To effectively protect the interests of farmers, mobilizing the enthusiasm of farmers, according to the requirements of the State Department, Jilin provincial government decided to provide food subsidies in the form Dongfeng reform. At this point, Jilin Province, "direct subsidy pilot" has been officially launched.
Grain subsidy reform pilot is on "was lifted, two open, one lock, one to adjust." Lifted, is by removing the surplus grain farmers of price policy; 2 release is the opening price of grain, up open grain purchase and sales markets; a lock is locked the old stock, old losses are; an adjustment is the adjustment of food subsidies in circulation for direct subsidies to farmers. State grain procurement enterprises and other food operators fair access to markets, follow the market, at market purchase surplus grain farmers, grain purchase and sales markets to achieve diversification of business entities.
The subsidies range of experimental maize, rice, two of the protected variety, east of Fengxian County in 1994 and 1998 5-year average yield of two varieties of the base, in accordance with the maize, rice, two varieties of goods to protect 70% of the amount of subsidies approved conversion ratio Goods traffic; allowances listed under focus this year is expected to market the new food prices and the level of protection of the price spread measure, defined as kilograms of grain subsidies to 0.045 yuan. Way of subsidies in accordance with the established variety and scope of subsidies, the amount of goods will be subsidized by the provincial approval to the county, and then approved by the county level by level to the township and village, the village approved the home from the reality.
Way of food subsidy reform is a necessary deepening of the grain distribution system. Over the years, the main producing areas in the protection of national interests took a lot of subsidies to farmers, but fill in the circulation, increased food business to a large extent dependent on the policies, leading enterprises have received food through loans, subsidies stored , losses are losses on the phenomenon. Direct subsidies to farmers, and fundamentally changed the company's commitment to protect farmers from the grain of responsibility, the responsibility to protect farmers reverted to the Government, to the food business minus the stress and the responsibility to protect farmers rely on the heavy burden of the policy, complete the enterprise push to the market, grain subsidy reform is to protect and mobilize the enthusiasm of farmers and effective way. In the past, the State to protect the interests of farmers, through subsidies circulation to protect the price in the form of indirect increase their income. As the cost of large circulation, loss of interest among many, resulted in the efficient protection of farmers. According to OECD estimates, subsidies to protect farmers through the circulation of only about 25% efficiency, and also because of the increase in grain stocks increased financial burden. Therefore, significant changes in food supply and demand, the market situation continued low grain prices, the state raised the idea of direct subsidies to farmers, can effectively prevent the loss of intermediate interests, so that farmers benefit directly.