| The system of grain target price is a new beginning for China's agricultural products price formation mechanism and the agricultural subsidy policy, but at the same time it is also a huge challenge. On the base of introducing the background of system of grain target price and discussing its practical significance, the paper points out that the implementation of the target price system faces with four problems: the difficulty of determining the reasonable target price, the difficulty of determining the effective subsidy method, the difficulty of determining the specific subsidies and the difficulty of farmers' production decision. Aiming at the difficulties in implementing the system of grain target price, this paper proposes several measures and suggestions including determining a reasonable target price according to the principle of combining cost with income, innovating subsidy method by learning from foreign experience, implementing agricultural production and operation scale, improving the grain futures market and establishing the mechanism of consumer subsidies to cope with it. |
