agricultural public financial funds refer to the investment of the state finance in the production, management and maintenance of public products such as public facilities and public services. Distinguishing the input of agricultural private products from that of public products reflects the requirement of efficiency principle. Agricultural private products are mainly invested by agricultural producers and operators themselves, and the state only gives guidance and help. According to the principle of public finance, we should gradually introduce competitive areas of agricultural private products supply, focus agricultural financial funds mainly on the production and management of agricultural pure public products, and concentrate financial resources on agricultural public capital projects to improve the efficiency of public resources allocation.

the policy orientation of agricultural public financial capital investment is that the central and local governments will pay the expenses of pure agricultural public products free of charge in full, mainly including the policy of paying for agricultural public facilities and the policy of paying for agricultural public services. This part of the fiscal expenditure should be relatively stable in the long run. It is necessary to reasonably determine the business expenses of agricultural public institutions, the maintenance expenses of agricultural public facilities, the annual new public facilities expenses and public service expenses, and maintain a certain degree of growth on the basis of maintaining stability and according to the needs of agricultural development. For the expenditure of pure agricultural products, the central and local governments and local governments at all levels should clearly divide the powers and responsibilities, and resume a perfect intergovernmental financial transfer payment system to ensure that the supply of agricultural products in different places with different economic development levels reaches the general level. At present, the items classified as agricultural public financial expenditure in China include the following contents.

(1) pure business expenses of the agricultural sector. For example, the expenditure on management services provided by agricultural public administration and institutions. This part is basically consistent with the current financial system, that is, the administrative expenses for agricultural management in governments at or above the township level are paid by the funds in the national financial budgets at all levels, and the financial gap of local governments in poverty-stricken areas is compensated by the higher-level governments according to the provisions of transfer payment.

(2) expenditure on agricultural public facilities. Such as large-scale agricultural public facilities (power network, roads, other modes of transportation, markets, ports, communications, meteorology, etc.). This part is mainly all kinds of infrastructure not only enjoyed by residents of a village, including roads and highways connecting villages, and regional irrigation and water conservancy facilities covering more than one village.

(3) rural education expenditure. Enjoying education is the basic right of every citizen, so the education system is the basic public product of the whole country. Rural education should be completely socialized, not community-oriented, just like the urban education system. The capital construction expenses and business expenses of primary and secondary schools in rural areas should be allocated from the financial budget, and should not be directly borne by farmers, because urban residents do not directly bear the expenses of education.

(4) research funds and research extension service expenditures of agricultural public projects. It mainly includes research, pest control, promotion and consulting services, inspection services, marketing and promotion services. Agricultural regulatory fiscal expenditure refers to the fiscal expenditure used for agricultural macro-control such as agricultural structural adjustment, guiding farmers' behavior and buffering market shocks. Like other industries, under the condition of market economy, macro-control of agriculture is the general requirement of economic development, which embodies the principle of stability. The policy orientation of agricultural macro-control fiscal expenditure is to adopt financial subsidies or set up stable funds.

Macro-control under market economy is a kind of control carried out by the government on the basis of market mechanism to allocate resources. The government uses a certain amount of financial funds and its multiplier effect to influence and intervene the behavior of the private sector, so as to mobilize a large number of economic resources to allocate according to the predetermined goals, so as to maintain the balance of economic aggregate, price stability and sustained income growth. The remarkable feature of this process is to use a small amount of funds to drive the transfer of a large amount of funds. To achieve this effect, it is not ideal to adopt the method of full financial payment. First, the amount of state financial funds is limited; Second, this method can't change the marginal cost or marginal income of the regulated object, so it can't drive a lot of economic resources to flow. However, the use of financial subsidies can achieve this goal. In addition, it is an effective way to stabilize the market by establishing a stabilization fund when the market is impacted by the outside world. The source of funds for the stabilization fund can be the national financial funds as the main body, and the investment fund can be established by issuing bonds or other valuable securities. There is a special fund management department to manage the use and investment of the fund. When agricultural production is impacted by the outside world or the agricultural product market is impacted by the outside world, the fund can be used to invest in agricultural production or intervene in the agricultural product market in the opposite direction, so as to achieve the purpose of stabilizing agriculture.

The financial subsidy policies for agriculture include: ① agricultural natural resources use-oriented subsidies; ② Subsidies for adjustment of agricultural production structure; ③ Subsidies for structural adjustment of agricultural products; ④ Farmers' production technology guidance subsidies; (5) Policy discount on agricultural production and purchase and sale credit; ⑥ Regional development assistance plan, etc. The agricultural stabilization fund includes: ① the main agricultural products supply security reserve fund; ② Domestic food aid fund; ③ Agricultural natural disaster relief fund, etc.

the total amount and timing of agricultural regulatory capital investment should be determined according to the objectives of agricultural development and the disturbance situation of agricultural market. The government should conduct real-time detection of agricultural development, natural disasters and market supply and demand structure, and predict possible fluctuations. The most effective way is to use modern equipment and information network to establish a complete early warning system for agricultural production and agricultural products market, to detect agricultural production and market conditions and to warn of possible fluctuations, so as to reverse the disturbance factors of agricultural production and achieve the goal of stable, sustained and rapid development of agriculture. Agricultural protective financial fund refers to the financial expenditure used to support and protect the agricultural industry, which embodies the principle of fairness. Supporting and protecting agriculture is determined by the characteristics of agriculture itself. The externality and weakness of agricultural industry require the government to internalize the huge positive externality of agriculture (in terms of this feature, agriculture itself is a public product) to compensate for the deficiency of this market mechanism, so as to realize the coordinated development of the national economy and optimize the interests of the whole society. On the one hand, due to the externalities of agricultural industry (such as providing good ecological landscape and beautiful natural environment, etc.), agricultural input not only benefits the investors themselves, but also its benefits will spill over to other regions, departments and industries. In the case that property rights are difficult to define, it is impossible to charge and compensate for the spillover benefits, thus reducing the incentive of the private sector to invest in agriculture. If agricultural protective subsidies are used to correct this market failure, the level of agricultural development can reach the optimal level of society. On the other hand, due to the weakness and high risk of agriculture, the general profit level of agriculture is lower than that of other industries, which also causes the private investment level and development level of agriculture to be lower than the optimal level of social development. This also requires financial subsidies to stimulate private investment in agriculture and improve the income of agricultural investors.

it is a common practice for all countries in the world to support and protect agriculture through financial means. in the framework of WTO, the government is allowed to implement certain protection and support policies for agricultural development, mainly including part of direct payment to farmers, government subsidies in income insurance and income safety net plans, payments under environmental protection plans and payments under regional development assistance plans, etc., and micro-support standards can also be used to support agriculture.

the policy orientation of agricultural protective investment is to provide protective subsidies and a certain amount of transfer payments to agriculture. Agricultural protection subsidy policies include: ① income support subsidies for special families; ② Subsidies for agricultural production protection; ③ Agricultural insurance subsidies; ④ Eco-agricultural subsidies; (5) Subsidy policy for income insurance and income safety net plan; ⑥ Other subsidies that do not exceed the micro-support standard. Agricultural transfer payment mainly includes financial expenditure for poverty alleviation and regional agricultural development support.

the fiscal expenditure for agricultural protection should determine the level of agricultural protection subsidies according to the long-term goal of the state to protect agriculture, and calculate the investment amount of agricultural protection subsidies in each period. The transfer payment for regional development and poverty alleviation should be based on the long-term development and poverty alleviation strategy, aiming at the poor population and implementing a flexible transfer payment system according to the economic prosperity.

(Wu Weijin, Liang Yiping, Liang Shuang, etc. Agricultural Economics [M]. Changsha: Hunan People's Publishing House, 1999: 29)

The above information is selected from the internal reference materials of the undergraduate course of Agricultural Economics in South China Agricultural University.