Study On The Effect Evaluation Of The Incremental Incentive Policy On Farmers’ Income

The healthy development of agriculture is related to the national economy,people’s livelihood and social stability.In the more than 40 years of reform and opening up,my country’s agriculture has gone through three different stages of development.With the continuous improvement of the Party and the government’s attention to it,agriculture has explored the road of modern agricultural transformation with Chinese characteristics in the twists and turns.In the context of the new era,in order to realize the modernization of agriculture and rural areas and alleviate the relative poverty of farmers,the resistance faced by the development of agricultural economy still cannot be ignored.Based on this,General Secretary Xi Jinping proposed the rural revitalization strategy,and issued the Central No.1 document with the theme of "Sannong" for 19 consecutive years,highlighting the important position of the "Sannong" issue in my country’s economic development,and also showing the government’s support determination to develop agriculture.Developing rural finance and transferring funds to agriculture is one of the important measures to promote rural economic development.However,the development of urbanization and industrialization has led to a serious outflow of deposits in rural areas,and the funds retained in the rural financial market cannot meet farmers’ loan needs.There are serious financial constraints in rural areas.In recent years,the state has gradually discovered the problem of lack of funds hindering the development of rural economy,so it has implemented a number of fiscal policies to support the development of agriculture-related loans and rural finance.In recent years,the Chinese government has gradually paid attention to the synergy between finance and finance when formulating policies,and advocated the use of fiscal leverage to guide the flow of financial resources to rural areas.The incremental incentive policy for agriculture-related loans is an innovative policy experiment carried out by the government based on the theory of fiscal and financial synergy,that is,the government provides financial incentives to financial institutions that issue agriculture-related loans that meet the specified scale,which is a way for the government to use fiscal funds to alleviate rural areas.Financial repression is an important means to support agricultural development.This study uses a variety of methods to evaluate the effect of incremental incentive policies,and provides references and ideas for the formulation and improvement of the country’s future fiscal guidance financial policies to support agriculture,which will help the government to better promote the reform of the rural financial service system and rural inclusiveness financial construction.The research content of this paper is the evaluation of the effect of the implementation of the fiscal guidance financial support policy on farmers’ income,represented by the agricultural-related loan increment incentive policy.First,after summarizing the existing literature,the basic concepts and theories of this study were determined.Secondly,this paper introduces the representative policies of fiscal guidance and financial support for agriculture,and takes the incremental incentive policy for agriculture-related loans as the research object,and introduces the supply subject,supply scale and supply structure of agriculture-related loans.Then it briefly introduces the farmers of our country.The income situation lays the foundation for the subsequent empirical research.Thirdly,using the panel data of 31 provinces in China from 2005 to2018,the progressive DID method is used to conduct empirical analysis to verify the first hypothesis proposed in this paper: that the implementation of the agricultural-related loan incremental incentive policy can promote the improvement of farmers’ income,And use two methods of replacing the explained variable and constructing a continuous DID model to test the robustness.Based on the differences in the development strategies of the eastern,central and western regions and the characteristics of various aspects,the heterogeneity analysis is carried out in three parts: the eastern,central and western parts.Finally,the mediating effect of agricultural mechanization,irrigation infrastructure and road infrastructure is further verified through the mediation effect model.The research finds:(1)From the national level,the implementation of the incremental incentive policy for agricultural-related loans can significantly improve the income level of farmers,and the results are still stable after the test;(2)From the perspective of different regions,the incremental incentive policy in the eastern,There is a certain difference in the degree of impact on farmers’ income in the implementation of the central and western regions,and the implementation effect in the eastern region is better than that in the central and western regions;(3)The implementation of incremental incentive policies will stimulate rural financial institutions to increase the issuance of agriculture-related loans,At the same time,farmers’ income will be increased by increasing the level of agricultural mechanization and road transportation infrastructure.The research of this paper deepens the research on financial support for agriculture and financial support for agriculture.According to the research conclusions,this paper puts forward the following suggestions:(1)Improve the financial support policy,improve the system and mechanism of substituting rewards for subsidies,and combining rewards and subsidies,and multi-channel,creatively guide the flow of funds into the rural financial market;(2)the state should strengthen the supervision of the issuance and application of agriculture-related loans to ensure that agriculture-related loans are truly used for agricultural production and construction;(3)promote new digital services for financial and financial cooperation to support agriculture.Model exploration,build and improve characteristic digital application scenarios,optimize relevant fiscal and financial service processes,and facilitate support for agriculture and farmers;(4)According to local conditions,promote the construction of a modern rural financial system,diversify rural financial institutions and services,and innovate financial support for agriculture.Tools and policies to increase the supply of rural financial resources and improve the efficiency of agricultural financing.(5)Optimize the investment structure of agriculture-related loans and improve the use efficiency of investment funds.