The reconciliation between grain security and farmers´ income rise against the background of grain subsidies policy in China

Recent years have witnessed China´s fundamental adjustment of its subsidizing policies on grain supplies to ensure two goals, namely, security of grain supplies and income rise of farmers, due to its emphasis on the ldquoThree Rural Issuesrdquo concerning agriculture, farmers and the countryside, and the global crisis of grain shortage. However, there have long existed contradictions between the two goals as can be seen from the definition of security of grain supplies and features of the grain production industry. Taking the opportunity cost and farmers´ interests of farming into account, it´s essential to clarify their relationship and put farmers´ income rise on the top agenda so as to make both ends meet. After a Game-Theory-based analysis, it´s revealed that the subsidizing policy on grain supplies, namely direct grain-growing grants to farmers enacted by the Chinese Government has played a major role in reconciling both goals.