Research On The Influence Of Grain Price Policy On China’s Grain Security

Since the concept of Grain Security was proposed by The Food and Agriculture Organization of the United Nations in the late twentieth century,it aroused extensive attention worldwide.Especially due to the increase of the population,the higher demand of the grain,environmental degradation,and frequent natural disasters,the grain issue becomes more important.Grain is the foundation of the national economy,the necessity of human survival,and important source of farmers’ income.The grain industry has a direct impact on social stability.And our nation’s grain industry is affected by the global security issues.Under the circumstances of global grain crisis,more attention should be paid to our domestic grain production.Along with the development and transition of the economy of recent years,different factors impact the grain security.However,there is no uniform standard concept of grain security in our country until now,and there is no authoritative method to evaluate grain security.Maintaining a healthy development and guaranteeing the safety of a nation’s grain industry can not do without grain price policy.But the grain policy needs to be improved and perfected consistently according to objective circumstances of national grain industry development.Since the foundation of China,the government announced various grain price policies based on the economy,society,and the development of the grain industry.They had profound influence on grain industry during different period.However,the current grain policy has been implemented for over a decade.And there is almost no change during this period,except keeping raising the minimum purchase price of wheat and rice.There is a huge difference between original circumstances of minimum grain purchase price and current development of grain industry and grain security level.The problems,comes with this policy,such as unreasonable grain structure/high grain storage and high import are having a serious influence on our country’s grain security.Persisted grain price policy will stop the development of grain industry at the end of the day.To adjust current grain price policy,it has to figure out the in,fluence of current grain price policy over the development of grain industry and grain security.Hence,a scientific assessment of the influence will assist to clarify implement result of grain price policy,and support relevant departments making decision and it has a strong theocratic and practicing meaning.Based on the research results on the grain security from Chinese and out of country,this artical has a scientific,in-deep and systematic research by utilizing The Weak Industry Support Theory,The new economic Institution Change Theory,and The Public Goods Theoryand Industrial Security Theory,Theil index and Gini coefficient to assess our country’s grain security level,and on this basis,combining the grain price policies from other countries,this artical promotes a series of suggestions that can protect the development of China’s grain industry and improve the level of grain security.This artical first reviewed the changes of China’s grain price polices in the history and evaluated the level of grain security from 1985 through 2015.Based on these information,this artical evaluated the level of grain security in different provinces and areas by using coefficient of variation,Theil index and Gini coefficient.It also analyzed the difference of the grain security among provinces and the reason for that.Furthermore,this artical structured the evaluation system from three aspects:grain production,grain consumption,and resources.It evaluated the different components of grain security with Principal Component Analysis and then concluded the effect of each component.In the end,by having an example of the implement of Corps Minimum Purchase Prices policy,the artical analyzed the level change of grain security of wheat and rice before and after the policy.This artical researched on the influence of China’s price policy on grain security and promoted solutions accordingly to secure our country’s grain security.After a thorough research,this paper comes to the main conclusions as follow:1.Chinese overall food security level has been increasing since 1985,however,regional and provincial food security differences is growing,and the main reason is the process of Chinese urbanization and industrialization.2.for those factors which affect our country’s food security,the most influential one is the level of agricultural mechanization,then population,effective irrigation area,sown area,area covered and affected by natural disaster,increasing of grain output,Engel’s Coefficient,price index of agricultural means of production and per capita net income of farmers.3.For those provinces which implement minimum crop’s purchase price policy,the per-capita wheat output has increased 3.071 kg,the per-capita rice output has increased 1.639 kg.The model proves that our country’s minimum crop’s purchase price policy can improve average per capita amount of grain effectively.Hence it is certain that minimum crop’s purchase price policy has a significant positive effect on our country’s food security.The study shows that there are some insufficiency and hazards of our country’s food security.Hence,this paper makes some suggestions from three aspects:improving our country’s crop’s purchase price policy,increasing the comprehensive productivity of grain and seeking a proper solution for the conflicts among food industry,urbanization and industrialization,to ensure our nation’s food security level is within a reasonable zone,and secure a healthy and stable development of our nation’s food industry.