Starting in 2004 and distributed the following year.

1. Direct grain subsidies started in 2004

1. In order to protect the interests of grain farmers, mobilize farmers’ enthusiasm for growing grain, increase grain production and promote farmers’ income, the state provides farmers with A policy subsidy for grain farmers.

2. Subsidy procedure:

After the provincial finance releases direct grain subsidy funds, the county finance bureau will decompose the proportion of 50% of the grain sowing area in each township and the average grain output in the past three years. After arriving at the township (town), the township (town) will then divide it into households according to the grain planting area and grain output of each village. After publicizing no objections, it will be reported to the Finance Bureau for review. After review, the Finance Bureau will allocate the funds to the special fund account for benefiting farmers in each township.

2. The lowest purchase price policy started in 2004

The state announces the lowest purchase price policy for rice, wheat, etc. every year before sowing grain. When the market price is lower than the lowest price, Grain enterprises designated by the state purchase grain at the lowest price to stabilize market prices and protect farmers' interests.

3. Subsidies introduced after 2004

1. A comprehensive direct subsidy policy for agricultural production materials in 2006 to compensate for the impact of price changes in agricultural inputs such as fertilizers and diesel.

2. In 2007, the central government established a grain risk fund and production material subsidy policy (improved seed subsidies, agricultural machinery purchase subsidies, etc.).

3. In 2008, the state significantly raised the minimum purchase price of grain.