How Does the Control of Grain Purchase Price Affect the Sustainability of the National Grain Industry? One Empirical Study from China

Abstract

As one of the most important grain protection policies in China, the minimum purchase price policy prevents the fluctuation of grain output and protects the interests of farmers by regulating the prices of major grain varieties. For developing countries with a shortage of agricultural resources, represented by China, an in-depth study on the implementation effect and public satisfaction of this policy is of great significance for promoting the sustainable development of the grain industry. Based on the interest demands of the government, farmers, grain enterprises and consumers, this paper constructs a policy satisfaction evaluation model based on the Analytic Hierarchy Process and Fuzzy Comprehensive Evaluation. The research shows that the implementation effect of this policy has promoted the sustainable development of China’s grain in four aspects: improving farmers’ enthusiasm for planting, optimizing the structure of supply and demand, reducing the adverse impact of disasters, and ensuring the steady increase of output. However, due to the differences in natural resources and folk customs, the implementation effect of this policy varies in different regions.

Mapping the Spatiotemporal Dynamics of Cropland Abandonment and Recultivation across the Yangtze River Basin

“…Concurrent socio-economic upheavals, like the economic crises of 2008, resulting in urban unemployment, prompted a rural return [101,102], aligning with the observed increase in recultivation area during this period (Figure 13c). Additionally, region-specific agricultural strategies, such as the minimum purchase price for grain products in provinces like Jiangxi, Anhui, and Jiangsu, contributed to the post-2009 surge in recultivation [103,104].…”

An In-Depth Assessment of the Drivers Changing China’s Crop Production Using an LMDI Decomposition Approach

“…The amount of rice and corn planted has significantly increased as a result of the minimum purchase price for crops, the cost of temporary storage, and the high demand for livestock products [60,61]. A previous study found that the minimum purchase price is a key factor in the northeast of China, Jiangxi province, Anhui province, and Jiangsu province, which may extend the positive contribution of yields in these regions, and therefore, outweigh other factors [62].…”

Target price policy and rural household income: Evidence from China

“…Since the beginning of the 21 st century, China's agricultural subsidy policy has continuously been reformed to regulate crop prices (Lopez et al 2017). In 2008, TPP was implemented to stabilise agricultural product prices and increase crop production (Liu et al 2020a). However, continuous increases in grain production have seriously distorted the market mechanism of agricultural products, thus intensifying the imbalance between the supply and demand of agricultural products in the domestic market (Li et al 2020).…”