Innovation of Interprovincial Horizontal Benefit Compensation Mechanism Between Major Grain-producing Areas and Major Grain-consuming Areas: Analysis Based on the Realistic Goal of Benefit Compensation

Inter-provincial horizontal benefit compensation mechanism between major grain-producing areas and major grain-consuming areas (IHBCM) is the key instrument for supporting major grain-production areas and ensuring food security, of which clarifying the goal of compensation is the prerequisite. Learning from the history of policy evolution, the main realistic goal of benefit compensation is to improve the "two motivations" and promote "producer-consumer collaboration". The internal logic of benefit compensation mechanism is to solve the "principal-agent" problem between the central government and local government. However, the ongoing compensation policy based on central transfer payments faces many difficulties when dealing with the above goal. In view of the shortcomings of the ongoing compensation policy, the IHBCM should be established with the fund system and performance assessment system as the main carriers, so as to improve "two positive" and promote "producer-consumer collaboration", which contains the endogenous compensation, the exogenous compensation, the industrial chain construction, the supply chain construction and market construction.