Reform of Soybean Subsidy Policies and Its Impact on Farmer Income and Income Inequality

Based on provincial panel data from 2001 to 2022, this study employs Difference-in-Differences (DID) models and mediation effect models to empirically analyze the impact of soybean subsidy policy reforms on farmer income and income inequality. The findings reveal that the reform of soybean subsidy policies has significantly increased farmers' operational income, wage income, and total income, a conclusion that remains robust under rigorous robustness tests. Mediation effect tests identify the enhancement of soybean production capacity as a critical pathway through which subsidy policy reforms influence farmer income and income disparity. Further analysis indicates that while the reform tends to widen gaps in operational income, wage income, and total income among farmers, it also contributes to a synergistic improvement in both income levels and inequality when these factors are considered holistically. Given these findings, while affirming the yield-boosting effects of soybean subsidy policies, a dual approach combining price-based regulation with income-support measures should be adopted to enhance farmer income and reduce income inequality.