Study On The Effect Of Minimum Purchase Price On Wheat Production Efficiency

In 2021,No.1 central document was the first to promote the reform of the supply side structure of agriculture and enhance the ability to guarantee grain supply.Increasing grain production is the premise to solve the grain problem.Adhering to and improving the implementation of the minimum purchase price policy is of great significance to ensure food security,achieve abundant wheat production and a good harvest for farmers With the development of trade policy liberalization,some major grain producing provinces in China not only fall into the strange circle of "simultaneous increase of three quantities and simultaneous rise of three books",but also face the contradiction of "cheap grain hurts farmers and expensive rice hurts people".As the primary industry,agriculture’s economic development is the basis for the development of other departments,and the realization of economic growth mainly depends on increasing input factors or improving efficiency.The former can promote the growth of economic aggregate,while the latter can achieve the common improvement of aggregate and quality.Therefore,it is of practical significance to explore the impact of the minimum purchase price policy on wheat production efficiency in major grain producing areas under the background of the development of high quality and high standards of agriculture.Based on the 1999-2018 panel data of 14 wheat-producing provinces in China,this paper firstly,measures wheat production efficiency using the SBM model to quantitatively analyze the differences between policy-implementing and non-implementing provinces.Second,the provinces implementing the policy are not arbitrarily decided,but are based on the overall macroeconomic development considerations,and these factors may in turn affect wheat production efficiency;therefore,this paper uses a double difference approach to minimize the potential site-selection endogeneity problem in the policy evaluation process and identify the causal relationship between wheat production efficiency and the minimum purchase price policy effect.Finally,to ensure the true reliability of the empirical results,this paper conducts robustness analysis in four aspects: parallel trend test,introduction of competitive policies,exclusion of provincial macroeconomic development factors,and placebo test.The study shows that the overall production efficiency of wheat-producing provinces in China is low,and all wheat production efficiency is decreasing before the implementation of the minimum purchase price policy,after which the production efficiency of wheat-producing provinces shows stable fluctuating changes,but there are significant differences between policy-implementing provinces and non-implementing provinces,with the former showing an increase and the latter a decrease.Under the causal identification of double difference method,the minimum purchase price policy has a significant contribution to the improvement of wheat production efficiency,and the conclusion still holds after the parallel trend test,introduction of competitive policy,exclusion of provincial macroeconomic development factors and placebo test.Based on the research of this paper,it is proposed to make policy recommendations from the following four points: First,focus on macro-balanced development and coordinate the balanced development of efficiency.Second,to accelerate the construction of production factor allocation and stimulate the production potential of wheat support factors.Third,create a good external social environment to achieve industrial integration and development.Fourth,optimize the minimum purchase price policy mechanism to give full play to the policy advantages.