After more than thirty years of reform and opening up, China has entered a crucial period, and the economy is in transitional age. At present, China has generally entered a new stage which promoted agriculture and rural development. The situation of agriculture supporting industry and rural areas supporting the city has gradually turned into industry nurturing agriculture and cities supporting countryside. Agricultural subsidies, as a fiscal policy tool is a major means to solve the problems facing agriculture, rural areas and farmers. Cultivated land is absolutely critical to solve the problems facing agriculture,rural areas and farmers, as a scarce non-renewable factor of production. The carrying-out of the agricultural subsidies provides energy to the circulation of cultivated land, and regulates the process of circulation, which will be greatly necessary to solve the problems facing agriculture, rural areas and farmers, realize agricultural modernization and promote nation’s comprehensive strength.Based on the relevant domestic and foreign research literature of agricultural subsidies and cultivated land circulation, action mechanism, we theoretically analyzed the action mechanism of agricultural subsidies, the influence factors and the response mechanism of cultivated land circulation, the influence of agricultural subsidies to the cultivated land circulation. We described and analyzed the survey data of Shandong Province, and construct unary linear regression and logistic model combining the knowledge of measurement. The following conclusions are drawed, 1, The carry-out of the agricultural subsidies have a certain impact on cultivated land circulation. 2,Under different levels of economic development, cultivated land level is different. 3, The gricultural subsidies policy plays a role in the raising of circulation rate, and also in the action of circulation. 4, Agricultural subsidies and farmers’ health condition have different influence on inflow and outflow of cultivated land.Based on the analyses above, we put forward the following policy suggestion, to improve the management and regulation system, to protect the land contractual management rights, to develop new means of circulation of cultivated land, to adjustpolicies to better its adaptability, and to raise the subsidies price properly. |