Abstract:
With the fundamental changes in the economic system, China’s rural economy has been rapidly developed since the economic reform and opening, but agricultural production risks remain. Moreover, the poverty problem is serious in the tropical and subtropical mountainous area of the southern border of Yunnan, China, with abundant agricultural crops and different profit risks. Based on questionnaire survey data of 366 rural households in 2015 in mountainous area of the southern border of Yunnan, China and applying the standard deviation and factor analysis methods, this paper examined the inputs and outputs of rural households and analyzed the profit risks under different plantation structures. Results indicated 1) the plantation structure was diversified with many cash crops including sugarcane, banana, coffee and tea, and grain food crops, including corn, paddy rice, and upland rice; and 2) the profit risk was significantly different under different plantation structures in current conditions of market economy. The profit risk of the single plantation was generally higher than the multiple plantation structure. The profit risk of cultivated area of over 50% of cash crops was generally lower than the cultivated area of less than 50% of cash crops. Currently the plantation structure in the region was mainly multiple plantation with less than 50% of cash crops and the orientation of adjustment of plantation structure was benign but the profit risk was comparatively higher. Therefore this paper suggests that the policy guidance should conform to the trend of the development of market economy in Yunnan, increasing the share of cash crop production to reduce the profit risk provided keeping food security for the region.