IDEAS home Printed from https://ideas.repec.org/p/ags/uersrr/155385.html
   My bibliography  Save this paper

Growth and Evolution in China's Agricultural Support Policies

Author

Listed:
  • Gale, Fred

Abstract

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.

Suggested Citation

  • Gale, Fred, 2013. "Growth and Evolution in China's Agricultural Support Policies," Economic Research Report 155385, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:155385
    DOI: 10.22004/ag.econ.155385
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/155385/files/err153.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.155385?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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(01), pages 1-19.
    3. Kym Anderson, 2010. "Policy Reforms Affecting Agricultural Incentives: Much Achieved, Much Still Needed," The World Bank Research Observer, World Bank, vol. 25(1), pages 21-55, February.
    4. 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.
    5. Gale, H. Frederick, Jr. & MacDonald, Stephen, 2013. "Untangling China's Cotton Policy (Power Point)," Agricultural Outlook Forum 2013 146854, United States Department of Agriculture, Agricultural Outlook Forum.
    6. 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.
    7. Fred Gale, 2009. "Financial Reforms Push Capital to the Countryside," Chinese Economy, Taylor & Francis Journals, vol. 42(5), pages 58-78, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tristan Kenderdine, 2018. "Insurance Plus Futures: Agricultural Commodity Price Reform in China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(2), pages 331-346, May.
    2. Brink, Lars & Orden, David, 2017. "The United States WTO Complaint on China’s Agricultural Domestic Support: Preliminary Observations (Paper)," Proceedings Issues, 2016: Climate Change and International Agricultural Trade in the Aftermath of COP21, December 11-13, 2016, Scottsdale, Arizona 253002, International Agricultural Trade Research Consortium.
    3. Lai, Wangyang, 2017. "Pesticide use and health outcomes: Evidence from agricultural water pollution in China," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 93-120.
    4. Hao Wang & Jan Fidrmuc & Qi Luo & Mingzhong Luo, 2018. "What Stayers Do? Capital Endowments and On-Farm Transitions in Rural China," CESifo Working Paper Series 7306, CESifo.
    5. Arnade, Carlos & Cooke, Bryce & Gale, Fred, 2017. "Agricultural price transmission: China relationships with world commodity markets," Journal of Commodity Markets, Elsevier, vol. 7(C), pages 28-40.
    6. Beckman, Jayson & Dyck, John & Heerman, Kari, 2017. "The Global Landscape of Agricultural Trade, 1995-2014," Economic Information Bulletin 265270, United States Department of Agriculture, Economic Research Service.
    7. Yao, Guolin & Hertel, Thomas W. & Taheripour, Farzad, 2017. "Understanding China's Soybean Boom from Historical Validation," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258373, Agricultural and Applied Economics Association.
    8. Tian, Qing & Lemos, Maria Carmen, 2018. "Household Livelihood Differentiation and Vulnerability to Climate Hazards in Rural China," World Development, Elsevier, vol. 108(C), pages 321-331.
    9. Joseph Glauber & Simon Lester, 2020. "China - Tariff Rate Quotas for Certain Agricultural Products: Against the Grain: Can the WTO Open Chinese Markets?," RSCAS Working Papers 2020/91, European University Institute.
    10. MacDonald, Stephen & Gale, Fred & Hansen, James, 2015. "Cotton Policy in China," MPRA Paper 70863, University Library of Munich, Germany.
    11. Gale, Fred & Arnade, Carlos, 2015. "Effects of Rising Feed and Labor Costs on China’s Chicken Price," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-14, July.
    12. Li, J. & Chavas, J.-P., 2018. "How Have China s Agricultural Price Support Policies Affected Market Prices?: A Quantile Regression Evaluation," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277557, International Association of Agricultural Economists.
    13. Tian, Qing & Holland, John H. & Brown, Daniel G., 2016. "Social and economic impacts of subsidy policies on rural development in the Poyang Lake Region, China: Insights from an agent-based model," Agricultural Systems, Elsevier, vol. 148(C), pages 12-27.
    14. Feng Ye & Zhongna Yang & Mark Yu & Susan Watson & Ashley Lovell, 2023. "Can Market-Oriented Reform of Agricultural Subsidies Promote the Growth of Agricultural Green Total Factor Productivity? Empirical Evidence from Maize in China," Agriculture, MDPI, vol. 13(2), pages 1-20, January.
    15. Wang, Sun Ling & Huang, Jikun & Wang, Xiaobing & Tuan, Francis, 2019. "Are China’s regional agricultural productivities converging: How and why?," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    16. Jie Lyu & Xiaolei Li, 2019. "Effectiveness and Sustainability of Grain Price Support Policies in China," Sustainability, MDPI, vol. 11(9), pages 1-13, April.
    17. Rada, Nicholas & Wang, Chenggang & Qin, Lijian, 2015. "Subsidy or market reform? Rethinking China’s farm consolidation strategy," Food Policy, Elsevier, vol. 57(C), pages 93-103.
    18. Gale, Fred & Hansen, James & Jewison, Michael, 2015. "China’s Growing Demand for Agricultural Imports," Economic Information Bulletin 198800, United States Department of Agriculture, Economic Research Service.
    19. Na Lu & Kira M. Villa, 2022. "Agricultural support and contaminated spillovers: The effects of agricultural water pollution on adult health in China," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 788-821, June.
    20. Zhang, Rui & Tian, Qing & Jiang, Luguang & Crooks, Andrew & Qi, Shuhua & Yang, Ruixin, 2018. "Projecting cropping patterns around Poyang lake and prioritizing areas for policy intervention to promote rice: A cellular automata model," Land Use Policy, Elsevier, vol. 74(C), pages 248-260.
    21. Hong, Yu & Berentsen, Paul & Heerink, Nico & Shi, Minjun & van der Werf, Wopke, 2019. "The future of intercropping under growing resource scarcity and declining grain prices - A model analysis based on a case study in Northwest China," Agricultural Systems, Elsevier, vol. 176(C).
    22. Chavas, Jean-Paul & Li, Jian, 2016. "On the Economics of Commodity Price Dynamics and Price Volatility," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235070, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jing You, 2014. "Dietary change, nutrient transition and food security in fast-growing China," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 9, pages 204-245, Edward Elgar Publishing.
    2. Jim Hansen & Francis Tuan & Linxiu Zhang & Agapi Somwaru, 2011. "Do China's agricultural policies matter for world commodity markets?," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(1), pages 6-25, January.
    3. Zou, Baoling & Mishra, Ashok K. & Luo, Biliang, 2020. "Grain subsidy, off-farm labor supply and farmland leasing: Evidence from China," China Economic Review, Elsevier, vol. 62(C).
    4. Tian, Qing & Holland, John H. & Brown, Daniel G., 2016. "Social and economic impacts of subsidy policies on rural development in the Poyang Lake Region, China: Insights from an agent-based model," Agricultural Systems, Elsevier, vol. 148(C), pages 12-27.
    5. Wang, Xiaobing & Yu, Xiaohua, 2011. "Scale Effects, Technical Efficiency and Land Lease in China," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115736, European Association of Agricultural Economists.
    6. Song Yang & Jincai Zhuang & Aifeng Wang & Yancai Zhang, 2019. "Evolutionary Game Analysis of Chinese Food Quality considering Effort Levels," Complexity, Hindawi, vol. 2019, pages 1-13, November.
    7. Huang, Kaixing & Yan, Wenshou & Huang, Jikun, 2020. "Agricultural subsidies retard urbanisation in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(04), January.
    8. Wenting Wang & Longbao Wei, 2021. "Impacts of agricultural price support policy on price variability and welfare: Evidence from China's soybean market," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 3-17, January.
    9. Brockhaus, Jan & Huang, Jikun & Hu, Jiliang & Kalkuhl, Matthias & von Braun, Joachim & Yang, Guolei, 2015. "Rice, wheat, and corn supply response in China," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205988, Agricultural and Applied Economics Association.
    10. Poczta-Wajda, Agnieszka, 2014. "Assistance to Agriculture in Countries of a Different Development Level and Trends in World Trade with Agricultural Products," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2014(6).
    11. Vdovenko, Natalia & Tomilin, Oleksii & Kovalenko, Liubov & Badri, Gechbaia & Konchakovskiy, Eugen, 2022. "Global trends and development prospects of the market of plant protection products," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(2), June.
    12. Qingbin Wang & Robert Parsons & Guangxuan Zhang, 2010. "China's dairy markets: trends, disparities, and implications for trade," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(3), pages 356-371, September.
    13. Shen, Zhiyang & Baležentis, Tomas & Chen, Xueli & Valdmanis, Vivian, 2018. "Green growth and structural change in Chinese agricultural sector during 1997–2014," China Economic Review, Elsevier, vol. 51(C), pages 83-96.
    14. Jikun Huang & Jun Yang & Scott Rozelle, 2013. "The Political Economy of Food Pricing Policy in China," WIDER Working Paper Series wp-2013-038, World Institute for Development Economic Research (UNU-WIDER).
    15. Kleiman-Weiner, Max & Luo, Renfu & Zhang, Linxiu & Shi, Yaojiang & Medina, Alexis & Rozelle, Scott, 2013. "Eggs versus chewable vitamins: Which intervention can increase nutrition and test scores in rural China?," China Economic Review, Elsevier, vol. 24(C), pages 165-176.
    16. Tristan Kenderdine, 2018. "Insurance Plus Futures: Agricultural Commodity Price Reform in China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(2), pages 331-346, May.
    17. Anderson, Kym & Strutt, Anna, 2014. "Food security policy options for China: Lessons from other countries," Food Policy, Elsevier, vol. 49(P1), pages 50-58.
    18. Deininger,Klaus W. & Jin,Songqing & Liu,Shouying & Xia,Fang, 2015. "Impact of property rights reform to support China?s rural-urban integration : household-level evidence from the Chengdu national experiment," Policy Research Working Paper Series 7388, The World Bank.
    19. Heerman, Kari E.R. & Arita, Shawn & Gopinath, Munisamy, 2015. "Asia-Pacific Integration with China vs. the United States: Examining trade patterns under heterogeneous agricultural sectors," 2015 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2015, Boston, Massachusetts 189819, Agricultural and Applied Economics Association.
    20. Ahn, Jae-Wan & Rhodes, M Taylor, 2021. "Examining Pathogen-Based Import Refusals: Trends and Analysis From 2002 to 2019," Economic Information Bulletin 327360, United States Department of Agriculture, Economic Research Service.

    More about this item

    Keywords

    Agricultural and Food Policy; International Development; International Relations/Trade;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersrr:155385. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.