Analysis On Influencing Factors Of Tobacco Production Cost Change

Tobacco industry is an important source of financial and tax income in China,in 2007,the tobacco industry achieved 11145.1 hundred million in tax revenue,in the same period have increased 3.24 percent.Recent years,the cost of tobacco product is growing continuously,and the country is decreasing tobacco planting areas.In order to steady the willing of tobacco farmers,the country improve the intensity of subsidies in the tobacco industry,for example,increasing the tobacco purchase price year by year,and provides the specialized baking facility.With the support of national policies,the willingness of tobacco farmers to plant is still declining,and the rapid increase of production costs has a negative impact on the situation of tobacco supply.First of all,production cost is the primary consideration of tobacco farmers' production.Secondly,the continuous increase in production costs makes the supply power of farmers insufficient.Finally,as the largest flue-cured tobacco production area in China,Henan Province has representative tobacco production.Therefore,in view of the current situation of tobacco production decline,taking Henan Province as an example,this paper analyzes the cost changes that lead to the decrease of tobacco farmers' willingness to plant from the point of view of supply.The main influencing factors of the change of tobacco production cost are analyzed in theory and technology,and some concrete suggestions are put forward to control the change of cost,so as to promote the normal development of tobacco production.According to the current cost accounting method of agricultural products in China,this paper systematically analyzes the change of tobacco production cost in Henan Province in the past ten years by using the data of National Agricultural Product Cost-benefit data from 2005 to 2015.First,review the total cost changes and trends.Secondly,the influence degree and trend of each cost on total cost change are evaluated.The results show that the cost of hiring,material and service cost and the discount price of household employment have significant influence on the change of total cost,among which,the cost of employment,the cost of material and service,and the discount of household employment have a significant impact on the total cost.The change of household labor discount is the main influencing factor of total cost change,the influence of material and service cost is the second,and the influence of employee cost is relatively small,which indicates that labor cost and production cost are the key to tobacco production cost control.As a whole,the fluctuation between total cost and cost is decreasing and tends to be stable,which indicates that the cost control of tobacco production is less difficult at present.The implementation of targeted measures can maximize the improvement of production conditions and obtain high policy benefits.Based on the production behavior of farmers,this paper theoretically analyzes the relationship between factor input and cost change.First of all,in the aspect of factor supply,government subsidy can partly offset the pressure of cost increase and encourage farmers to increase factor input into organizational production.Secondly,in the aspect of labor input,the long-term existence of dualistic structure increases the labor cost of agricultural production,and in the aspect of land input,land fragmentation hinders the scale of agricultural production and increases the cost.The land circulation makes up for the shortage of fineness and reduces the cost.In the technical aspect,the construction of infrastructure,the rational use of agricultural products and the renewal of management ideas can reduce the production cost.Finally,the paper uses LMDI decomposition technology to quantitatively decompose the influencing factors of tobacco production cost.By comparing the contribution value and contribution rate of each cost to the total cost,we decompose the effect of five major costs on the total cost.The results showed that among the influencing factors of flue-cured tobacco production cost in Henan Province,the most important factor was the discount price of household employment,the second was the cost of employment and material and service,and the least was the reduction of rent and circulation of funds on self-owned land.It is consistent with the conclusion of data analysis.This paper holds that the government should combine with market regulation,pay attention to market changes,adjust the purchase price simultaneously,improve the life of farmers and optimize the industry.The development environment,strengthens the industry to the economic drive ability.