Research On The Effect Of Fiscal Support For Agriculture Expenditure On Farmers’ Income

"Agriculture,rural areas and farmers" has always been the focus of the Party and the government,and the core of "agriculture,rural areas and farmers" issues is the problem of farmers,farmers income sustained growth is to protect the interests of farmers and ensure the stable development of agriculture and rural areas.Since 2004,the government has issued the "No.1 Central Document" every year,making specific arrangements for the work of agriculture,rural areas and farmers,rolled out a series of policies to benefit farmers and continuously increased fiscal support for agriculture,providing a strong guarantee for the development of farmers,agriculture and rural areas.Agriculture is the foundation of national economy and an important strategic industry.The unique nature of agriculture determines that the government needs to provide policy support and macro-control to it.In recent years,the fiscal policy of supporting agriculture has achieved good results in promoting the increase of farmers’ income,but there are still problems such as unstable growth of farmers’ income and large income gap between urban and rural areas,which restrict the development of economy and society.It is of great significance to explore how to further optimize the fiscal support policy for agriculture and improve the efficiency of fiscal support for agriculture,so as to provide lasting power for the increase of farmers’ income and ensure the stable development of agriculture and rural areas.This paper first reviews relevant domestic and foreign literature,defines the concepts related to fiscal support for agriculture and farmers’ income,clarifies the theory of public goods,the theory of externality,the theory of agricultural weakness,Schulz’s theory of agricultural economy and other theoretical bases,and expounds the mechanism of the influence of fiscal support for agriculture expenditure on various sources of farmers’ income.Secondly,it analyzes the current situation of financial support expenditure for agriculture and farmers’ income,and the effect of financial support expenditure for agriculture to increase farmers’ income.It is found that both financial support expenditure for agriculture and per capita disposable income of rural residents are increasing year by year,but the growth rate is unstable,the structure is also changing constantly,and the coefficient of financial support for agriculture increase fluctuates greatly.Then,using the panel data of 31 provinces,municipalities and autonomous regions from 2007 to 2020,the two-way fixed effect model and threshold model are established to empirically analyze the relationship between the scale of fiscal support for agriculture expenditure and farmers’ income.It is found that fiscal support for agriculture expenditure has a significant impact on farmers’ income,which can effectively promote the improvement of farmers’ income level.There is also a nonlinear relationship between the two.There is a single threshold effect divided by different levels of fiscal support for agriculture and a double threshold effect divided by different levels of economic development.When the level of fiscal support for agriculture crosses the threshold value,the positive impact of fiscal support for agriculture on farmers’ income will be reduced.The positive impact of fiscal support expenditure on farmers’ income is gradually increasing.In addition,the level of rural human capital,urbanization and agricultural modernization will also significantly promote the increase of farmers’ income,while a large proportion of the primary industry will restrict the increase of farmers’ income.Then the grey correlation analysis method is used to analyze the influence of the structure of financial support to agriculture expenditure on farmers’ income,and it is found that each sub-project of agricultural,forestry and water expenditure has a strong correlation degree with farmers’ per capita disposable income,and the structure of financial support to agriculture is reasonable.Finally,based on the theoretical and empirical analysis results,this paper puts forward suggestions such as rational planning of the scale of fiscal support for agriculture,improving the efficiency of fiscal support for agriculture,further optimizing the structure of fiscal support for agriculture,and improving the multi-factor coordination mechanism for increasing farmers’ income.