1. Main content of policy In 2012, the central finances continued increasing agricultural subsidies substantially through allocating 1 238.76 billion yuan for agriculture, rural areas and farmers，livelihood, increased 189 billion yuan and up 18 percent from the previous year. Following was main content of policy,

1) The "Four Subsidies"，were enlarged continuously. The "Four Subsidies" for agriculture reached 166.8 billion yuan, up 26.2 billion yuan compared with 2011. Of the four subsidies, direct subsidies for grain production were 15.1 billion yuan, the same level with the previous year; comprehensive subsidies for goods used in agricultural production were 107.8 billion yuan, up 24.3 billion yuan; and subsidies for fine seeds reached 22.4 billion yuan, up 400 million yuan from the previous year.

Subsidies for such major crops as rice, wheat, corn and cotton had become available across the country; those for soybeans and highland barley were available across the main producing areas; and those for rape were available across the main winter-rape producing areas in the Yangtze River Basin.

Fine seeds subsidies for peanuts focused on the concentrated production areas along the coast of the Yellow Sea, but also duly covered other main producing areas, including 12 provinces (autonomous regions and municipalities). The subsidization of potato seed production continued in 17 main producing provinces (autonomous regions and municipalities).

Subsidies for the purchase of agricultural machinery and tools amounted to 21.5 billion yuan, up 4 billion yuan from the previous year. The coverage was further expanded to include more types of machines and tools, and pilot programs to subsidize scrapping and upgrading were launched in 11 provinces. Their implementation was characterized by early startup, real measures, fast work and remarkable effects.

Competent departments for agricultural mechanization and financial sectors at various levels improved their management further, and carried forward innovation in developing new ways to manage subsidies. Pilot programs on the policies of “full-price purchase, county-level settlement” and of full coverage of key machines and tools were also under way in 17 provinces in order to strengthen supervision and inspections and ensure implementation of those policies.

2) The subsidy for key agricultural technologies in disaster prevention and relief as well as production stabilization and promotion was launched all round. A subsidy of 6.3 billion yuan was allocated to fund the overall implementation of “control pest and enhance resistance by one spray”. Rice seedling cultivation in greenhouses was subsidized in the Northeast; collective early-season rice seedling cultivation was subsidized in main early-season rice producing areas in the South; the subsidy for “furrow-irrigated planting” for drought resistance was launched in the Northeast; the subsidy for plastic-film mulch farming of corn was implemented in the Southwest; the subsidy for full plastic-film mulch, trench sowing and under-mulch drip irrigation was popularized in the Northwest; unified and specialized prevention and control of crop diseases and pests was subsidized in main grain producing areas.

3) The policy of subsidies and rewards for grassland ecological protection was implemented all round. The central finances set aside 15.06 billion yuan for subsidies and rewards for grassland ecological protection, with the coverage expanded from eight provinces (autonomous regions) of Inner Mongolia, Xinjiang, Gansu, Qinghai, Tibet, Sichuan, Ningxia and Yunnan as well as in the Xinjiang Production and Construction Corps to five provinces of Hebei, Shanxi, Liaoning, Jilin, Heilongjiang, including 36 pastoral and semi-pastoral counties.

In addition, the central finances allocated 1.2 billion yuan to subsidize fine breeds of live pig, dairy cattle, beef cattle and sheep, 4.29 billion yuan to fund the prevention of major animal diseases, including subsidy for vaccines against major animal diseases, compulsive cull, innocent treatment of infected and dead pigs, and grassroots-level work of prevention of animal diseases, and 2.85 billion yuan for breeding of fertile sows. 24 billion yuan was allocated to subsidize diesel oil for fishing vessels, including vessels used to catch or culture fish inshore and inland, ocean fishing vessels, and fishing vessels from Hong Kong and Macau. The policy of subsidizing the agricultural insurance premium was implemented continuously.

2. Evaluation of Policies' Effects Enormous political, economic and social effects have resulted from over 10 years' implementation of the agricultural subsidy.

1) Worker-farmer and urban-rural relations were improved to promote a stable and harmonious society. The CPC Central Committee's key decisions on agriculture, rural areas and farmers, livelihood, including "giving more, taking less and loosening control" and "encouraging industry to support agriculture in return and encouraging cities to support rural areas" were thoroughly carried out through the launch and implementation of agricultural subsidies. A historic transformation of the government^ role as to farmers from a taker to a giver was made; an overall transition to the policy of supporting and protecting the agriculture at the medium stage of industrialization began. Abolishment of the agricultural tax and direct subsidy for farmers was advocated warmly by farmers and greatly improved the relation between cadres and people and the relation between the party and the masses. A strong impetus was given to the work of building a well-off society.

2) Farmers，enthusiasm for production was aroused to ensure the growth of grain output for the ninth consecutive year. The agricultural subsidy not only signaled the state's strong will of ensuring the national food security but also protected grain-producing farmers' economic benefits. It greatly promoted farmers' initiative and enthusiasm for grain production. The policy of subsidizing key technologies in disaster prevention and relief as well as production stabilization and promotion was launched all around, which made up for the deficiency of the allowance for technical applications. It greatly quickened the popularization of technologies for boosting production and played an important role in promoting the implementation of measures for disaster prevention and relief and increasing the per-hectare grain output.

3) Ways to increase farmers 5 income were broadened and a nine-year streak of rapid increase of farmers' earnings was realized. Since 2004， Farmer's income from transfer payments has being rising year by year. In 2011, the “Four Subsidies" for agriculture in the income from transfer payments account for 3 percent of the average per capita net income of rural residents, up from 0.7 percent in 2004，and appeared as a highlight in the increase of farmers，earnings. In particular, three direct subsidies for grains were equal to 22 percent of the per-hectare income and played a remarkable role in increasing the income of grain-producing farmers. The rewards and subsidies for grassland ecological preservation and the fishery diesel subsidies were of much importance for increasing herdsmen and fishermen's income. As of 2011，the central budget had allocated a total of 26.4 billion yuan to subsidize the insurance premium and provided a risk guarantee amounting to 1.78 trillion yuan for 560 million times of rural households. Losses caused by various disasters were mitigated effectively.

4) Development of agricultural science and technology was promoted and application of modern agricultural science and technology and the level of modern agricultural mechanization were improved. Subsidies for fine seeds, purchase of agricultural machinery and tools, and key technologies promoted combination and popularization of fine seeds with good farming methods and farm machinery with agronomy. Advancement in agricultural science and technology and improvement of agricultural equipment were greatly accelerated. In 2012, fine crop seeds were introduced in more than 96 percent of farmland in China; the contribution of agricultural technological advancements reached 54.5 percent, up 12.2 percent from the year of 2002; the nationwide aggregate level of mechanization in plowing, sowing and harvesting reached 57 percent, up 24.5 percent from the year of 2002. Meanwhile, with support from subsidy, more than 30 million person-times of training were provided to farmers.

5) The policy of compensation for ecological losses was broken and an effective way to protect and rationally use agricultural ecology and resources was explored. Over the past 10 years, achievements have been consolidated and expanded continuously in retiring fragile land from farming and switch it to afforestation and retiring natural grassland from grazing and return it to grass. Ecological, economic and social benefits were integrated with remarkable effects. As a historical breakthrough of the national policy to support subsidies for grassland and herdsmen, the overall implementation of rewards and subsidies for grassland ecological preservation opened a new chapter in protection and application of agricultural ecology and resources.