Chunna Shi and Jie Gao. Research on Financial Compensation Standard Model for the New Round of Grain for Green Project Based on a Case Study of Zhenba County, Shaanxi Province. Dynamic Systems and Applications 29 (2020) No. 10, 3024 – 3051

https://doi.org/10.46719/dsa202029107

ABSTRACT.
Reasonable formulation of financial compensation standard for grain for green project is one of the key issues for the effective implementation of the new round of the project. A new round of grain for green project is carried out in a “bottom-up” way, which leaves more choices for farmers, but at the same time has some problems such as inefficient and unfair allocation of compensation funds for grain for green. In this paper, in view of the problems existing in the implementation of the project, considering the opportunity cost and the technical grade of farmers and other factors, the county-level financial compensation standard model for the new round of grain for green project is constructed to maximize the net income of the project. Finally, the results before and after the optimization of project compensation standards are compared and analyzed taking Zhenba County, Shaanxi Province as an example. The results show that: 1) the expected contribution to the ecological benefits of the project is different among farmers of different technical grades, and different compensation funds should be given; 2) the differential distribution of compensation standards of farmers of different technical grades is conducive to the efficient use of compensation funds for the project, which can significantly improve the net benefits of farmers participating in the grain for green project; 3) different compensation standards for farmers at different technical grades have significant effects on the improvement of their enthusiasm and initiative to participate in the project.

Keyword: New round of grain for green; linear programming model; compensation standard; opportunity cost.