Abstract:

To stimulate farmers’ initiatives effectively and to make sure that people get the same amount of wage for doing the same kind of work, a criterion of direct subsidies is provided here on the basis of lots of field work. Calculation and analysis of the typical areas of Hunan Province based on the production cost, cost of sales and government subsidies show that in terms of production cost of early, middle and late rice, there are obvious differences in types and areas. Differences among areas are especially noticeable. The highest daily wage of some areas, though fails to reach the standard wage set by the market, is 2.6 times than that of other areas, which are at the bottom. Therefore, to make sure that people in different areas get the same amount of wage for doing the same kind of work, it is quite necessary to implement the differentiated subsidy policy. And at this stage, in order to narrow the financial gap among farmers and to stimulate farmers' initiatives, this program plans to divide Hunan Province into four districts of various production-cost gradients, implementing the differentiated subsidy policy.