concepts and basic theory, this paper introduces the present situation of potato production in Heilongjiang province, the cost and income situation, then analyze cost expenses.At last, using the principal component analysis to analyze the influence degree of various cost components on the potato yield, finally put forward countermeasures to control costs and improve the planting benefit.The research conclusion is as follows:(1)About potato production situation in Heilongjiang province. From the point of planting scale, the potato planting area is falling rapidly.From the level of yield and total output, due to yield level increased significantly, total output fluctuated in an upward trend.(2)About potato cost and income status in Heilongjiang province.Total potato planting cost has been rising, the cost of production and land cost increase together, but the speed of land cost growth is greater than the rate production cost. In recent years, potato planting income has fluctuated in a downward trend, specifically: one is the potato output per unit area has decreased; The second is a decline in net profit; The third is cost profit margins decreased and fluctuated dramatically.(3)Through the analysis of cost expenses analysis of potato planting in Heilongjiang Province, the conclusion is: material and services cost increase is mainly due to the increase in direct costs; Employee costs is rising faster than in the domestic labor costs; Land costs are rapidly rising, among them, the circulation land cost increased rapidly.(4)Through the principal component analysis model, concluded that seed, chemical fertilizers, lease operating costs and labor costs constitute the first factor of potato planting benefit, having the largest effect on output and income. Pesticides and land cost constituting the second factor of potato earnings.(5)At last, put forward countermeasures to control production cost and improve potato planting earnings. One is to control agricultural material cost; The second is to improve the labor productivity; the third is to optimize the land circulation mechanism; the fourth is to improve the information and organizational degree.