The Influence of Agricultural Policy and Related Variables on the Agricultural Income of Farmers

With the developing and deepening of rural reform, it comes to a critical issue that improving farmers' income including agricultural income and non-agricultural income. It can be summarized in five aspects affecting agricultural income: agricultural production price, total sown area of crops, agricultural production material price, agricultural techonology and national finance. Quantitative analysis and grey relational analysis(GRA) are used in the paper. Empirical results show that agricultural production price is the primary factor affecting agricultural income of farmers and the two variables of agricultural production material price and agricultural taxes have significant negative influences on agricultural income. In the current level of economic development, it is a ideal choice to increase non-agricultural income for improving farmers' income significantly.