Research On A Perfected Subsidy System For Advancing Modern Agriculture

The development of modern agriculture is the primary task of building the new socialist rural, is the inevitable requirement of rural work based on the scientific concept of development. The positive development of modern agriculture and making solid progress in new socialism countryside construction, are the inevitable requirement of carrying out the scientific development view, constructing socialist harmonious society, and the great tasks to speed up the socialist modernization. Although the construction entity are farmers and enterprise, but to overcome the "market excessive" and "market shortage" problem in the construction of modern agriculture, the government should play their due function, through subsidies to advance the agricultural construction, increase efforts of agricultural subsidy policy by means of well-leveraged government investment, pour energy into agricultural development, promote modern agriculture construction and to ensure the national food security.This paper adopts a method that combines partial-equilibrium analysis, theoretical analysis and demonstration to do the research. The conclusion of theoretical analysis indicates that the development of modern agriculture can not do well without agricultural subsidy. The source and reasons of agricultural subsidy lie in the decrease of agriculture and growth of interest of industry, inferiority and the need to protect nation’s food security. Yet, the fundamental way out is the development of modern agriculture.The agricultural subsidy policy conducted in our country had different contents at different periods in history, having undergone the phases of negative protection, even and full transition. The year2004is an important time in the policy change of agricultural subsidy. Take the first policy document of2004as the opportunity, direct subsidy has been fully under way, at the same time, our country liberalize the grain purchasing price and grain market, marked the set of a "new agricultural policy"The empirical study of this paper shows:first, in the process of develop modern agriculture, to combine agricultural subsidy with modern agriculture would make it easier to accomplish the goals, while deviating from the goal of agricultural subsidy policy often brings a variety of efficiency loss. We draw these conclusions based on the experiences and lesson of agricultural subsidy conducted in East Asian countries during their development of modern agriculture. Second, calculating contribute agricultural subsidy have done toward mechanization, irrigation and the yield of farmland. Based on the objectively evaluates in the roles subsidy played in the development of modern agriculture, we come to the result that subsidies conducted now really promote the development of modern agriculture.We take the results of theoretical analysis and demonstration as main basis. To increase the contribute agricultural subsidy to modern agriculture, this paper comes to such suggestions:increase the input of agricultural subsidy to promote the development of modern agriculture; optimize relevant supporting measures subsidies conducted; innovate kinds of subsidy to develop modern agriculture; improve The modern agricultural equipment of subsidies; make good use of blue box allowance.