Wang Xingang Siwei: Has the Reform of Soybean Subsidy Policy Achieve Soybean Expansion? -- Based on the Empirical Study of 124 Prefecture-level Cities in Main Soybean Producing Areas

Has the Reform of Soybean Subsidy Policy Achieve Soybean Expansion? -- An Empirical Study of 124 Prefecture-level Cities in Major Soybean Producing Areas

wang Xingang Si Wei

abstract: The experience and effect of soybean subsidy policy reform have important reference value for exploring the direction of subsidy policy reform for rice, wheat and other crops. To this end, based on the panel data at the level of the main soybean production area in China, this paper uses the double differential model to examine in detail the impact of the soybean producer subsidy policy introduced in 2017 on soybean production. The results show that the implementation of the producer subsidy policy has achieved the policy goal of expanding the sown area of soybean, but it also caused the decline of production factor input. From the perspective of the time process of the reform, in the first year of the reform, the changes in soybean production more reflected the impact of the cancellation of soybean target price subsidies rather than the actual effect of soybean producer subsidies, so there was a decrease in soybean sown area, area share and unit area input; however, the expansion effect of producer subsidies in the second and third years was gradually highlighted, and the soybean sown area was increasing year by year. Regional heterogeneity analysis shows that producer subsidies have different effects on soybean production in different provinces and accumulated temperate zones. Heilongjiang Province and the eastern four league cities of Inner Mongolia Autonomous Region are more sensitive to producer subsidies, and subsidies have the most significant incentive effect on soybean cultivation in the second, third and fifth accumulated temperate zones of these two provinces.