China's agricultural subsidies rise following establishment of general-input subsidy program
China?s expansion of agricultural support is driven by a mix of factors, including a campaign to ?modernize? agriculture by inducing adoption of modern inputs and increased investment, concerns about rural-urban income inequality, and concerns about maintaining ?food security.? Growth in subsidy payments reflects the strategy of increasing subsidies annually. Most of the growth in payments is in the ?general-input subsidy? that aims to offset rising production costs in order to maintain net returns to grain producers.