Growth and Evolution in China's Agricultural Support Policies
China is perhaps the most prominent example of a developing country that has transitioned from taxing to supporting agriculture. In recent years, Chinese price supports and subsidies have risen at an accelerating pace after they were linked to rising production costs. Per-acre subsidy payments to grain producers now equal 7 to 15 percent of those producers’ gross income, but grain payments appear to have little influence on production decisions. Chinese authorities began raising price supports annually to bolster incentives and Chinese prices for major farm commodities are rising above world prices, helping to attract a surge of agricultural imports. U.S. agricultural exports to China tripled in value during the period when China’s agricultural support was accelerating. Overall, China’s expansion of support is loosely constrained by World Trade Organization (WTO) commitments, but the country’s price-support programs could exceed WTO limits in coming years. Chinese officials promise to continue increasing domestic policy support for agriculture, but the mix of policies may evolve as the Chinese agricultural sector becomes more commercialized and faces competitive pressures.
|Date of creation:||Aug 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 1400 Independence Ave.,SW, Mail Stop 1800, Washington, DC 20250-1800|
Web page: http://www.ers.usda.gov/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gale, H. Frederick, Jr. & Buzby, Jean C., 2009. "Imports From China and Food Safety Issues," Economic Information Bulletin 58620, United States Department of Agriculture, Economic Research Service.
- Gale, H. Frederick, Jr. & MacDonald, Stephen, 2013. "Untangling China's Cotton Policy (Power Point)," Agricultural Outlook Forum 2013 146854, United States Department of Agriculture.
- Jikun Huang & Xiaobing Wang & Huayong Zhi & Zhurong Huang & Scott Rozelle, 2011.
"Subsidies and distortions in China’s agriculture: evidence from producer‐level data,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 55(1), pages 53-71, 01.
- Huang, Jikun & Wang, Xiaobing & Zhi, Huayong & Huang, Zhurong & Rozelle, Scott, 2011. "Subsidies and distortions in China’s agriculture: evidence from producer-level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), March.
- Huang, Jikun & Wang, Xiaobing & Rozelle, Scott, 2013. "The subsidization of farming households in China’s agriculture," Food Policy, Elsevier, vol. 41(C), pages 124-132.
- Lohmar, Bryan & Gale, H. Frederick, Jr. & Tuan, Francis C. & Hansen, James M., 2009. "China's Ongoing Agricultural Modernization: Challenges Remain After 30 Years of Reform," Economic Information Bulletin 58316, United States Department of Agriculture, Economic Research Service.
When requesting a correction, please mention this item's handle: RePEc:ags:uersrr:155385. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.