Empirical Study on Farmers’ Income from Agriculture in Fujian Province

Through studying the statistical data of Fujian Province, it’ s evident that the farmers’ income from agricultural production and wage is increasing gradually. Recent years has witnessed a great increase in the net income of farmers. Using Granger causality test of the income and food expenditure, the test indicates that food expenditure of urban residents is the cause of farmers’ income of agricultural production. Cointegration test shows that there is a long term stable equilibrium between the two series, and an error correction model is built later. Thereafter some insight is played on how to increase farmers’ income under a new era of boosting urban resources to support the rural development and encouraging industry to driving agricultural production.