The central government supports moderate scale operation of grain.

Recently, the Ministry of Finance and the Ministry of Agriculture allocated 143.4 billion yuan for comprehensive subsidies for agricultural materials, direct subsidies for grain farmers and subsidies for improved varieties of crops. At the same time, on the basis of extensively soliciting and listening to the opinions of all parties, the Ministry of Finance and the Ministry of Agriculture will carry out adjustment and improvement of agricultural subsidy policies and pilot implementation with the approval of the State Council. This year, some cities and counties in five provinces, including Anhui, Shandong, Sichuan, Hunan and Zhejiang, will be selected to carry out pilot reforms of three agricultural subsidies.

The Ministry of Agriculture and the Ministry of Finance require all provinces (autonomous regions, municipalities directly under the Central Government, and cities separately listed on the State plan) to adjust 20% of the funds allocated by the central government for comprehensive subsidies for agricultural materials, plus pilot funds for large grain growers and incremental funds for subsidies, as a whole, it is used to support the appropriate scale operation of grain. Emphasis will be placed on new business entities such as large grain growers, family farms, farmers' specialized cooperatives, and agricultural socialized service organizations. The two ministries and commissions also require that all localities should adopt effective ways such as agricultural credit guarantee, discount, direct cash subsidy, and major agricultural technology extension subsidies in accordance with local conditions, to support new operators to solve the problem of financing difficulties and expensive financing in grain moderate scale operation, to improve the level of intensification and socialization of grain production, and to change the development mode of grain production.