Operational decisions of"Rural Revitalization Fund+Cooperative"to jointly develop digital agriculture under equity cooperation perspective
In the era of agriculture 4.0,digital agriculture is inevitable,and to develop modern agriculture,governments have no choice but to adopt it.As the main body of local governance,local governments undertake the important task of promoting the development of digital agriculture.However,facing the high investment cost of digital technology,the vast majority of local governments in China are not yet able to provide large-scale subsidies to support the development of digital agriculture.Furthermore,the cooperatives in China are still in the initial stages of development,and they,as a combination of the weak,have limited funds.Moreover,the knowledge level and credit level of members are generally low,and the operation of cooperatives is not standardized,making it difficult for them to raise external financing.Therefore,popularizing digital technology and equipment in agriculture and improving the participation of cooperatives is key to promoting the efficient development of digital agriculture.However,there has not yet been significant quantitative research on this issue,a problem that this paper seeks to remedy.In view of the above problems,we introduce the market-oriented Rural Revitalization Fund and the equity cooperation mode advocated in China's agricultural policies.Notably,based on the types of financial support available for agriculture(free investment and paid investment)in China,local governments are divided into public welfare types and for-profit types.Based on this distinction,we develop two types of two-stage Stackelberg game models,in which the local government invests in digital technology and the cooperative decides whether to hold shares in the investment.In these models,the local government first decides the investment method,according to their funds,and then determines the unit product quality increment and its selling price.Then,the cooperative considers whether to carry out equity cooperation for government investment,and determines the market price.We obtain the optimal decisions and profits of the local government and the cooperative through reverse induction,and analyze the motivation for,and impact of,equity cooperation on the investment and operation of digital agriculture.Finally,the theoretical results are fully verified by quantitative analysis,and the operation mechanism of the equity cooperation mode in digital agriculture investment construction and management is further analyzed.At the theoretical level,this paper demonstrates the positive impact of the Rural Revitalization Fund and the equity cooperation mode on the joint construction of digital agriculture by"local government and cooperative".The results show that,firstly,when different types of local government invest in digital technology,the quality of agricultural products improves to varying degrees;however,compared with the public welfare supply chain,the decision-making(including the quality of agricultural products)and performance level of the for-profit type is lower.Secondly,the equity cooperation mode has the implementation motivation between the cooperative and the for-profit government whose financial capital is operated in a market-oriented manner,but cooperative and the public welfare government are not.Thirdly,the equity cooperation mode has a positive impact on improving the quality of agricultural products,stimulating market demand and increasing government profits,and the three increase with the increase of shareholding ratio,but damage the interests of the cooperative to a certain extent.Finally,given the government's regulation on the quality of agricultural products,the incentive compatibility mechanism can give consideration to the profitability of the Rural Revitalization Fund and the public welfare of the government,and effectively enhance both the government and the cooperative's willingness to invest.The study closely combines policy research with countermeasure research,and provides a theoretical basis for governments to formulate relevant policies to promote the development of digital agriculture.Specifically,local governments should take some measures to encourage local farmers to adopt digital technology,such as strengthening the construction of their agricultural digital talent team,or creating a batch of digital agriculture pilot areas to demonstrate effective digital agriculture under local conditions.Local governments with insufficient financial funds should establish a Rural Revitalization Fund and adopt the equity cooperation mode to enable the long-term and stable development of digital agriculture.In addition,local governments should also undertake measures to improve consumers'awareness of the quality of agricultural products(such as the current implementation of the"Sanpinyibiao"in agricultural production,and enforcement of severe punishments for food safety breaches),and formulate a reasonable benefit distribution mechanism to encourage agricultural operators to participate in the construction of digital agriculture.This paper introduces the Rural Revitalization Fund and the equity cooperation mode advocated in China's policy documents,and demonstrates their positive impact on the"local government+cooperative"joint development of digital agriculture.In this way,the paper contributes to agricultural supply chain research and theory.At the same time,in view of the different investment methods of local governments in digital technology,this study can provide a decision-making reference for the suitability of cooperatives to embrace equity cooperation mode.
Policy research and countermeasure researchDigital agriculture technologyFinancial support for agricultureMarket-oriented operationEquity cooperation mode
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