Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China

Yi, Fujin; Sun, Dingqiang; Ying-heng, Zhou

doi:10.1016/j.foodpol.2014.10.009

Cited by 108 publications

(92 citation statements)

References 30 publications

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“…However, due to the technological progress and heavy use of chemical fertilizer and pesticides, China's grain production presented a growth trend during the past decades [47][48][49]. Nevertheless, the significant urbanization-related agricultural land loss has a positive correlation with grain production decrease and partly threatens food security in some developed areas.…”

Section: Correlation Between Urbanization-related Agricultural Land Lmentioning

confidence: 99%

Urban Expansion and Agricultural Land Loss in China: A Multiscale Perspective

et al. 2016

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China's rapid urbanization has contributed to a massive agricultural land loss that could threaten its food security. Timely and accurate mapping of urban expansion and urbanization-related agricultural land loss can provide viable measures to be taken for urban planning and agricultural land protection. In this study, urban expansion in China from 2001 to 2013 was mapped using the nighttime stable light (NSL), normalized difference vegetation index (NDVI), and water body data. Urbanization-related agricultural land loss during this time period was then evaluated at national, regional, and metropolitan scales by integrating multiple sources of geographic data. The results revealed that China's total urban area increased from 31,076 km 2 in 2001 to 80,887 km 2 in 2013, with an average annual growth rate of 13.36%. This widespread urban expansion consumed 33,080 km 2 of agricultural land during this period. At a regional scale, the eastern region lost 18,542 km 2 or 1.2% of its total agricultural land area. At a metropolitan scale, the Shanghai-Nanjing-Hangzhou (SNH) and Pearl River Delta (PRD) areas underwent high levels of agricultural land loss with a decrease of 6.12% (4728 km 2 ) and 6.05% (2702 km 2 ) of their total agricultural land areas, respectively. Special attention should be paid to the PRD, with a decline of 13.30% (1843 km 2 ) of its cropland. Effective policies and strategies should be implemented to mitigate urbanization-related agricultural land loss in the context of China's rapid urbanization.

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Section: Correlation Between Urbanization-related Agricultural Land Lmentioning

confidence: 99%

Urban Expansion and Agricultural Land Loss in China: A Multiscale Perspective

et al. 2016

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“…Liu [25] conducted an empirical study of a direct food subsidy policy in Shandong Province to analyze the efficiency of policy implementation in different regions. Yi et al [26] argued that, in general, the grain subsidy policy contributes to improvements in farm households' grain planting areas in liquidity-constrained households. In addition, Ito [27] applied a stochastic frontier output distance function to investigate the rationality of Chinese farmers' crop selection and found strong evidence that the Chinese policy of grain self-sufficiency exemplifies the technical and allocative efficiencies of agricultural production.…”

Section: Agricultural Subsidiesmentioning

confidence: 99%

Exploring a Novel Agricultural Subsidy Model with Sustainable Development: A Chinese Agribusiness in Liaoning Province

Cui

Tseng

2016

Sustainability

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Abstract:To improve the incomes of farmers in China, the Chinese government is paying increased attention to the reform of its agricultural subsidy policy. However, the effectiveness of the subsidy remains insufficient and thus fails to encourage farmers to cultivate their land and develop sustainability. Thus, there is a need for a novel model that will improve the effectiveness and efficiency of subsidies. The proposed novel agricultural subsidy model comprises four major actors: farmers, specialized farmers' cooperatives, agribusiness and government. Furthermore, the subsidy in this novel model would no longer go directly to farmers but to the agribusiness. To develop the model, the empirical data for this study are obtained from a Chinese agribusiness in Liaoning Province that was selected as a benchmark. With this novel model, farmers receive triple rebates: the price received when the rice is initially sold; a share of the profits of the specialized farmers' cooperatives; and a share of the profits of the agribusiness. Accordingly, exploring the optimal subsidy rate for agribusinesses is the critical task of this study, and the results demonstrate that agribusinesses must use the government subsidy policy as the basis for a dynamic subsidy model that ensures the income of farmers and encourages sustainable development.

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“…Meng (2012) found that the grain subsidy can keep farmers from engaging in migratory work, indicating that it may improve grain production. Yi, Sun and Zhou (2015) found that the grain subsidy can increase grain planting areas for liquidity-constrained households. Our interviews of farmers and field observations suggest that subsidies to rice producers in general are not large enough to alter the relative economic returns from rice cultivation and non-farm income, and therefore we should not expect a significant impact on grain production, agreeing with Gale, Lohmar and Tuan (2005).…”

Section: Tablementioning

confidence: 99%

“…Most of these studies use an econometric approach. Econometric models, e.g., Yi, Sun and Zhou (2015), are powerful in identifying general patterns, especially when large, representative samples are used. However, they generally lack in-depth understanding of causal mechanisms.…”

Section: Tablementioning

confidence: 99%