Firstly, the evolution process of grain subsidy policy in China was introduced. In the first stage, the nation carried out grain policy of unified purchase and sale. In the second stage, the nation carried out price subsidy for grain purchasing. In the third stage, the nation cartied out direct subsidy for grain production. Secondly ,the incentive mechanism of grain subsidy was analyzed under two conditions based on the basic hypotheses. Under the condition of complete information, the effects of grain subsidy policy are optimal. Under the cond...
