Research On The Impact Of Factors’ Price Fluctuation Upon Agricultural Modernization

In recent years, the process of agricultural modernization have made rapid development, but there are still some problems, such as a low degree of agricultural mechanization popularization, the technological backwardness of agricultural production, agricultural and industrial productivity gap. These problems hindered the increase of farmers’ income, expand the income gap between urban and rural areas,and restrict the improvement of the overall level of modernization.Changes in factor prices reflect the rareness of factor in a market economy. As per-capita income in China reached middle-income status, improved levels of economic development and changes in age structure resulting in higher labor costs, at the same time, land prices are showing a rising trend. By contrast, industrial overcapacity and global financial crisis lead to shrinking consumer spending, and in order to stimulate the economy, the Central Bank unveiled easy monetary policy aimed at promoting investment, resulting in lower capital price.. This paper analyzes the mechanism of the impact of factors’ price fluctuation upon agricultural modernization, and uses panel data model, time series model analysis and other econometric analysis to test empirically impact of factors’ price fluctuation upon agricultural modernization, and put forward policy recommendations.Firstly, on the basis of previous theories, this paper defines the connotation and index system of agricultural modernization. Secondly, it analyzes rareness, supply and price changes of factors, and describes the different price effect mechanism of each factor according to the different market environment. Then, building analysis framework of the impact of factors’ price fluctuation upon agricultural modernization from two aspects of agricultural technological progress and agricultural management,and analyzing the mechanism of the impact of factors’ price fluctuation upon agricultural modernization systematacially. In addition, on the basis of the mechanism of the impact of factors’ price fluctuation upon agricultural modernization, by organizing related data, using panel data model and time series model to make an empirical analysis from two aspects of agricultural technological progress and agricultural management. Finally, according to the empirical results, drawing the conclusion that, relative price and per capita annual net income of farmers has a positive effect on share of machinery and labor in agriculture, it is said that, higherlabor relative price and farmers’ affluence induce agricultural technology which saving rare elements, and it contributes to the advancement of agricultural mechanization; rise of labor price can accelerate non-farm rural labor transfer and circulation of rural land, and expand per capita arable land, thus contributing to the realization of large-scale agricultural production.