Study On Agricultural Interests Compensation Of Grain In Henan Province

Chinese government has focused on the food security and the sustainable development of agriculture for a long time which are major events in people’s livelihood and the national strategy security. We can find the importance of food security and the sustainable development of agriculture from the Central No.l Document from2004which are all focused on promoting rural development and farmers’income. Comparing with industry, agriculture has low interest, with public product features and externality, so the compensation to grain producing areas and farmers become the most important way to boost food production and guarantee food security.It’s a long process to carry interest compensation to agriculture production, with the continuous exploration and gradual reform. There are three aspects in oumeurrent system of compensation for the interests of major grain producing areas:subsidies to producers of major grain producing areas; subsidies to the government of major grain producing areas; the interest coordination mechanism between the producing and consuming areas. Existing compensation policies include all kinds of food subsidies and fiscal incentives to the major grain producing counties, stand by the low acquisition policy, grain-producing counties fiscal incentives, direct subsidies to grain farmers, seed subsidies, farm machinery purchase subsidy, comprehensive agricultural subsidies. The objective of policies is to promote food production and improve farmers’income. In the process of policy implementation, there are deviations between the actual results and objective caused by some problems such as a wild range of subsidies, fragmentation, and low effect on increasing farmers’income. So we need to improve current policies and establish the effective compensation policies to promote food production and increase farmers’ income so that the agriculture can develop sustainable.Henan province is one of the major food producing areas in our country and it faces the same problems such as how to make sure the continuous increasing of grain production and how to improve farmers’ enthusiasm in growing grain with other grain producing areas. Meanwhile, Henan has some differences with other areas such as large population, a high proportion of agricultural population; economic development is lagging behind and so on. To study the policy effectiveness on promoting the food production and framers income increasing base on Henan present situation witch is helpful to come out the agriculture interest’s compensation policies.Base on the research of Henan province agricultural benefit compensation policy validity, and compare the experience of developed countries on agricultural, put the interests of the compensation principles of agriculture and proposed to set up the fund for agricultural development policy recommendations.The article is divided into6parts:The first part is the introduction of the article, analysis the purpose and meaning of the article, review the current research situation briefly, analysis the stakeholders of the interest compensation, analysis the ideas and methods of the study.The second part is the theoretical basis of agricultural benefit compensation policy, including related theories in western economics and political economics theory of Marx.The third part is the classification of Chinese current agricultural benefit compensation policy and the present situation of Henan province. Taking Henan province as an example, with the methods of qualitative analysis and data analysis, study the effectiveness of current agriculture benefit compensation policy from two angles:grain production and farmers’income.The fourth part is the study of grain production benefit compensation policy system of the European Union and other developed countries such as USA and their experience.The fifth part is to put forward agricultural benefit compensation principle and establish a fund for agricultural development policy recommendations base on the above research combined with the experience of developed countries.The last part is the conclusion to paper the innovation points and deficiencies.