The "three subsidies" are inclined to the moderate scale operation of grain.

The Ministry of Finance and the Ministry of Agriculture have decided to adjust and improve three subsidy policies (hereinafter referred to as agricultural "three subsidies"), including subsidies for improved varieties of crops, direct subsidies for grain farmers and comprehensive subsidies for agricultural materials from 2015.

In order to actively and steadily promote this work, the Ministry of Finance and the Ministry of Agriculture proposed to adjust 20% of the comprehensive agricultural subsidy funds nationwide to support the appropriate scale operation of grain, select some areas to carry out pilot reforms of the "three subsidies" in agriculture, and earnestly do a good job in adjusting and improving the agricultural "three subsidies" policy and other guidance.

Since 2004, the state has successively implemented the agricultural "three subsidies" policy, which has played a positive role in promoting grain production, increasing farmers' income and promoting agricultural and rural development. However, with the profound changes in the situation of agricultural and rural development, the effect of the agricultural "three subsidies" policy is decreasing, and the policy efficiency is gradually decreasing, which urgently needs to be adjusted and improved.

Adjusting and perfecting the agricultural "three subsidies" policy is an urgent need to change the mode of agricultural development, to improve the effectiveness of agricultural subsidy policy, and to help our country follow the rules of the World Trade Organization. Further through the "green box policy" measures to increase support for agriculture and rural areas.

The purpose of this adjustment and improvement is to improve the directivity, accuracy and effectiveness of the policy, improve the effectiveness of the policy, and promote the transformation of the mode of agricultural development and the appropriate scale operation of grain on the premise that the state's overall support to farmers is not reduced. We will promote the sustainable development of agriculture and improve agricultural productivity and market competitiveness of agricultural products. The principles that need to be followed are: effectively protect the basic interests of farmers; strengthen support for appropriate scale operation of grain; effectively promote the sustainable development of agriculture; and maintain the continuity and stability of subsidy policies.

The main contents of this adjustment and improvement are divided into two aspects: one is to adjust 20% of the comprehensive agricultural subsidy funds nationwide to support the appropriate scale operation of grain; the second is to select some areas to carry out pilot agricultural "three subsidies" reform.

In terms of supporting the moderate scale operation of grain, according to the decline in the prices of agricultural means of production, provinces, autonomous regions, municipalities directly under the Central Government and cities separately listed on the State plan will adjust 20% of the comprehensive subsidies for agricultural materials issued by the central financial arrangements. in addition, pilot funds for subsidies to large grain growers and incremental funds for the "three subsidies" in agriculture are used to support appropriate scale operation of grain as a whole. The support targets are moderate-scale producers and operators of major food crops, with emphasis on new types of operators such as large grain growers, family farms, farmers' cooperatives, agricultural socialized service organizations, and so on.

There are many forms of moderate scale operation of grain, including not only the moderate scale operation of land formed by orderly land circulation, but also the moderate scale operation of grain through stock cooperation, association, order agriculture and social service provision. Therefore, all localities should adopt positive and effective support methods to promote the appropriate scale operation of grain.

First, we will focus on supporting the establishment and improvement of the agricultural credit guarantee system. Through the way of agricultural credit guarantee, we can provide credit guarantee for the loans of grain operators of moderate scale, and strive to solve the problem of "difficult financing" and "expensive financing" of the new operators in the moderate scale operation of grain. The subsidy funds for supporting the moderate scale operation of grain are mainly used to support various localities, especially the major grain producing provinces, to establish an agricultural credit guarantee system, to promote the formation of a national agricultural credit guarantee system, to gradually build an agricultural credit guarantee network covering major grain producing areas and major agricultural counties, to strengthen the bank-load cooperation mechanism, and to support the appropriate scale operation of grain.

Second, we can also support the appropriate scale operation of grain by means of discounted interest on loans, direct cash subsidy, major technology popularization and service subsidies. The loan interest of the appropriate scale operators of grain may also be appropriately subsidized (no more than 50% of the loan interest). Direct cash subsidy can also be adopted, but it should be linked to the planting area of major food crops or the area of technical extension services, and single-household subsidies should set a reasonable upper limit on the scale of subsidies to prevent "large households". It is also possible to provide major technology promotion and service subsidies for appropriate scale operation of grain by means of "service first and then subsidy" and providing materialization subsidy.

In 2015, the Ministry of Finance and the Ministry of Agriculture selected five provinces, including Anhui, Shandong, Hunan, Sichuan and Zhejiang, to carry out pilot agricultural "three subsidies" reform. The main content of the pilot project is to merge the "three agricultural subsidies" into "agricultural support and protection subsidies", and the policy objective is adjusted to support the protection of cultivated land and the appropriate scale operation of grain.

Among them, 80% of the stock of comprehensive agricultural subsidies, plus direct subsidies for grain farmers and subsidies for improved varieties of crops, are used for the protection of cultivated land. In 2016, the reform of the "three subsidies" in agriculture will be carried out nationwide on the basis of summing up pilot experience and further improving policies and measures.

The adjustment and improvement of the agricultural "three subsidies" policy is related to the interests of the broad masses of farmers and the overall situation of agricultural and rural development, as well as the overall situation of national food security and agricultural sustainable development. In terms of specific organization and implementation, the Ministry of Finance and the Ministry of Agriculture require all localities to earnestly strengthen organizational leadership; conscientiously formulate specific implementation plans; pay close attention to the implementation of the policy of "three subsidies" in agriculture; earnestly strengthen supervision over the distribution and use of funds for the "three subsidies" in agriculture; closely follow the progress of work; and do a good job in policy propaganda and interpretation.