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.
Highlights
Chinese government’s fTohcuesCohnininesdeugstorviaelrinzmatieonnt’ps ofoliccuyshoans sinedriuosutsrliyalimzaptiaocntepdoaligcryichualstusreer.iously impacted agriculture. to acknowledge eBnyvifraoilninmgentotaalciksnsuoews,letdhgeepernomviorotinomn eonftagl risicsuletsu,rtahletepcrhonmoolotgioynleoafdasgrtiocultural technology leads to ction of land andtshuesdtaeisntarublcetiroensoouf rlcaensd
The Chinese government is aggressively reforming the agricultural subsidy policy to promote sustainable development, which entails the simultaneous consideration of environmental issues, land governance, food security and productivity enhancement
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
Summary
Chinese government’s fTohcuesCohnininesdeugstorviaelrinzmatieonnt’ps ofoliccuyshoans sinedriuosutsrliyalimzaptiaocntepdoaligcryichualstusreer.iously impacted agriculture. to acknowledge eBnyvifraoilninmgentotaalciksnsuoews,letdhgeepernomviorotinomn eonftagl risicsuletsu,rtahletepcrhonmoolotgioynleoafdasgrtiocultural technology leads to ction of land andtshuesdtaeisntarublcetiroensoouf rlcaensd. In the recently proposed Thirteen Five Project (2016–2020) This project includes developments in innovation, coordination, sustainability, opening up and sharing), the Chinese government significantly modified its agricultural subsidy policy to implement the three-item subsidies policy, signaling the support of large-scale producers and operators. The objective of this study is to develop a novel agricultural subsidy model to assist agribusinesses as they explore the optimal subsidy rate. This subsidy rate must allow for an increase in the income of farmers and promote the sustainable development of agriculture. The conclusion, research limitations and suggestions for future studies are discussed in the final section
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