By Cheng Yu & Zhou Qunli, Research Department of Rural Economy, DRC, Peng Chao, Research Center of Rural Economy, Ministry of Agriculture, & Yang Qin, Planning and Design Institute, Ministry of Agriculture

Research Report No. 179, 2016 (Total 5062) 2016-12-16

Abstract: The subsidy policy for primary processing of agricultural products in growing areas is a targeted measure for solving the problem that restricts the transformation and upgrading of agriculture as well as farmers' income growth. Over the past four years, the implementation of this policy measure has effectively helped the farmers’ to sell their agricultural products at a proper time in the market so as to reduce their losses from the sale of their products, improved the quality of processed products, and promoted the integration of primary, secondary and tertiary industries through scale operation. This policy has met the urgent demand of agricultural producers and played a significant role in driving industrial development, but it is facing some problems, such as limited policy coverage, insufficient supporting measures of coordinated policies, and inadequate industrial supporting services, which have greatly weakened the effectiveness of the policy. It is suggested that the government should take the policy of agricultural products’ primary processing of agricultural products in the growing areas as the guideline for the transformation of agricultural support policies, expand the scope and intensity of the policy implementation, strengthen the collaborative supporting mechanism of relevant policies, and flesh out the supporting market service system.

Key words: primary processing of agricultural products, subsidy policy, farmers' income growth, industrial integration