Do Production Support Policies are Effecting the Vegetable Planting Scale? Evidence from Xingtai City, China

Abstract

The development of the vegetable industry is inseparable from the support of policies. At present, the agglomeration of the vegetable industry is continuously optimized, while industrialization and scale are constantly evolving. In order to explore the impact of production support by local government policies on the scale of vegetable planting, and the problems existing in these policies, this research estimates the efficiency of policies production support on vegetable cultivation. To this end, an overviewof the vegetable production policies and measures in the main vegetable-producing areas in Xingtai, Hebei province was conducted. The structural equation model was applied to test the relationship and extent of vegetable production support policies on thevegetable planting scale. Results of the research showed that the production support policy has a positive effect on the degree of vegetable price fluctuation and the scale effect does exist, while the direct effect on the scale planting was not significant. However, the indirect effect of taking the degree of price fluctuation as the intermediary variable was significant. It indicates that production support policies may affect scale through the degree of price fluctuations. Policymakers should improve the policy system, and increase the content of subsidies. Promote cooperation between small-scale farmers and large-scale business entities.