The Influence Of Grain Subsidies To China's Paddy Production Efficiency

Along with the economic development and the problem of food security,China's agricultural policies began to transformation.Since 2002,the Chinese government has introduced improved varieties subsidies;grain directly subsidies,agricultural material subsidies,and a series of food production subsidies.These policies have made a variety of positive results,stabilizing grain production,increasing the income of farmers,safeguarding national food security.But the negative effects have occurred.For instance,increasing quantity of import grain and the grain in stock,wasting of resources,environmental disruption,subsidies ineffective,and disruption of market mechanism,and so on.In view of this,Chinese government has begun to reform the agricultural positive policies,in order to rebuilding a market leading,accurate and efficient,and cost-saving new agricultural support policy framework.Under the background of large-scale change in agricultural support policies,exploring food subsidies influence on China's grain production efficiency has important practical guiding significance.In this paper,the rice is served as research object.The author use the DEA-F?re Primont index to measure and decompose the total factor productivity(TFP)of China's early Indica rice,medium Indica rice,late Indica rice and Japonica rice in 2002-2013,and further using panel data Tobit model to explore the specific impact of grain subsidies and other factors to rice.The decomposition about production efficiency found that:(1)The TFP levels of four kinds of rice have different degrees of growth,the main growth power are the maximum feasible technology(TFP*).(2)The TFP levels differentiation arise between varieties and regions.The TFP levels of early Indica rice and Japonica rice have a significant growth;the medium Indica rice and late Indica rice have a slow growth.The TFP levels and growing rates of superior regions are generally higher than inferior regions.Except Japonica rice,the TFP regional gaps of other rice varieties have not seen shrinking trend.(3)The comprehensive efficiency(TFPE)of rice has different degrees of decline,the main factor of these trend are the declines of input-oriented technical efficiency(ITE)and input-oriented mix efficiency(IME).The research about production efficiency found that:(1)Grain subsidies effectively promote the TFP of three kinds of indica rice,but the acceleration to Japonica is not very obvious.(2)The expansion of farming,rural human capital accumulation effectively promote TFP growth of some rice varieties,or the development of the economic environment and the natural disasters have obvious negative effects to the TFP growth.(3)The increase of rice price and land irrigation ratio did not promote the TFP effectively.This paper research conclusion supports such a view: From 2002 to 2013,China's rice TFP have gotten the technology-driven growth,the implementation of the subsidy policy,the expansion of production scale,the accumulation of rural human capital effectively contributed to this great change.But should not ignore the comprehensive efficiency of rice in a certain degree of decline,the rise in the price of rice sales may not have the effect of promote total factor productivity.Because of the “three rural problems” in the important position of China's national conditions,China's agricultural support policies reform should adhere to the target price subsidy direction,the subsidies should also be insisted on the existing scale,then achieve to targeted subsidies and accurate operation gradually,in order to achieving the long-term objectives: the more efficiency of grain production,the green development of agricultural production,and national food lasting security.