The Influence Of Grain Direct Subsidy On Grain Production

In 2002,China began to pilot the policy of grain direct subsidy,and then quickly spread to the whole country.Since the implementation of this subsidy policy,China's grain output has been increasing year by year,while the income level of farmers has also been greatly improved.However,at present,China's grain production is also facing some new problems and challenges,such as:the low efficiency of grain production?the need to optimize the way of we produce food?food subsidy system is not perfect,and so on.China's grain direct subsidy quota is rising every year.Does the grain direct subsidy policy play a key role in promoting grain production?If it works,how does the working mechanism come into being?What are the specific effects on their grain production behavior when farmers receive grain direct subsidies?Do farmers of different planting scales and different income levels have the same impact?Positive answers to these questions will help to clarify the mechanism of China's grain direct subsidy policy,and play a positive role in the grain direct subsidy policy,and then better safeguard national food security and stabilize the sustainable development of the national economy.Firstly,this paper combines the grain subsidy policy of our country and divides the grain subsidy policy of our country into two important stages.The first stage is the indirect subsidy stage of grain subsidy,which spans from 1978 reform and opening up to 2001 China's grain subsidy policy reform.The reform of grain subsidy policy indicates that grain subsidy in China has changed from circulation link to production link.The second stage is the direct subsidy stage of grain subsidy,which started in 2002 in Jilin Province and Anhui Province and has been experimenting with grain direct subsidy till now.Then this paper analyses the theoretical basis of agricultural subsidies,mainly from four aspects:the first is the weakness of agriculture,the second is the multi-function of agriculture,the third is the theory of welfare economics,and the fourth is the theory of asset poverty.Agriculture belongs to the weak industry and needs to be protected in order to make it develop better;agriculture has multi-function,and agriculture is the basis for human survival,which deserves the attention of all countries;from the perspective of welfare economics,supporting the development of agriculture will help to promote social equity and improve the overall welfare level of the whole society;the last theoretical basis is the theory of asset poverty,only by alleviating the constraints of farmers' production funds,the efficiency of grain production can be improved more effectively.The main part of this paper is the empirical analysis of the impact of grain direct subsidy policy on grain production.Based on panel data of 17 cities in Shandong Province from 2011 to 2015,the impact of grain direct subsidy policy on grain production in Shandong Province is analyzed in depth,and then the situation of the whole country is explained.On the basis of the overall analysis,this study further proceeds from two different perspectives,dividing 17 cities in Shandong Province into high,medium and low-scale management groups according to the size of planting scale;another perspective is income level,which divides 17 cities in Shandong Province into three groups according to the level of annual per capita net income of farmer.The main basis for the different division is that the direct subsidy of grain has a certain relationship with the scale of grain planting,and as a decoupled income subsidy,the direct subsidy of grain is a kind of government transfer income.Further discussion from these two dimensions will help us to better understand the impact mechanism between grain direct subsidies and grain production.According to the conclusions drawn from the study,this study holds that:firstly,the grain direct subsidy policy has a certain role in promoting grain production,and the role is obvious.Secondly,the effect of grain direct subsidy policy on grain output varies with different scale of planting.The effect of grain direct subsidy on increasing grain production is positively correlated with the scale of grain planting.The effect of grain direct subsidy policy on large-scale farmers is more positive.Finally,the grain direct subsidy has a negative correlation with the annual per capita net income of farmers in promoting grain production.The grain direct subsidy policy has the most obvious role in promoting the grain production of low-income groups.As a transfer income supported by the government for agricultural development,the grain direct subsidy policy can ease the restriction of agricultural production funds of low-income farmers to a certain extent,but its role in stimulating farmers with higher per capita income is not obvious.