Dynamic analysis of subsidies for reducing farmers' grain storage losses

JianHua Wang; Xing Huang; JianHua Wang; Xing Huang

doi:10.3934/jimo.2026061

Journal of Industrial and Management Optimization

2026, Volume 22, Issue 4: 1650-1671. doi: 10.3934/jimo.2026061

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Opinion paper

Dynamic analysis of subsidies for reducing farmers' grain storage losses

JianHua Wang ^,,
Xing Huang

School of Business, Jiangnan University, Jiangsu 214122, China

Received: 04 January 2026 Revised: 19 February 2026 Accepted: 28 February 2026 Published: 10 March 2026
03C05, 08C10, 45A05, 65A05

Large grain stocks held by rural households make reducing on-farm storage losses essential for strengthening food security. However, in the absence of government support, farmers lack sufficient incentives to invest in improved storage practices. To address this issue, this study adopted a dynamic perspective to construct and analyze three types of subsidy policies: the grain price subsidy, a new storage tool subsidy, and a hybrid subsidy combining both subsidies. Optimal control theory was employed to evaluate the effectiveness of each subsidy strategy. The results showed that all three subsidy types improve farmers' income and grain quality, with the hybrid subsidy outperforming the single-subsidy schemes in overall performance, particularly in achieving higher income gains, better grain quality, and more effective loss reduction. Specifically, the new storage tool subsidy showed greater effectiveness in improving grain quality, while the price subsidy contributed more significantly to increasing farmers' income. Furthermore, under high rates of grain quality degradation, the marginal benefits of all subsidies in improving quality declined markedly, indicating that the effectiveness of subsidy policies varies under different conditions.
- grain storage loss reduction,
- new storage tool subsidy,
- price subsidy,
- hybrid subsidy,
- dynamic game theory,
- optimal control theory
Citation: JianHua Wang, Xing Huang. Dynamic analysis of subsidies for reducing farmers' grain storage losses[J]. Journal of Industrial and Management Optimization, 2026, 22(4): 1650-1671. doi: 10.3934/jimo.2026061

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Abstract

Large grain stocks held by rural households make reducing on-farm storage losses essential for strengthening food security. However, in the absence of government support, farmers lack sufficient incentives to invest in improved storage practices. To address this issue, this study adopted a dynamic perspective to construct and analyze three types of subsidy policies: the grain price subsidy, a new storage tool subsidy, and a hybrid subsidy combining both subsidies. Optimal control theory was employed to evaluate the effectiveness of each subsidy strategy. The results showed that all three subsidy types improve farmers' income and grain quality, with the hybrid subsidy outperforming the single-subsidy schemes in overall performance, particularly in achieving higher income gains, better grain quality, and more effective loss reduction. Specifically, the new storage tool subsidy showed greater effectiveness in improving grain quality, while the price subsidy contributed more significantly to increasing farmers' income. Furthermore, under high rates of grain quality degradation, the marginal benefits of all subsidies in improving quality declined markedly, indicating that the effectiveness of subsidy policies varies under different conditions.

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