Aimed at examining the impacts of food price subsidy policy and food direct subsidy policy to the income and employment of the residents and the national economy, this paper builds agricultural subsidies computable general equilibrium (CGE) model. The results show that, both of the food price subsidy policy and direct subsidy policy have little role to improve farmers’ income. The meaning of implementing the policy of agricultural subsidies reflected more in showing the country’s strong determination to solve the “three rural” issues, stimulating farmers’ enthusiasm for growing grain, and ensuring national food security. As for improving farmers’ income, this policy cannot reach these purposes. So, we believe that in order to improve farmers’ income, building the “farmer-government-market” trinity long-term linkage mechanism in the process of urban-rural integration is needed, that is based on the market-mechanisms, mobilizing endogenous core strength of the rural economy, as well as the government policy. All of these would have significant role in balancing development of China's economic by expanding domestic demand.

Fan Xiaojing. Have agricultural subsidy policies raised the incomes of rural and urban residents?. Academic Journal of Business & Management (2024) Vol. 6, Issue 8: 1-11. https://doi.org/10.25236/AJBM.2024.060801.

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