The Influence Of Fiscally Preferential Policy On Agriculture Over The Fluctuation Of Agricultural Product Price

China is a large agricultural country. The fluctuations of agricultural prices will affect other areas of industry as well the operation of national economy and the stability of the society. Therefore, this paper mainly discusses the significance of the price volatility. This paper, which takes the price fluctuation of Chinese agricultural product as the research object, mainly discusses the influence of supportive fiscal policies on agricultural price fluctuations. The author firstly gives a brief introduction of the relevant theories about fiscal policy and price fluctuation of agricultural products; secondly, analyzes the general information, scale and structure of supportive fiscal policy, as well as the factors, current situations, characters and its influences. Finally, through the analysis of factors that affect the price fluctuation of the agricultural products, the author extracts the important factors; and the author takes advantages of Johansen test, impulse response and variance to make a full analysis on the influencing factors on the agricultural price volatility. Empirical results show that supportive fiscal policy has a huge influence on agricultural products’ price fluctuations. In the long run, it is the fiscal fund and agricultural product cost that drive the price of the agricultural products up. And labor inputs and fixed investments restrict the price from going up. In short terms, agricultural product cost and labor inputs have a less apparent influence on the price of agricultural products. However, the fixed investments and fiscal fund are major factors. Fixed investment is beneficial to short-term regulation of price, while the fiscal fund speed up the price inflation.Focused on the restrictive factors, this paper proposes some corresponding solutions. First, optimizing fiscal fund’s structure through increasing capital investment; second, increasing the investment on the training of the farmers and the technicians, thus to encourage the building of rural cooperative economic organizations; third, integrating fiscal fund and regulating the use; fourth, strengthing fiscal support; last but not least, setting up the information platform of price of agricultural product on the purpose of reducing information asymmetry.