Study On The Grain Farmers’ Income From The Perspective Of Resources Allocation Of Household: A Village Case

It is an important mission for the communist government of China to accelerate the increase of the farmers’ income in the major grain producing areas. The existing studies analyzed the current situation, the difficulties and the way to increase the farmers’ income mainly in the macroscopic view. But, there are not many related studies in the microscopic view.First of all, this study presented a hypothesis that the resources allocation of the small farmers in China now is not rational in the view of Marxist resources allocation theory. Then, it analyzed a package of cross sectional economic data of 165 farmers in a village case of 2012, to examine the hypothesis above with the method of regression and etc., based on the household investigation by the author in an ordinary and representative village in which the farmers mainly produce grains. In the end, the author brought a theoretical explanation and measures of historical materialism.In the view of Marxism, a rational resources allocation means a co-ordination of supply and demand, and the least cost of the resources. This paper assumed that the objective of the resources allocation of the farmers is the maximation of their income. Now, the small farmers in China between the crevice of the natural economy, the market economy, and the planned economy are facing many complicated problems, so they can hardly allocate the resources rationally, and can hardly maximize their income.The empirical analysis on the village case indicated that the farmers did not allocate the resources rationally, so did not maximize their income indeed. They put excessive money and labor in the agriculture, so they did not get the output with the least resources. The grain supply can satisfy the demand in a relatively steady situation, with the price support of the government. The vegetable supply fluctuated fiercely in the action of the market mechanism, so some resources put in the vegetable growing were wasted recurrently.The theoretical analysis in the view of Marxism indicated that, in the period of transformation in the present China, the resources allocation of the small farmers exhibits the characteristics of the natural economy, the market economy, and the planned economy, so the allocation of the resources cannot satisfy the requirements of the productive forces. So they can hardly allocate the resources rationally. Specifically, in the resources allocation of the farmers, the factors of the natural economy and the market economy are too rudimentary to satisfy the demand of the advanced productive forces; and the factors of the planned economy are too weak to coordinate with the development of the productive forces.The government should help the farmers to establish enough cooperatives based on the will of the farmers, and enhance the macroeconomic control in the agriculture and the labor market. Then, the resources allocation of the farmers can be more rational, and the farmers’ income can be increased.