1. Introduction
Food security is a “national priority” [
1]. The continuous improvement and diversity of grain production are not only an important measure to ensure China’s food security but also an important means to ensure global food security [
2]. According to the latest data from the World Bank, China will produce more than 632 million tons of grain in 2021, maintaining first place in the global grain production ranking for ten consecutive years. According to the data of China Statistical Yearbook 2023, China’s per capita grain consumption in 2021 exceeded 480 kg, far higher than the Food and Agriculture Organization of the United Nations proposed “400 kg per capita grain consumption” food security warning line. Although China’s grain output has been increasing year annually, the supply and demand of feed grain have been in a tight balance for a long time, so it is urgent to ensure the security of feed grain [
3].
Effective protection of the security of feed grain plays a key role in achieving high-quality economic and social development, especially in stabilizing prices and ensuring people’s livelihoods [
4]. The 2022 China and Global Food Policy Report found that the eating habits of Chinese residents are quietly changing, and the trend of balanced and diversified food structure is obvious. The main performance is that the demand for rations continues to decline, and the demand for feed grain is increasing [
3]. Therefore, it is urgent to improve the supply of feed grain and ensure its security.
However, China’s domestic feed grain supply growth is slow, with long-term dependence on imports to maintain feed grain security [
5]. According to the data of the “China Feed Industry Yearbook 2020”, the average annual growth rate of China’s domestic feed grain output from 2014 to 2019 was 2.96%, and it is noteworthy that the growth rate of domestic feed grain output in 2019 changed from positive to negative growth for the first time. At the same time, statistics from the General Administration of Customs of China show that the import amount of soybeans and corn, China’s main feed grain, continued to increase in 2023, with 99.41 million tons of soybeans and 27.13 million tons of corn imported, accounting for 78% of the total grain imports. Therefore, China’s food security problems mainly appear in domestic feed grain production, among which soybeans and corn are the key [
6]. Therefore, this paper mainly focuses on the study of feed grain yield changes in various provinces in China. First, the feed grain trade among various provinces is easily subject to the macro-control of the central government. Second, the international trade in feed grain is vulnerable to the impact of the international environment, especially the impact of major emergencies such as the COVID-19 pandemic and the Russia–Ukraine war.
The study of food security from the perspective of feed grain yield coincides with the concept of the “Big Food Perspective”. “Big Food Perspective” is one of the important concepts that ensure food security in the world [
7]. The “Big Food Perspective” refers to the formation of a wide range, variety, and nutritious food concepts [
8]. In terms of food security, the “Big Food Perspective” refers to ensuring the quantity security, structural security, and nutritional security of food, of which the security of grain planting structure is particularly important [
9]. Combined with the current situation of China’s high grain output and low feed grain output, the “Big Food Perspective” requires optimizing China’s grain planting structure, increasing the output of feed grain, and ensuring the security of feed grain. It is the establishment of the “Big Food Perspective” that has changed the traditional food security concept of the Chinese government “taking rations as the key link” and prompted the Chinese government to pay more attention to ensuring the security of feed grain [
10]. Therefore, there is a very close relationship between the “Big Food Perspective” and the research content of this paper. The establishment of the “Big Food Perspective” promoted the in-depth implementation of the “grain-to-feed” policy and improved the output of feed grain, which provided a new perspective and practical support for this paper to study the impact of “grain-to-feed” policy on the output of feed grain.
Under the guidance of the “Big Food Perspective,” the Chinese government has issued a series of policies to ensure the security of feed grain, and the “grain-to-feed” policy is one of them. Since 2017, China’s ration output has increased annually. Although ration security has been effectively guaranteed, problems such as contradictions in grain planting structure have become increasingly prominent, especially in the planting area, and the yield of corn and soybeans urgently needs to be optimized and adjusted. To this end, under the guidance of the “Big Food Perspective,” the Ministry of Agriculture and Rural Affairs of China fully implemented the “grain-to-feed” policy in 17 provinces in 2017. Its policy aim is to optimize the grain planting structure, increase the output of feed grain, and ensure the security of feed grain. In terms of policy content, taking silaged corn as an example, the policy of “grain-to-feed” requires subsidies according to the actual storage capacity of silaged corn, and the subsidy for each ton of silaged corn is about CNY 60. So the implementation of the “grain-to-feed” policy has not only greatly increased the planting area and output of feed grain but also effectively promoted an increase in farmers’ income.
However, in the process of implementing the “grain-to-feed” policy, many thorny problems have also been encountered, which is not conducive to the realization of the policy purpose. First, the “grain-to-feed” policy has high requirements for agricultural machinery and equipment, and corn as a feed grain must be harvested with large special machinery and equipment, which increases the planting cost of farmers. Second, the “grain change to feed” policy has higher requirements for agricultural technology, and the production of feed grain corn must rely on scientific production technology, such as the fermentation technology of silage corn, which ordinary farmers find difficult to master. Therefore, whether the “grain-to-feed” policy can achieve the expected policy objectives still needs scientific empirical testing. Furthermore, China’s neighboring provinces are closely connected in space, and the impact of the “grain-to-feed” policy on the spatial adjacent areas is also worthy of further exploration. Therefore, can the “grain-to-feed” policy have a significant impact on the output of feed grain in the pilot areas? How big is the policy impact? Can the “grain-to-feed” policy have a significant impact on the output of feed grain in adjacent areas? Do the policy effects differ significantly depending on the types of neighboring areas? Next, this study launches a more detailed and in-depth exploration of the above issues.
Compared with previous studies, this study may provide some marginal contributions in the following aspects. First, it fills the gap in existing research to some extent. Few of the previous studies directly discussed the implementation effect of the “grain-to-feed” policy; in particular, there is a certain research gap in the empirical analysis of the implementation effect of the “grain-to-feed” policy. The research in this paper has filled the gap of empirical analysis of the effect of the “grain-to-feed” policy on feed grain output to a certain extent, which is of great significance. Second, it expands a new research perspective. From the “Big Food Perspective”, this paper reveals the direct and indirect effects of the “grain-to-feed” policy on the local and neighboring areas, which provides a new research perspective for the existing research. Third, it enriches the research content. This study not only established a comprehensive theoretical analysis framework of the “grain-to-feed” policy but also used the spatial differential method to accurately estimate the size of the effect of the “grain-to-feed” policy on the feed grain output in local and neighboring areas and even decomposed the spatial effect to accurately capture the difference of the spatial effect. Fourth, it provides new empirical evidence. Compared with the country panel data used in previous studies, this study uses the provincial panel data of the latest year as the research object, which is not only updated in time but also has a finer granularity.
3. Theoretical Analysis
3.1. Research Hypothesis
The “grain-to-feed” policy aims to increase the production of feed grain by enhancing farmers’ production enthusiasm and leveraging economies of scale. On the one hand, this policy can reduce farmers’ planting costs, increase their income, boost their enthusiasm for growing feed grain, and expand the planting area and supply of feed grain [
38]. On the other hand, the policy facilitates the integrated development of planting and breeding industries, optimizes the agricultural industry structure, and creates economies of scale, which both reduces the cost of feed grain and increases its demand [
39].
In terms of boosting farmers’ production enthusiasm, compared to ration grain, feed grain has a higher yield per acre and simpler production processes, which can significantly reduce farmers’ planting costs and increase their income, thereby enhancing their production enthusiasm. For instance, the average yield per acre of silage corn is 2.9 tons, with an average purchase price of CNY 365 per ton, leading to an income of CNY 1058.5 per acre. In contrast, the average yield per acre of grain corn is 538 kg, with an average purchase price of CNY 1320 per ton, resulting in an income of CNY 710.2 per acre. Thus, compared to traditional ration crops, planting feed grain provides a higher yield per acre and increases income by CNY 348.3 per acre, greatly enhancing farmers’ production enthusiasm. Additionally, silage corn eliminates the need for harvesting, threshing, and drying, reducing the opportunity cost for farmers, increasing their chances and income from non-farming work, and further boosting their enthusiasm for planting feed grain. The increased enthusiasm for production helps to expand the planting area of feed grain and increase its production.
Regarding the economies of scale in agriculture, the “grain-to-feed” policy promotes the deep integration of planting and breeding industries, achieving integrated production, expanding agricultural production scale, and leveraging economies of scale. According to the theory of industrial integration, the integration of upstream and downstream industries in the same industrial chain can not only reduce the production costs of each individual industry through economies of scale but also effectively improve the quality and demand for each industry’s products through supply–demand alignment. The realization of agricultural economies of scale reduces the cost of feed grain, increases its demand, and indirectly boosts its production. Based on this, the theoretical hypothesis of this paper is as follows:
H1. The implementation of the “grain-to-feed” policy can effectively increase the production of feed grain in pilot areas.
China is vast, with significant differences in natural resource endowments and economic development levels across regions. This results in the “grain-to-feed” policy having varying spatial effects in different areas, exhibiting clear spatial heterogeneity.
Regarding natural resource endowments, there are considerable differences in arable land quality, topography, and climate conditions across China’s regions, leading to distinct spatial heterogeneity in the policy’s implementation. For instance, the climate in the Northwest region of China is arid, the terrain is at a higher altitude, and the quality of arable land is lower, limiting the capacity for ration grain production and making it more suitable for feed grain crops. Consequently, the spatial driving effect of the “grain-to-feed” policy may be relatively better in these areas.
Regarding economic development levels, there are significant disparities in industrial development levels and farmers’ income levels across China, leading to distinct spatial heterogeneity in the policy’s implementation. For example, in the southeastern coastal areas of China, the level of non-agricultural industry development is higher, farmers’ non-agricultural income levels are higher, and their willingness to engage in agricultural production is lower. Therefore, the spatial driving effect of the “grain-to-feed” policy is poorer in these areas.
In summary, the significant differences in arable land quality, topography, climate conditions, economic development levels, and farmers’ income levels across China’s regions result in distinct spatial driving effects of the “grain-to-feed” policy, leading to spatial heterogeneity. Based on this, the theoretical hypothesis of this paper is as follows:
H2. There is significant spatial heterogeneity in the implementation of the “grain-to-feed” policy.
3.2. Impact Pathways
The production of feed grain is inseparable from the input and allocation of production factors such as agricultural inputs, land, labor, and technology. The in-depth implementation of the "grain to feed" policy will greatly increase the input of various production factors, drive the sustained growth of feed grain output, and ensure the safety of feed grain.
Figure 1 depicts the influence path of the "grain to feed" policy to improve the output of feed grain.
The implementation of the “grain-to-feed” policy has driven more agricultural inputs into the production of feed grain. This policy not only enhances the mechanization level of feed crop cultivation but also optimizes the genetic resources of feed grain. Feed crops require a high level of mechanization, and the “grain-to-feed” policy provides special subsidies for the purchase of agricultural machinery for feed crops. Additionally, it actively explores the introduction of financial leasing and financing leasing to support pilot areas in improving the modern equipment capabilities for feed grain production, thereby increasing the mechanization level of feed crop cultivation and boosting feed grain production.
At the same time, the “grain-to-feed” policy promotes the cultivation of special varieties such as silage corn and high-yield, high-quality feed grain varieties, further increasing feed grain production.
The implementation of the “grain-to-feed” policy has not only improved land quality but also enhanced the utilization efficiency of land resources. Feed grain, such as alfalfa, helps with soil nitrogen fixation. Planting feed grain can improve the land quality of medium- and low-yield fields, increasing soil organic matter content by about 20%. This improvement in land quality is also beneficial for the subsequent increase in feed grain production. Compared to ration grain, feed grain requires fewer production processes and has shorter production cycles. This allows for more inter-cropping with other crops, thereby improving land utilization efficiency and increasing feed grain production.
The implementation of the “grain-to-feed” policy helps improve farmers’ grain cultivation techniques and increases their human capital. On the one hand, the policy supports agricultural technicians in visiting villages and providing on-site guidance on corn silage techniques. On the other hand, it encourages agricultural training institutions to offer free feed crop cultivation training to farmers. This enhances farmers’ technical skills in growing feed crops, increases their human capital, and ultimately boosts feed grain production.
The “grain-to-feed” policy has promoted the investment of more technological elements. To address the technical shortcomings in feed crop cultivation, the policy provides special financial support for research on technologies such as biological fermentation feed preparation, grass–livestock energy (fertilizer) cycling, and grass–livestock efficient coupling. This support has effectively increased feed grain production.
5. Results
5.1. Empirical Models
As there is a spatial correlation in the production behavior of feed grain among different provinces, the production of feed grain in a province is not only affected by its own “grain-to-feed” policy. However, it may also be affected by the implementation of the “grain-to-feed” policy in spatially related provinces. In particular, the spatial interactions between the implementation behaviors of the grain-to-feed policy in this province and other provinces reflect the spatial spillover effect of the grain-to-feed policy. To assess this effect accurately, the following spatial double-difference econometric model was constructed:
In the above equation, the denotes the total amount of feed grain production in province i in period t. denotes whether province i is a pilot area of the “grain-to-fodder” policy in period t. denotes the vector set of control variables, including the ratio of urban and rural residents per capita consumption expenditures and the proportion of agricultural production, ; the share of agricultural production, ; the crop sown area (log), ; the level of fiscal revenue, ; the urbanization level, ; the population growth rate, ; and the talent ratio, . denotes individual fixed effects, denotes time-point fixed effects, and denotes random disturbance term. , and are the spatial lag coefficients. , and , and represents the spatial lag effect.
5.2. Model Testing
A parallel trend test was performed before the spatial correlation test to ensure that the use of the spatial double-difference method was justified.
Figure 2 shows a parallel trend plot obtained using the ordinary double-difference method. The results show that, except for 2014, the parallel trend hypothesis is satisfied in the pilot and non-pilot areas of the “grain-to-feed” policy from 2005 to 2016. The reason for the anomaly in 2014 is that the state temporarily increased the minimum purchase price in the main grain-producing areas in 2014, and the pilot areas of the “grain-to-feed” policy happened to be among them. The state canceled the temporary corn storage policy in 2015, which led to a return to parallel feed grain production in the main grain-producing regions and other regions after 2015.
5.3. Empirical Results
In this study, the inverse geographic distance matrix is first chosen for the empirical analysis. Hausman test results show that the chi2 value of the spatial lag model (SAR) is 79.47 with a
p-value of 0.0001, and the chi2 value of the spatial Durbin model (SDM) is 29.78 with a
p-value of 0.028. Therefore, regardless of the spatial empirical model adopted for the estimation, the fixed-effects model estimates that efficiency is better than the random effects. Under fixed effects analysis, the LR test results show that the spatial Durbin model (SDM) cannot be transformed into a spatial lag model (SAR) or spatial error model (SEM). The chi2 value for determining whether SDM could be transformed into SAR was 38.04, with a
p-value of 0.0001, and the chi2 value for determining whether SDM could be transformed into SEM was 39.12, with a
p-value of 0.0001. The test of the joint significance of the spatial coefficients using the Wald statistic indicates that the SDM cannot be simplified to either SAR or SEM. The chi2 value for determining whether the SDM can be simplified to SAR was 39.79, with a
p-value of 0.0001, and the chi2 value for determining whether the SDM can be simplified to SEM was 37.42, with a
p-value of 0.0001. In summary, it is optimal to use the fixed-effects SDM as the final explanatory model for spatial double differences. The estimation results are shown in
Table 3.
5.4. Analysis of Results
The results in
Table 3 show that after stronger controls for other disturbances, the implementation of the “grain-to-feed” policy reduced the production of feed grain by about 3.3 million tons in adjacent districts without the policy. Combined with the hypothesis of parallel trends, it can be seen that if the “grain-to-feed” policy is not implemented, the output of feed grains in the adjacent districts without the policy will increase slowly according to the change in parallel trends. However, after the implementation of the policy, because the “siphon effect” of the policy is greater than the diffusion effect, the output of feed grain in the adjacent districts without the implementation of the policy is reduced. This is mainly because the higher the output of feed grain in the pilot area of the “grain-to-feed” policy, the greater the market competitiveness, the stronger the supply capacity of feed grain in the adjacent non-pilot districts, and the lower the output of feed grain in the adjacent non-pilot districts.
In contrast, the higher the share of agriculture in the region, the stronger the promotion effect on the production of feed grain in spatially neighboring regions. For every 1% increase in the share of agriculture, the production of feed grain in adjacent regions increases by 10.14 million tons on average. A higher share of agricultural output in the region’s agriculture, forestry, fisheries, and services implies a lower share of forestry, fisheries, and services. To meet a region’s demand for meat, eggs, milk, and other proteins, the demand for feed grain from neighboring regions will increase; thus, feed grain production in neighboring regions will be significantly higher. Similarly, the higher the financial income of a region, the more developed the economy; the more robust the demand for meat, eggs, milk, and other high-quality proteins, and the greater the demand for feed grain in neighboring regions. For every CNY 100 million increase in the region’s fiscal revenue, feed grain production in neighboring regions increased by an average of 80,000 tons.
In terms of main effects, the GFS policy significantly increased the production of feed grain in the pilot districts. From the coefficients of the “grain-to-feed” variables, on average, the implementation of the “grain-to-feed” policy can significantly increase the production of feed grain in the pilot areas by about 2.71 million tons. Subsidizing the “grain-to-feed” policy can effectively increase farmers’ incentives to grow fodder grains, thus increasing the overall production of fodder grains. The larger the area planted with crops, the more adequate the supply of feed grain. For every 1% increase in the crop planting area, the supply of feed grain increases by 2.72 million tons on average. Under the condition of ensuring the absolute security of food rations, the larger the area under crop cultivation, the more area that can be used for growing feed grain crops, and the higher the output of feed grain. The higher the local fiscal revenue, the greater the feed grain production. For every CNY 100 million increase in fiscal revenue, feed grain production increases by 110,000 tons, on average. The higher the local fiscal revenue, the greater the infrastructure investment available to promote feed grain production, and the higher the production of feed grain. The coefficients of the consumption expenditure ratio, urbanization rate, population growth rate, and talent share variables are not significant at the 5% level. However, they are significant in the SAR and SEM models, indicating that further robustness tests need to be carried out.
6. Further Analysis
6.1. Robustness Tests
To ensure the robustness of the results, this study adopted the economic–geographical distance weight matrix and the adjacency weight matrix based on the fixed-effects double-difference SDM model for the robustness test to mitigate the interference of different spatial adjacencies on the estimation results. In addition, the difference between supply and demand (demand minus supply) of feed grain was used to replace feed grain supply as a proxy variable for feed grain security to enhance the persuasiveness of the impact mechanism of the “grain-to-feed” policy on feed grain security. The estimated results are presented in
Table 4.
The results in
Table 4 show that, in terms of main effects, the “grain-to-feed” policy is effective in increasing fodder grain production in the policy pilot areas, regardless of the spatial weighting matrix. Similarly, the conclusion that the larger the area planted with local crops and the higher the fiscal revenue, the higher the production of feed grain is robust to the estimation of different spatial weighting matrices. When only the dual spatial adjacencies of economy and geography are considered, the share of local agriculture and the proportion of talented people have significant impacts on the production of feed grain in the region. The higher the share of agricultural output in the region’s agriculture, forestry, fisheries, and services sectors, the lower the feed grain production. For every one percentage point increase in the share of agriculture, feed grain production decreases by approximately 4.94 million tons. The higher the share of agriculture, the lower the share of the forestry, animal husbandry, fishery, and service industries; the smaller the demand for local feed grain, and the lower the supply of feed grain. The more highly educated the local talent, the lower the feed-grain production. For every 1% increase in the proportion of talent, feed grain production is reduced by 8.34 million tons on average. With the growth in learning, people pay more attention to the adjustment of diet structure, the lower demand for high-protein substances, and the subsequent reduction in feed grain production. When considering only spatial adjacency, the higher the population growth rate, the greater the feed grain production. For every one percentage point of population growth, feed grain production increased by approximately 240,000 tons. This is because protein is a fundamental part of the human food system, and population growth inevitably increases the demand for protein intake, thus boosting feed grain production. Adopting the difference between the supply and demand of feed grain as an explanatory variable also proves that the “grain-to-feed” policy can effectively guarantee the security of feed grain in the pilot areas, and the effect of the policy has initially appeared. On average, the implementation of the “grain-to-feed” policy can significantly reduce the difference between the supply and demand of feed grain in the pilot areas by about 1.94 million tons. Similarly, an improvement in regional financial income can also effectively increase the supply of feed grain, narrow the difference between the supply and demand of feed grain in the region, and guarantee the security of feed grain. For every CNY 100 million increase in fiscal revenue, the difference between the supply and demand for feed grain in the region will be reduced by approximately 100,000 tons on average.
Regarding the spatial effect, the results of the estimation by choosing the economic and geographical weight matrix and the difference between the supply and demand of feed grain show that the grain-to-feed policy, while promoting an increase in the production of feed grain in the pilot areas, replaced the production of feed grain in some neighboring areas. In the context of establishing a unified national market, the increase in feed grain production in the pilot areas effectively releases potential space for the development of other industries in the neighboring areas, which is conducive to the formation of an integrated, left-right, and right-right supporting industrial system. From the estimation results of the economic geography weight matrix alone, the larger the area of crop cultivation in the region, the higher the output of feed grain in economically and geographically similar regions. To ensure the absolute security of the food ration, the larger the crop planting area, the higher the land utilization efficiency, and the more advanced the planting technology. Through the effect of technology diffusion, planting technology in neighboring areas has also improved, and the area that can be used for planting fodder grain crops has increased accordingly, resulting in a significant increase in fodder grain production. In terms of the difference between the supply and demand of feed grain, the higher the proportion of agriculture in a region, the more conducive it is to reduce the difference between the supply and demand of feed grain in neighboring regions in space. The higher the proportion of agriculture in a region, the higher the production of feed grain in spatially neighboring regions, the smaller the difference between supply and demand, and the safer the feed grain. This conclusion corroborates the previous estimation results. Taken together, the estimation results of this study are robust.
6.2. Decomposition of Effects
To further explore the differences in the magnitude of the effect of the food-for-feed policy on spatially adjacent pilot and non-pilot areas, this study decomposed the spatial effects of the food-for-feed policy on spatially adjacent areas.
Table 5 shows the estimation results using the inverse geographic distance weight matrix, economic–geographic weight matrix, and the difference between the supply and demand of food as the dependent variable.
The results in
Table 5 show that when fodder grain production was the subject of the study, the direct effect of the food-for-feed policy on the pilot areas was always positive, regardless of the matrix used. Meanwhile, the spillover effect of the policy pilot areas on spatially neighboring pilot areas was significantly positive, and the spatial effect on non-pilot areas was insignificant. Taking the inverse geographic distance weight matrix as an example, after the implementation of the grain-to-feed policy, the grain output of the pilot areas themselves increased by an average of 1.17 million tons, and the grain output of the spatially adjacent pilot areas increased by an average of 449.47 million tons, which is an obvious policy effect. The overall negative spatial effect of pilot regions on neighboring regions is mainly caused by the fact that there are more non-pilot regions, and the spatial effect of pilot regions on non-pilot regions is insignificant. In particular, it should be noted that the negative impact of the policy on the output of feed grain in adjacent non-pilot districts does not mean that the implementation of the policy is ineffective. Because we found that there is a significant and positive promoting effect between the feed grain output in the pilot area and the adjacent pilot area, it also means that we can reduce the negative impact of the “grain-to-feed” policy on the feed grain output in the adjacent non-pilot districts by expanding the implementation scope of the “grain-to-feed” policy.
When using the difference between feed grain supply and demand as the dependent variable for estimation, it was found that after the implementation of the grain-to-feed policy, the policy effect of the pilot regions on neighboring pilot regions was more obvious.
Overall, the implementation of the grain-to-feed policy has significantly promoted feed grain security between the pilot regions and spatially neighboring pilot regions. By imitating and learning from the successful experiences of neighboring pilot regions, healthy competition has been formed among the pilot regions of the grain-to-feed policy, which has effectively increased the total output of fodder grains in the pilot regions and strongly guaranteed the security of fodder grains.
6.3. The Impact on Farmers’ Income
The “grain-to-feed” policy should not only guarantee the security of feed grain but also be able to promote farmers’ income. Any policy reform that reduces farmers’ income is unsustainable. In order to verify the sustainability of the “grain-to-feed” policy, this paper further analyses the impact of the “grain-to-feed” policy on the per capita disposable income of rural residents. At the same time, any policy reform that widens the income gap between urban and rural areas is not conducive to social stability. Therefore, the text also analyses the impact of the “grain-to-feed” policy on the ratio of urban residents’ income to rural residents’ income, and the results are shown in
Table 6.
The results in
Table 6 show that the “grain-to-feed” policy was effective not only in raising the income of farmers in the pilot areas but also in narrowing the urban–rural income gap in the pilot areas. After the implementation of the “grain-to-feed” policy, the income of rural residents in the pilot areas increased by CNY 967, and the income ratio between urban and rural residents decreased by 0.08 units. Therefore, the “grain-to-feed” policy is not only sustainable but also conducive to social stability. On the one hand, it is because the production of feed grain is higher than that of ration grain, which increases farmers’ farm income, and on the other hand, it is because the subsidies under the “grain-to-feed” policy increase farmers’ transfer income. At the same time, we also found that the impact of the “grain-to-feed” policy on farmers’ incomes and the urban–rural income gap in the neighboring areas of the pilot was not significant. On the one hand, the “grain-to-feed” policy reduced the production of feed grain in the neighboring areas, thus decreasing the farmers’ operating incomes. On the other hand, however, it may also encourage farmers in neighboring areas to migrate to urban areas for work and increase their wage income, thus having a non-significant impact on farmers’ income in neighboring areas and on the urban–rural income gap.
6.4. Impact of the Amount of Policy Subsidies
In addition to clearly delineating the pilot areas, the “grain-to-feed” policy mainly encourages and guides farmers to plant feed grain through policy subsidies. According to the requirements of the “grain-to-feed” Work Implementation Programme of the Ministry of Agriculture of China, the amount of subsidies under the “grain-to-feed” policy in each province is mainly determined by the planting area and storage volume of feed grain. In 2017, China’s central financial administration arranged a total of RMB 2 billion in subsidies for the “grain-to-feed” policy, which was used to subsidize farmers who planted feed grain on 10 million mu and cooperatives who collected and stored 30 million tonnes of feed grain. At the same time, the central government broke down the tasks of 10 million mu and 30 million tonnes to 17 provinces and regions according to the factor method. Therefore, this paper estimates the amount of central financial subsidy for different provinces and regions according to their planting area and storage tasks and discusses the impact of the subsidy amount of the “grain-to-feed” policy on the output of feed grain accordingly. The results are shown in
Table 7.
The results in
Table 7 show that the grain-to-feed policy subsidy funds, whether disbursed on the basis of planting area or storage volume, were effective in increasing the production of feed grain in the pilot areas. Controlling for other factors, for every CNY 100 million subsidy from the “grain-to-feed” policy, the production of feed grain in the pilot areas increased by 1.34 million tonnes and 1.46 million tonnes, respectively. Therefore, the conclusion is that the “grain-to-feed” policy has contributed to increasing feed grain production and ensuring feed grain security is robust.
6.5. Impact of Economic Price Signals
In addition to the impact of the number of subsidies under the “grain-to-feed” policy, economical price signals in pilot and non-pilot areas also have an impact on farmers’ behavior in growing feed grain. Since China has a minimum purchase price policy for feed grain and feed grain prices fluctuate from region to region, it is difficult to use feed grain price signals to reflect the real market situation. Instead, we use the average wage of urban private sector workers in each province to indirectly reflect economic price signals in different regions in order to compare the impact of economic price signals in pilot provinces with those in non-pilot provinces.
The results in
Table 8 show that the higher the wage–price signals, the lower the production of feed grain, but the implementation of the “grain-to-feed” policy in the pilot areas effectively mitigates the negative impact of wage–price signals on feed grain production compared to the non-pilot areas. The higher the wage–price signals, the higher the opportunity cost for farmers to grow feed grain, and the more likely they are to go out to work, which reduces the cultivation of feed grain and lowers the production of feed grain. Compared with the non-pilot areas, the implementation of the “grain-to-feed” policy in the pilot areas increased farmers’ income from cultivating feed grain and reduced their opportunity cost of cultivating feed grain, thus mitigating the negative impact of the wage–price signal on feed grain production. Thus, the impact of wage–price signals on feed grain production varied across regions, with the negative impact of wage–price signals on feed grain production being weaker in the pilot regions than in the non-pilot regions.
Finally, this paper also considers the long-term impact of the “grain-to-feed” policy and examines the impact of the “grain-to-feed” policy on the production of feed grain in the next period. The results in
Table 8 show that the “grain-to-feed” policy can effectively increase the production of feed grain in the next period. This is mainly due to the fact that the “grain-to-feed” policy has increased farmers’ confidence and expectation of growing feed grain, thus increasing the production of feed grain in the next period, which further indicates that the implementation of the “grain-to-feed” policy has a stable, sustained and long-term effect.
7. Conclusions and Discussion
7.1. Conclusions
Using the panel data of 30 provinces in China from 2005 to 2020, this paper selects a spatial double difference to difference model to assess the policy impact of the “grain-to-feed” policy on the production of feed grain in pilot areas and spatially adjacent areas. It is found that the spatial distribution of feed grain production in each province in China has obvious spatial dependence and spatial agglomeration, which is characterized by the agglomeration of high values and high values and the agglomeration of low values and low values. The “grain-to-feed” policy can significantly increase the output of feed grain in the pilot areas with a certain degree of precision. To a certain extent, the “grain-to-feed” policy has reduced the production of feed grain in neighboring regions, indicating that the “siphoning effect” of the “grain-to-feed” policy on feed production in neighboring regions is greater than the spillover effect, exacerbating the impact of the policy on feed production. The results of the decomposition of spatial effects show that the policy has enhanced the positive linkages between the pilot areas and neighboring pilot areas, increased feed grain production, and had an obvious spatial spillover effect. The “grain-to-feed” policy intensified the negative linkage between the pilot areas and the neighboring non-pilot areas and reduced the production of feed grain, showing a certain “siphoning effect”. The “siphon effect” is greater than the spillover effect, which is the root cause of the reduction in feed grain production in neighboring regions as a result of the “grain-to-feed” policy.
The results of the robustness test show that, regardless of the method used to measure spatial proximity, the “grain-to-feed” policy can significantly increase the production of feed grain in the pilot areas, reduce the gap between supply and demand of feed grain in the pilot areas, and guarantee the security of feed grain in the pilot areas. The “grain-to-feed” policy can not only guarantee the security of feed grain but also promote farmers’ income increase, which has certain sustainability. Whether subsidies are granted based on the area planted with feed grain or the amount of feed grain harvested and stored, the “grain-to-feed” policy can significantly increase the production of feed grain in the pilot areas and guarantee the security of feed grain in the pilot areas. Due to the obvious differences in economic price signals in different regions, the implementation effect of the “grain-to-feed “ policy in different regions is also obviously different. Compared with the non-pilot areas, the “grain-to-feed” policy can reduce the negative impact of wage–price signals on feed grain production. Finally, the “grain-to-feed” policy has the potential to increase feed grain production not only in the current pilot period but also in the next period, with a certain degree of long-term persistence.
7.2. Comparative Analysis with Existing Studies
Compared with previous studies, this paper will provide new insights for research related to the field of food structural transformation. First, this paper provides a new research direction for studies related to food structure transformation. Most of the studies related to food structure transformation have argued that the food structure should be transformed from ration crops to cash crops. This paper argues that, in addition to the transformation of ration crops to cash crops, ration crops can also be transformed to feed crops, which guarantees food security and improves farmers’ incomes. Secondly, this paper fills the gap in analyzing the spatial effect of the “grain-to-feed” policy to a certain extent. The related research on the “grain-to-feed” policy mainly focuses on the direct effect of the “grain-to-feed” policy, but this paper not only examines the effect of the “grain-to-feed” policy on the production of feed grain in the pilot area but also examines the effect of the “grain-to-feed” policy on the production of feed grain in spatially adjacent areas. Thirdly, this paper provides a new research method for the study of spatial effect decomposition from the perspective of economics. At present, the research on spatial effect decomposition mainly focuses on statistics, and this paper is one of the few studies that apply spatial effect decomposition to economics.
7.3. Policy Recommendations
Based on the conclusions of this paper, this paper suggests that the government departments concerned should improve and perfect the “grain-to-feed” policy in the following aspects so as to give full play to the effectiveness of the “grain-to-feed” policy and realize the objectives of the “grain-to-feed” policy: (1) Accelerate the change in the perspective of food, and comprehensively set up the “Big Food Perspective”. Perspective influences attitudes, and attitudes change behaviors. It is necessary to accelerate the transformation of the traditional food perspective of “taking rations as an outline”; establish the new perspective of “food, economy, forage and grass diversification as a whole”; and pay more attention to the production of non-ration crops such as feed grain, and so on. (2) Further expand the scope of implementation of the “grain-to-feed “ policy. The “grain-to-feed” policy can effectively increase the production of feed grain in pilot areas, but it is slightly insufficient to guarantee the security of feed grain in non-pilot areas. In order to make up for this shortcoming, it is suggested that the implementation scope of the “grain-to-feed” policy be expanded further, starting from the main grain-producing areas, gradually expanding to the balanced production and marketing areas, and finally realizing the national promotion. (3) Increase the implementation of the “grain-to-feed” policy. On the one hand, it is suggested to increase that the number of subsidies for the “grain-to-feed” policy be increased, the financial fund integration in the grain field be strengthened, and the financial fund “reservoir” for the “grain-to-feed” policy be expanded. On the other hand, it is suggested to expand the subsidy standard of the “grain-to-feed” policy, and in addition to the two standards of planting area and storage volume of feed grain, it is suggested to increase the indicators of scientific and technological research and development rate of feed grain and the rate of transformation of achievements, so as to strengthen the financial support for scientific and technological research and development of feed grain and the transformation of achievements. (4) Strengthening the response to the impact of fluctuating economic price signals on feed grain production. It is recommended that priority be given to implementing the “grain-to-feed” policy in regions with large fluctuations in economic price signals so as to mitigate the negative impact of high wage prices on feed grain production.
7.4. Research Limitations and Areas for Future Research
Due to the absence of data and other objective reasons, the limitations of this paper are also obvious, which are mainly reflected in the following points: First, this paper lacks corresponding micro-analysis, especially the micro-analysis from a single farmer or farm. Second, this paper lacks an in-depth discussion on the impact of “grain-to-feed” policy subsidies on the ecological environment and social costs. In particular, there is a lack of in-depth analysis of the dependence of subsidies locking in high input production systems with associated social and environmental costs. Third, it does not take into account the effective response of local governments to the “grain-to-feed” policy. For example, local governments in non-policy pilot areas may reduce or circumvent the main responsibility of food security by “withdrawing counties and combining districts”. Fourth, this paper lacks the impact of international trade rules on the “grain-to-feed” policy, especially how to guide the subsidy direction of the “grain-to-feed” policy toward the “green box” policy.
Looking forward to the future, the subsequent relevant research can be supplemented and improved in the following aspects: First, in the research field, the “grain-to-feed” policy can be expanded to other policies, such as the “Northeast black land protection and utilization” policy. Second, the research dimension is expanded from the dimension of feed grain output to the dimension of quality and structure. The third is to broaden the research data from the provincial level to the prefecture-level city, county, family, and individual levels. The fourth is to broaden the research methods from multi-stage DID to intensity DID to continuously enrich the relevant research on food security in China.