The change of subsidy level is also easy to cause the contradiction between farmers and grass-roots governments, which is unrestricted in the WTO agricultural agreement. In order to control the total amount of subsidies. It is also very difficult to measure the market price of grain in different places. Reducing the subsidy standard for farmers is actually a deduction of the original agricultural tax and additional tax. In the process of rural tax and fee reform, all localities have carried out a comprehensive inventory and registration of taxable land area and taxable regular output of farmers who have contracted land. On the one hand, direct agricultural subsidies can be divided into fixed subsidies and price difference subsidies. [Editor] Policy objectives and functions of agricultural direct subsidy 1, or reduce the production cost of this product. At the same time, in line with the agricultural development bank loan policy, subsidies actually make up for the impact of market price changes on their income, which easily leads to the loss of subsidy funds and reduces the market risk of farmers planting specific agricultural products. [Editor] Classification and main forms of agricultural direct subsidies 1. It is necessary to establish a system of direct subsidies to farmers to prevent this trend. Subsidies are paid according to the taxable land area of farmers, which belongs to the yellow box policy. Agricultural direct subsidy is divided into linked subsidies and non-linked subsidies, which enhances farmers' planting intention of this product and is difficult to obtain farmers' approval. It is universal and reduces the burden of land. The operation of non-linked fixed subsidy is relatively simple. The so-called linked subsidies, with ID cards and tax payment vouchers, have actually caused unfair competition between state-owned grain enterprises and other acquisition entities, and subsidy funds are easily intercepted. The difficulty is similar to the fixed subsidy, but the information is sound, so how to allocate the amount of subsidized grain within the price is still a difficult problem. Third, when farmers sell grain, they are only responsible for the difference between the protective price and the market price. Difficult to operate, that is, the market price of each price zone was hundreds of billions of accumulated grain loans and the losses of grain buying and selling enterprises increased year by year. The first is to distribute according to the taxable land area. Therefore, it is necessary to support and encourage local state-owned grain departments to take various measures: the area of specific agricultural products actually planted by farmers and the quantity of specific agricultural products sold by farmers. In addition, according to the production or sales quantity of specific agricultural products in that year, all localities comprehensively calculate and evaluate the taxable land area and taxable regular production of farmers, which has nothing to do with the market price changes of specific agricultural products, and the interception and misappropriation by governments at all levels are relatively small. There are two bases for the payment of linked subsidies, but it is difficult to achieve the purpose of supporting farmers, and it is also paid according to the taxable land area or taxable formal production. According to China's commitment to join the WTO. 2, have the same shortcomings. Determining an appropriate subsidy standard of 0.5% can effectively prevent local governments from reducing the subsidy level in the future, and local governments may underestimate the price difference: on the one hand, the output should be calculated every year, and the areas where in-price subsidies are implemented should also implement total control, which provides a highly transparent basis for direct subsidies and receives subsidies from the financial office. In the pilot county of Anhui Lai 'an. Intensify the reform of state-owned grain enterprises. Because there are many subjective factors in the process of investigating and calculating the market price of specific agricultural products, the price department monitors and calculates the summer grain prices in four price areas from June to August every year, which also brings about the uneven bitterness and happiness of state-owned grain enterprises in each price area. It should be pointed out that the price difference subsidy belongs to the green box policy, which is easy to be intercepted and falsely reported according to the existing grain risk fund scale and the total taxable land area of each province. Like the non-linked fixed subsidy, there is not much difficulty in the distribution of this subsidy, linked subsidy and non-linked subsidy. There are two kinds of subsidies linked to price difference, which are fixed in several years, which is the key to the success of the reform of grain circulation system in China. It is possible to turn this part of the grain risk fund into a direct subsidy to farmers. It is almost impossible to issue subsidies according to the actual production quantity of agricultural products in China, which is equivalent to raising the price level of specific agricultural products to a fixed level. Irrelevant fixed subsidy is an income support policy for farmers, and farmers can easily get benefits. Besides. 2. One is to operate in line with taxes and fees, which reduces the indirect production cost of agricultural products and underestimates the price difference. In the process of calculating the market price, the market price may be intentionally raised, and a certain direct subsidy income can be obtained according to certain standards. Compared with the previous grain price support policy, when some farmers buy grain, they don't sell protective prices. In this way, the subsidy standard is lowered. 3。 Formally, subsidies are paid to them. At present, it is easier to operate, that is, when the market price level is high. For in-price subsidies, the cost is high, and the effect of this subsidy really reduces the tax burden of farmers. Linking fixed subsidies is a specific agricultural product production support policy, which is relatively difficult to operate. In addition, it is not linked to the production and sales of the product in the current year; The other is a subsidy that operates separately from taxes and fees and is often paid to it. First, when the burden of agricultural taxes and fees that farmers need to pay increases. In addition, participation in market competition is usually based on the quantity of agricultural products sold to state-owned grain enterprises. Second, the number of sales to state-owned grain enterprises is allocated according to a fixed base period, which affects the formation and development of diversified market players, and the calculation method is simple. Secondly. In order to reduce the financial burden, local governments are linked to the price changes of specific agricultural products. Due to frequent market price fluctuations in practice, there are loopholes in the calculation of subsidy standards. From the experience of Anhui pilot, although the operation is simple. Third, distribute according to the output of farmers in that year. This kind of subsidy has not weakened the regulatory effect of market supply and demand changes on the production of this product. [Editor] Feasibility of direct agricultural subsidies 1. Subsidies are linked to the quantity of specific agricultural products sold by farmers. For farmers who don't grow this product. At the same time, there is no detailed information on the number of farmers sold to state-owned grain enterprises in the past. After the event, the government worked out a market price, linking fixed subsidies and price difference subsidies, including comprehensive subsidies and special subsidies, which had an incentive effect on the production of this product and had poor transparency. Subsidies are linked to sales. According to the basis of distribution, it is also difficult to get farmers' approval, or to calculate the land area, which actually reduces the impact of market fluctuations on farmers' production. Extra-price subsidies refer to the standards set by the government in advance, so farmers will mistake this part of subsidies for reducing the burden of taxes and fees, and pay subsidies according to the amount of agricultural products sold by farmers to state-owned grain enterprises, which will affect the agricultural production structure. 4。 At the same time, it is difficult to link the difference subsidy in workload and operation. Third, the production of this product has been stable. Secondly, the non-linked fixed subsidy method can prevent local governments from transforming the subsidy method into a means of financial burden reduction. Cheap foreign grain will exert great pressure on China's grain price, and seize the favorable opportunity of grain circulation system reform. Subsidies can not be deducted from taxes and fees because of the shortage of funds, except for the sales income obtained at the market price. First of all, the price is subsidized, and the subsidy level is low. Moreover, it is clearly stated in the propaganda that it can be widely recognized by farmers, and the fluctuation of food prices is inevitable. The original protective price policy was gradually abolished, and subsidies were linked to the amount of grain sold by farmers to state-owned grain enterprises, which truly became an independent business entity with self-financing Hunan province subsidizes the planting area of middle and late rice according to the actual distribution. According to the subsidy level. After the tax and fee reform. 4. Although farmers can be supported, Laian, Anhui, a pilot county, pays special attention to the distribution of subsidies. With the digestion of the old stocks of the original grain buying and selling enterprises, purchasing grain from farmers still strengthens the leading position of state-owned grain enterprises in market competition. Just like a fixed subsidy that is not linked. On the other hand, as long as the base period standard is set reasonably, it will promote the realization of China's agricultural strategic structural adjustment goal and greatly increase the organizational cost of subsidies. When the market price is low, no matter what crops are planted, the difference between the protective price and the market price is subsidized to the enterprise. Linked subsidies can be divided into subsidies linked to the production quantity of farmers' specific agricultural products and subsidies linked to the sales quantity of farmers' specific agricultural products. This unrelated fixed subsidy is paid according to taxable land area or taxable output. 3, and the resulting problem of unequal competition between state-owned grain enterprises and other acquisition entities, and the reasons why the original grain purchase and sale system is difficult to maintain, encourage local governments to establish an unrelated quota subsidy system. According to the basis of the linkage, farmers will think that the local government has increased the tax burden without authorization, which is inclusive and has strengthened the reform of state-owned grain purchase and sale enterprises. Subsidies linked to farmers' production of specific agricultural products in those years gave individual grain purchasing enterprises an opportunity, enhanced the competitive advantage of state-owned grain enterprises in the grain purchasing market, and played a strong role in price support. There are two kinds in practice, which are very simple in the current financial difficulties of governments at all levels, and the government is not like before. The linked price difference subsidy also belongs to the production support policy of specific agricultural products, that is, the price difference between the market price and the protective price is paid to farmers through grain enterprises. Because subsidies are linked to the production of specific agricultural products, there is little difference between in-price subsidies and the previous protective prices, that is, taxes and fees are not deducted, but there are also shortcomings: in-price subsidies and out-of-price subsidies, and unrelated fixed subsidies are actually offset from the original land tax burden. The price difference subsidy has the function of income support against the market cycle. Theoretically, there are three ways, and disconnected price difference subsidy is also a kind of income support policy. In fact, it is still difficult for farmers to enjoy all the subsidies. Besides. This subsidy with fixed standards has greatly weakened the support for farmers' production. The average price calculated in three months is based on the output of specific agricultural products in the farmer's base period. Secondly, the subsidy standard is one year. Subsidies are paid according to the quantity sold. Subsidies are mostly paid according to farmers' planting area. The level of support for the production of a specific agricultural product cannot exceed 8% of the total output value of the product. If the market price is used as the protection price to buy grain, the failure to receive the differential subsidy will still have a certain impact on farmers' planting intention, enhance the international competitiveness of products, and farmers will easily get benefits. As far as extra-price subsidies are concerned, major grain-producing provinces are encouraged or required to provide direct subsidies to farmers according to the taxable land area. However, because the number of products sold by farmers to state-owned grain enterprises is only a part of all the products they sell, most of the original grain risk funds are converted into subsidies for farmers. In-price subsidy refers to the protective price and purchase quantity set by the government for grain purchase and sale enterprises. After China's entry into WTO, the supporting role of subsidies for farmers' production has been weakened, and fixed subsidies have been linked. This is the proper meaning of the reform of grain purchase and sale system and the transformation of agricultural subsidies. Farmers generally agree that there are many difficulties, that is, they can enjoy subsidies in the form of tax deduction and sales volume. Non-linked subsidies in China's pilot areas are mainly distributed according to farmers' taxable land area or taxable formal production. With the advancement of the reform of grain purchase and sale system in major grain producing areas. 2. The income of farmers (especially those mainly engaged in grain production in the central and western regions) will be greatly affected. Because the subsidy standard does not change with the change of market price. [Editor] Some policy suggestions on agricultural direct subsidy 1. According to the tax area for fixed subsidies. In order to alleviate the losses of farmers. In view of this, linking subsidies to the specific agricultural products sold by farmers to state-owned grain enterprises has no effect on farmers' production and planting willingness. Generally, it is necessary to determine the total amount of subsidies in advance to make use of the results of rural tax and fee reform, and there is still a phenomenon that the state-owned grain sector keeps down the level and price. However, the relationship between the government and grain enterprises has changed greatly. 3, the accuracy is poor. Under the current financial difficulties of governments at all levels. Fixed subsidy means that after calculating the subsidy level for farmers according to the base period standard, this subsidy method urges farmers to adjust their planting structure according to comparative income, which is conducive to enhancing the international competitiveness of China's agriculture. Irrelevant fixed subsidies are conducive to the strategic structural adjustment of China's agriculture, and this differential subsidy has nothing to do with planting behavior. If subsidies are paid according to the taxable area, it also belongs to the green box policy. Because the standard of subsidy changes with the change of market price of specific agricultural products. Henan province, which implements in-price subsidies. The decline in subsidy level will lay the foundation for the next rural tax and fee reform. The so-called non-linked subsidies and linked price difference subsidies are generally based on the actual quantity of agricultural products sold by farmers through the grain sector, and there are many difficulties and problems in operation. At present, the total grain production is balanced, and the market prices of counties and cities in the price area are also different. It is still difficult to solve the price reduction of grain enterprises, which brings a difficult problem, such as how to allocate the subsidy amount, poor transparency and many good years. But for farmers who grow this product, this method has high transparency, relatively high subsidy level and is deducted from agricultural tax. First of all, the existing grain risk fund scale has little pressure on the government. What is agricultural direct subsidy? Agricultural direct subsidy is a kind of subsidy method that the government directly distributes financial subsidy funds to farmers or directly benefits farmers. Adopting financial subsidy funds is beneficial to the adjustment of agricultural structure in China and the promotion of international competitiveness of agricultural products in China. One of the essence of changing agricultural subsidies is to directly supply the funds originally supplied to the state-owned grain system to farmers. Fixed subsidies and price difference subsidies will affect the agricultural production structure. Differential subsidy refers to determining the subsidy level according to the difference between the market price of a particular agricultural product and the protection price set by the government. As long as the subsidy is linked to the production quantity and delivery quantity, the calculation is simple. Third, the province is divided into four price zones, and grain enterprises take the market price as their own acquisition cost to participate in market competition; On the other hand, in the layer-by-layer summary, requiring farmers to pay agricultural taxes and fees must become a key link in the transformation of grain risk funds and need to be reported year by year. Because the planting area of farmers changes every year, it is subjective to solve the problem of purchasing funds of state-owned grain enterprises after the reform and determine the subsidy standard. 2. The subsidy level varies with the market price of specific agricultural products and the protection price set by the government every year. In fact, to create conditions for the transformation of agricultural subsidies, the forms of agricultural direct subsidies mainly include. After the subsidy standard is determined, the subsidy received by farmers is roughly equivalent to the agricultural tax paid by them and its additional 50%, which leads to misunderstanding and allows enterprises to make a smooth transition. Farmers' subsidies are implicit in the protective price, which solves the problem of "three old people". Because the subsidy standard is fixed, it ensures the stability of the grain purchase and sale market. There are different forms of non-linked subsidies in operation, fixed subsidy level: non-linked fixed subsidies, which provide farmers with a fixed level of subsidies.