Efficiency Evaluation of Effect of Direct Grain Subsidy Policy on Performance of Rice Production

Using the DEA analysis method,on the basis of the national panel data from 2002 to 2014,this paper made a comparative analysis on the rice production performance before and after the implementation of direct grain subsidy policy,and made an empirical analysis on the relationship between the direct grain subsidy policy and the changes in the rice production performance. The results showed that the effect of the direct grain subsidy policy on promoting the rice production performance is declining year by year,largely because drop of scale efficiency. Besides,there are problems of serious redundancy in agricultural subsidy,unreasonable resource allocation,leading to low performance and resource waste of rice production.

Scheme of Constructing CGE Model of China's Direct Grain Subsidy Policy

This paper introduces the model of China's direct grain subsidy policy, adopts computable general equilibrium (CGE) theory, and advances the scheme of constructing the model of China's direct grain subsidy policy. On the basis of some assumptions, such as conforming to the complete competition of market, inexistence of move of capital and labor forces among countries, unchanged exchange rate and incomplete substitution, and the main body of behavior comprising representative households, producers, local government and central government, the model established in this paper includes production module and demand module. Moreover, the model takes into account equilibrium structure, the definition of profiting and macro condition for closure, the related coefficients this CGE model needs include Armingtion substitution elasticity of intermediate composite product, investment composite product and consumption composite product between import and domestic production; substitution elasticity among production factors; conversion elasticity of total sales between domestic absorption and export; elasticity of residents' expenditure; elasticity of price; elasticity of export demand; the relative share of all sectors in capital stock. This paper also points out the advantages and limitations of CGE model in analyzing direct grain subsidy policy.

Analysis of the System of Direct Subsidy for Grain Production in China

This paper introduces the status quo of the system structure of direct subsidy for grain production in China,and analyses the function and essence of direct subsidy for grain production in China as follows:the function of direct subsidy for grain production in China is to protect and promote the development of food industry,ensure food supply and national food security,protect grain growers' interests,and maintain the dominant position of national food trade;the essence of direct subsidy for grain production is the compensation for grain producers' reasonable interests,the compensation for positive externality of grain production,and social costs of adjusting equilibrium between food supply and demand.We discuss the problems existing in the system of direct subsidy for grain production in China and put forward corresponding countermeasures as follows:first,adhere to improving synergetic system of direct subsidy for grain production;second,adjust the direct subsidy method of grain production;third,establish long-term mechanism of subsidy for grain production;fourth,promote the information-based service level of the system of direct subsidy for grain production.

How Far Is China’s Grain Subsidies Level from the Ceiling of Amber Box Support?-Evaluation Based on WTO Rules

Using the aggregate measurement of support （AMS） approach of the World Trade Organization （WTO）, this study estimates China＇s product-specific and non-product- specific amber box support levels between 2008 and 2013. The result indicates that China＇s product-specific amber box support level has significantly increased but not yet exceeded the tolerable ceiling of de minimis and remains consistent with WTO rules on agricultural domestic support,＂ that there is still policy room for product-specific amber box support but the ceiling of de minimis has already imposed substantial constraint on China＇s grain price support policies; and that despite rapid increases in non-product-specific amber box support levels, future policy space remains significant. The result also suggests that China should make appropriate adjustments to product-specific amber box support policies in accordance with WTO rules on agricultural domestic support and make proper use of non- product-specific amber box support policies.

Assessment of natural resources and the policy of subsidies in grain production

Based on the analysis on the status quo of natural resources input in Brain production and on the policy of Brain subsidies, this paper puts forward a new idea - establishing grain subsidies through assessing the value of the natural resources in Brain production. The assessment of the natural resources in Brain production provides rationale and reference standard for the policy of Brain subsidies, which will promote the sustainable use of natural resources accordingly. This paper concludes： （1） it is necessary for the grain subsidies to assess the full value of natural resources, including economic value, ecological value and social value： （2） the government should give farmers direct subsidies or environment subsidies according to the economic and ecological value of natural resources in grain production, （3） the social value of natural resources can be realized by establishing the country social security system, taking the social value as the criterion for the payment for part of farmers＇ insurance.

Quantitative Assessment of the Impact of China's Direct Grain Subsidies on Grain Yield--Based on the Empirical Analysis of Panel Data Pertaining to 29 Provinces in the Period 2004-2007

We build the influence function empirical model of China's grain production at the present stage in view of the factors influencing direct grain subsidies,using Cobb-Douglas production function model.And we estimate the elasticity coefficient of impact of China's direct grain subsidies on grain yield,using the panel data pertaining to 29 provinces in the period 2004-2007;comparatively analyze the validity and limitation of policy factors of direct grain subsidies on China's grain yield.The results show that at the present stage,the elasticity coefficient of impact of China's direct grain subsidies on grain yield is 0.002 3,and under the existing subsidy system and level,direct grain subsidies play a positive role in increasing grain yield,but the role is limited;the elasticity coefficient of impact of the food price on grain yield is much larger than that of impact of direct grain subsidies on grain yield.Therefore,the government should strengthen and improve direct grain subsidy policies;in the mean time,pay full attention to the use of market mechanism to consolidate the basic role of the food price in promoting food security to a great extent.