The Study Of Food Financial Subsidy Policies For Grain Security In China

Hands of a grain, hearts do not panic.For individuals, food is the most basic material to meet their survival,for a country, it is related to people’s livelihood and sustainable development of the national economy as well as the stability of social politics.Governments often adopt the tool of financial subsidy policy to ensure food security due to the impacts of weak nature of food production, asymmetrical elasticity of grain market supply and demand, relatively low efficiency of grain planting and other factors,.From the 1950s, China began to implement fiscal subsidy for grain production, which was a kind of indirect financial subsidy based on price support.In 2004, China started large-scale implementation of direct subsidies to grain producers, and introduced a package of favorable policies for supporting agriculture, which were the effective tools to solve the food problem and ensured food security.The role of food subsidy policy is a long-term process.Nowdays,arable land especially grain acreage was severely affected in our country and some certain changes in rural food production scale and the structure of crop planting have occurred due to the impacts of internal and external environment of agricultural production, food subsidies standards and changes in the contents of food subsidies,as well as the continued implementation of the new urbanization, agricultural land property rights system reform and the merger of urban and rural construction land system and other programs.It needs to remeasure the actual effect of the current grain subsidy policies on national food security.Therefore, it is necessary to deepen the research on the effect and efficiency of the food financial subsidy policies in protecting our country’s food security under the new background and historical conditions.From the theoretical and empirical perspectives,firstly this paper reviewed the evolution of China’s national food security and food subsidy policies,and then constructed the index system of national food security by drawing on domestic and international experience and actual situation in China,furthermore,the basis of carrying out food subsidy policy and the action mechanism of ensuring national food security were analyzed.Based on this and the national panel data,this paper evaluated the effect of China’s grain subsidy policies by using the grey relational analysis method.It turned out that the effect of the production special subsidies was more significant than the comprehensive income subsidies in protecting national food security,however, the actual effect of the president grain subsidy policies on protecting grain security wasn’t very ideal, which didn’t fully achieve the intended effect of the policy.Based on provincial panel data and cross-sectional data,this paper measured the efficiency of food financial subsidy policies by using BCC model of data envelopment analysis (DEA) and Malmquist index method and found that generally, the comprehensive efficiency of food financial subsidy policies were still effective in the static efficiency analysis and there existed grain subsidies input redundancy and output deficit problem in some invalid provinces,besides, the low efficiency of food financial subsidies and the low conversion rate of technological progress were the main factors that affected the Malmquist index.According to the empirical results, this paper analyzed the problems existing in the food financial subsidy policies and put forward the countermeasures and Suggestions to perfect China’s food financial subsidy policies.