Efficiency Evaluation of Grain Direct Subsidy Based on DEA

Grain direct subsidy is the core of agricultural subsidy policy, which plays a significant guiding role in ensuring grain security and raising farmers' income.This paper first analyzes the theoretical and realistic basis of grain direct subsidy from a multidimensional perspective: ensuring grain safety, regulating income distribution and compensating for opportunity cost of agricultural production factors.Then it tests the effectiveness of the whole conduction mechanism based on regression analysis of cross section data.Next, it measures the efficiency of the grain direct subsidy of 29 provinces in 2004 and that of 23 provinces in 2005 with DEA (data envelopment analysis).It concludes that the main reason for low efficiency of grain direct subsidy is technological inefficiency.