On the reasons why finance must intervene in "agriculture, countryside and farmers"

As a special industry related to people's eating, agriculture is different from other industries. As a big agricultural country, China's issues concerning agriculture, rural areas and farmers are of great significance to the national economy and people's livelihood, and it needs the government's support for agriculture, rural areas and farmers.

First, agriculture has the characteristics of high risk and low income, which determines the weakness of agriculture. The compensation for non-agricultural industrial land is much higher than that for agricultural land, which leads to the continuous increase of land loss; The low comparative benefit of agriculture leads to the flow of capital and high-quality labor to non-agricultural industries; Agricultural products are not resistant to storage and transportation, which leads to unfavorable terms of trade for agriculture. These inherent weaknesses of agriculture determine that the existence and development of agriculture cannot be separated from financial support.

Second, the publicity of agriculture determines the need for government financial support. Agriculture has a great external positive effect, which cannot be compensated by market price. The characteristics of agricultural non-product output, such as the social and political impact of food security, the improvement of the quality of life brought by improving the environment, and the external value brought by biodiversity, determine that it is not competitive. The publicity of agricultural non-commodity output requires the government to implement agricultural protection.

Thirdly, politically speaking, the problems of agriculture, rural areas and farmers have become the bottleneck hindering the all-round economic and social development of China. The work of agriculture, countryside and farmers is not only the basic work of "ensuring growth, people's livelihood and stability", but also a major political issue for the long-term stability of the country. In the process of supporting "agriculture, countryside and farmers", public finance can realize the triple functions of politics, economy and society by giving full play to its functions. In particular, farmers are the largest group of citizens in China, but this group is at the grass-roots level of society, so the stability of farmers determines the stability of the whole society. The public fiscal policy is more inclined to the broad masses of farmers, which has important political significance.