Impact of Agricultural Subsidy Policies on Grain Prices in China

Qian, Jiarong; Ito, Satoshi; Zhao, Zhong-Qiu; Mu, Yueying; Hou, Lingling

doi:10.5109/1526325

Cited by 15 publications

(5 citation statements)

References 3 publications

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“…is might have long-term ramifications for farmers and other resource users, not to mention the general public [11]. By implementing sustainable agriculture practices, we save natural resources while boosting our ability to respond to climate change and uncertainty.…”

Section: Related Studiesmentioning

confidence: 99%

A Study on the Effects and Influencing Factors of Agricultural Support and Subsidy Policies from Big Data Computing and Analysis

Chen

Zhen-yu

2022

Mobile Information Systems

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Agriculture is the backbone of any country in any given situation. Without agriculture, it will be very difficult for any living being to survive. To increase productivity in agriculture, the farmers are dependent on government policies and subsidiaries provided to them. The policies and subsidiaries should support and encourage farmers to work hard and do some innovations in agriculture. In this research work, an agriculture dataset concerning the policies and subsidiaries of China is considered. The research proposed a subsidy distribution algorithm for evaluating the policies. The proposed model provided an accuracy of 98% in determining the research objectives. The study results revealed that procedural support for government subsidy policies and agricultural support is low. It is recommended to increase domestic policy to support agriculture.

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Section: Related Studiesmentioning

confidence: 99%

A Study on the Effects and Influencing Factors of Agricultural Support and Subsidy Policies from Big Data Computing and Analysis

Chen

Zhen-yu

2022

Mobile Information Systems

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“…Since the implementation of the fiscal support policy for agriculture in 2004, a number of studies have evaluated the effects of various agricultural policies in China. Many studies investigated the role of total agricultural public expenditures and concluded that agricultural public expenditures could improve agricultural output and enhance agricultural total factor productivity (TFP) (Luo, Zhang, and Ding 2011;Qian and Zhao 2015;Zhou, Zhao, and Huang 2019;Gong and Wang 2021). Most studies shed light on the impact of fiscal agricultural support on food security, farmers' income, and poverty reduction.…”

Section: 834public Expenditures In Ecological Compensation: the Case ...mentioning

confidence: 99%

Toward a Greener China: A Review of Recent Agricultural Support Policies and Public Expenditures

2022

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spending patterns that are needed to spur green, sustainable, and climate-resilient agriculture and contribute to its twin goals of carbon peaking by 2030 and net zero by 2060. The evidence gathered from this study include: (1) the central and local governments have allocated considerable resources over the past two decades to support agricultural and rural development; (2) the composition of public expenditure classified as agriculture, forestry, and water conservancy has changed dramatically in recent years; (3) the public expenditure involving direct support for agriculture peaked in 2015 and has since declined, while public expenditure on general support services has increased and diversified; and (4) the public eco-environmental expenditures have increased considerably and taken on a wide range of different forms.Third, is to facilitate south-south learning by sharing China's experience in formulating and implementing agricultural policies and public spending. The evidence presented in this report shows that China's evolving agricultural and rural development policies and efficient use of public funds have been instrumental in laying the foundations for agricultural productivity growth and, more recently, reducing the sector's environmental footprint. This report concludes that repurposing public policies and producer support or subsidy programs for agriculture is key to China's transition to greener, sustainable, and climate-resilient agrifood systems. The political and economic case for doing this is clear, especially as China seeks to achieve high quality green growth by optimizing its public finances. The report recommends some options for China to consider as it continues to implement policy reforms, which are also relevant to other developing countries: (1) redirect agricultural support tied to specific uses (inputs or practices) or production of specific outputs, to indirect or income support or to promote desirable outcomes (e.g., protecting and restoring critical ecosystems and biodiversity); (2) tie public support to farmers to the reduction of environmental impact and/or to compliance with relevant laws on ecosystem protection and sustainable management; (3) use public funds to double investment in agricultural R&D, extensions and advisory services, and other technical services; (4) avoid linking public support to volume of output, which encourages overproduction, or to area of land owned, which may lead to inequitable or perverse outcomes; and (5) instead, link public funds explicitly to the achievement of positive environmental outcomes, including improving soil health (e.g., soil carbon sequestration, soil organic matter, conservation agriculture, uptake of higher fertilizer), increasing water use efficiency and reducing GHG emissions.We hope that the findings presented in this report will resonate with policymakers concerned with agricultural policies and, more specifically, with public spending programs that aim to improve the productivity of China's agriculture while reducing its environment...

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Section: The Quota Module Key Parameters and Simulation Designmentioning

confidence: 99%

“…For example, Wang and Shen (2014) applied an econometric model with rural household panel data to analyse the effect of China's agricultural tax abolition on rural families' incomes and production, and they showed that the abolition of agricultural tax did not significantly affect agricultural production and increase families' incomes. Qian et al (2015) used a time-series model to analyse agricultural input subsidies and found that agricultural subsidy policies contribute to increases in market prices for grain in China. However, econometric models have significant disadvantages in their application, especially in developing countries, because developing countries are usually not well suited for economy-wide policy analysis relying on econometric techniques for several reasons.…”

Section: Balancing the Sammentioning

confidence: 99%

Corn trade simulations of China: reduction in tariffs versus expansion in tariff-rate quotas

Liu

Yamazaki

Koike

et al. 2021

JES

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PurposeCorn, which has the highest domestic production, planting area and consumption, is the top cereal in relation to demand and supply in China. However, the comparative advantage of China in corn has continuously deteriorated in recent years and based on the recent situation and possible supply and demand trends, it is widely accepted that a corn self-sufficiency rate of 95% is difficult to achieve. Under current import-restriction policies, corn may stand at the crossroads of reforms to solve its predicted insufficient supply. In this study, the authors analyse the necessity of relaxing trade restrictions on corn in China and explore the effects of trade restrictions by reducing tariffs and expanding tariff-rate quotas on corn and related industries and the welfare change caused by possible relaxations.Design/methodology/approachThe authors construct a computable general equilibrium (CGE) model and design nine scenarios for the analysis.FindingsThe results show that relaxations of import restrictions are probable methods to meet the aim of sufficient corn supply during shortages. They are simulated to reduce corn's domestic production and price, increase import and import prices and lead to a decline in self-sufficiency but benefit the production of corn-related industries of corn. The results also imply that expanding the quota is a better method for releasing trade restrictions in China.Originality/valueThe comparative advantage of China in corn deteriorated with an increase in prices. Based on the current situation and possible trends of supply and demand, the referenced goal of achieving 95% corn self-sufficiency appears difficult, implying that reliance on imports is probably imminent and vital. This study provides simulation results in future scenarios and offers policy implications for China's corn trade policies.

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Impact of Agricultural Subsidy Policies on Grain Prices in China

Cited by 15 publications

References 3 publications

A Study on the Effects and Influencing Factors of Agricultural Support and Subsidy Policies from Big Data Computing and Analysis

A Study on the Effects and Influencing Factors of Agricultural Support and Subsidy Policies from Big Data Computing and Analysis

Toward a Greener China: A Review of Recent Agricultural Support Policies and Public Expenditures

Corn trade simulations of China: reduction in tariffs versus expansion in tariff-rate quotas

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