China's reform is a transformation from planned economy to market economy, whose core is to introduce market competition, let the market play a decisive role in resource allocation, and replace the leading role of the original planned economy.The history of China's agricultural reform shows that in order to ensure China's food security, increase farmers' income, promote the international competitiveness of China's agriculture, and maintain financial sustainability, the formulation of agricultural policies must respect market laws.In the era of planned economy, suppressing the price of agricultural products and limiting farmers' choices of planting will result in serious shortage of food supply and farmers' long-term poverty. After 1978, the purchase price was raised, so that the grain supply increased immediately, and the problem of food and clothing shortage was solved immediately.After the reform and opening up, the government tried to raise the purchasing price of grain several times and distort the market. As a result, the inventory increased sharply, and it could not be sold at the right price. After paying huge financial resources, it had to return to the market economy.China's future agricultural reform can learn from the reform of EU's common agricultural policy. We should respect the WTO rules and the market, adopt the direct subsidy system that does not distort the market as far as possible, and distribute those subsidies directly to farmers.
