A Study On The Impact Of Henan Agricultural Expenditure On Farmers' Income

Agriculture is one of the important industries that support the normal operation of our national economy.At this stage,the "three agriculture" issues have also become one of the key factors in China's economic development process.Agriculture is a weak industry,and its development is closely related to the national finance.Therefore,financial investment is an important means to solve problems related to rural areas,farmers,and agriculture.Solving the "three agriculture" issues is an important task in the new era,and it is the top priority of party and government work.Henan is a major agricultural province is also the most populated province.Not only bear the responsibility of agricultural product production,but also shoulder the heavy task of improving people's living standards and building a well-off society in an all-round way.The increase of farmers' income requires the stable development of agriculture as a support.The weak nature of agriculture determines that its development depends on the support of the state finance.Therefore,this article takes 18 cities in Henan Province as a sample,and analyzes the impact of fiscal expenditure on agriculture on farmers' income,which is of practical significance for improving the income of farmers in Henan Province and strengthening the level of fiscal support for agriculture.This article sorts out related works and literature on fiscal agricultural support expenditure and farmers' income at home and abroad.Introduced the definitions of fiscal expenditure for supporting agriculture and farmers' income,and then discussed related theories.The mechanism of the effect of fiscal expenditure on agriculture on farmers' income is described from three aspects: promoting employment of farmers,reducing production costs and increasing agricultural output.Then analyzed the current situationand changing trend of Henan province's financial expenditure for agriculture and farmers' income,and found that the total amount of finance for agriculture in Henan Province increased year by year,but the proportion and growth rate were unstable;As the total amount of farmers' income is increasing,the income structure has also changed,and the proportion of property and transfer income has gradually increased.Subsequently,the DEA method was used to analyze the financial performance of 18 cities in Henan Province from 2000 to 2017.The conclusion is that the current financial expenditure for supporting agriculture in Henan Province is relatively low,and the lack of scale efficiency is the main reason.Further improvements are needed in the management and allocation of fiscal funds for supporting agriculture and the scale and structure of supporting agriculture.In order to further study the impact of fiscal expenditure on agriculture on farmers' income at different levels of economic development,based on a theoretical analysis,this paper uses panel data from18 cities in Henan Province from 2000 to 2017 to construct a threshold regression model with the level of economic development as the threshold variable.The empirical analysis method is used to test the true impact of fiscal expenditure on agriculture on rural farmers' income.The empirical results show that Henan's fiscal expenditure on agriculture can effectively promote the increase of rural residents' income,but the relationship between the two is not a simple linear relationship.There is a significant non-linear relationship with a double threshold effect.In areas with low levels of economic development,the role of fiscal support for farming to increase farmers 'income is weak and insignificant.As the level of economic development exceeds the first threshold,the role of fiscal support for farming to increase farmers' income is significantly enhanced.After the level of economic development exceeded the second threshold,the role of fiscal support for agriculture in increasing farmers' income was further enhanced.In addition,the study also found that the level of urbanization,social security expenditure,industrialization,and human capital willalso promote farmers' income growth to a certain extent.Finally,the author puts forward relevant policy suggestions.For example,establish a long-term growth mechanism for supporting agricultural funds,gradually implement a fiscal supporting mechanism for agricultural support,improve the efficiency of using financial supporting funds for agriculture,implement a strong financial supporting mechanism for supporting agricultural funds,and vigorously develop characteristic industries to promote rural industrial integration.The research provides empirical evidence for the performance evaluation of financial support for agriculture and its income increase effect,and also enriches the theoretical guidance for increasing farmers' income,it is hoped that the level of financial support for agriculture in Henan Province will be improved,and it will promote its role of increasing agricultural income more effectively.