The Economics Analysis Of The Subsidy Policy For Purchasing Agriculture Machines

With the deepening of China’s reform, social and economic life has undergoneprofound changes, agriculture is going through a critical period of transition fromtraditional agriculture to modern agriculture. In this process, the mechanization offarming plays a vital role, which directly determines the pace and speed of thisprocess and the competitiveness of agriculture. In order to promote the process ofagricultural mechanization, from2004, China began to implement the subsidy policyfor purchasing agriculture machines, and the central financial year to allocate specialfunds to subsidize farmers who buy agricultural machinery, while local governmentsare also actively raise the matching funds, ensuring the implementation of this policy.With the deepening of farm machinery purchase subsidy policy, the level ofagricultural mechanization in China have increased significantly, a significantincrease in agricultural output and agricultural labor productivity, increased farmers’income. Therefore, this research will through economic analysis in order to moreclearly understand the effect and to provide practical and theoretical basis for thefurther implementation of the policy.Based on the analysis of domestic and foreign agriculture support policies, theresearch used government economics, institutional economics and welfare economicsfrom three aspects to discuss the implementation, processes and effects of farmmachinery purchase subsidy policy, and further through the statistical date to buildthe economics models for empirical analysis, the results showed that: with thepurchase of agricultural subsidy policy, the process of agricultural mechanization inChina has improved strongly, and also it has promoted industrial restructuring andincreased the speed of the transfer of rural surplus labor force, and also increasedfarmers’ income and promoted the development of listed agricultural company.Finally, combined with the empirical results, and base on the problems in the processof implementing this policy, this research brings forward specific measures andsuggestions.