The Impact of the Rise in Vegetable Prices on Vegetable Producer Behavior–Based on the survey of vegetable producers in Jiayu, Hubei Province

College of Economics in Yangtze University, Jingzhou, 434023, Hubei, China

Abstract

In order to study the impact of the rise in prices of vegetables on vegetable producers, and to increase the revenue of vegetable producers, this paper does a survey by anonymous sampling questionnaire. Results shows that: most vegetable growers think that vegetable prices should rise and would continue to rise, and that vegetable prices would increase their revenue, thus in the coming year they would expand the planting scale of vegetable variety whose increase rate is the largest in this year. But because of the increase of logistics costs and production costs, some farmers benefit very little from the rising trend of vegetable prices. Most farmers expect too much in the trend estimation of the prices of vegetables and also lack of planning and forward-looking in production, thus the planting area of single variety is often decided by the market of previous year. According to analysis of the impact of the rise in vegetable prices on vegetable producer behavior, this paper gives the following suggestions to increase revenue of vegetable producers: change the mode of thinking, improve rural information platform, and increase capital investment for vegetable production base.