Abstract:Based on the data of rural fixed observation points from 2003 to 2011 and employment of the extended Nerlove model and SYSTEM-GMM estimation method,this paper introduces variables of grain marketization policy and non-agricultural employment level to construct a dynamic farmers’ supply response model.And the results of empirical analysis explore the extent to which farmers’ wheat planting decisions respond to price and non-price factors and show that:(1) Whether in the short-term or long-term,farmers’ wheat planting decision has always been sensitive to the price.(2) The direct impact of non-agricultural employment on farmers’ wheat acreage is not very significant in the short term,but it indirectly increases the sensitivity of farmers to wheat production costs,which means that the growth in the level of non-agricultural employment increases the negative production-reducing effect of production costs on wheat.(3) Marketization policy plays a persistently important role in affecting farmers’ wheat planting.This paper proposes to improve the subsidy policy for grain production,to break down the “clam” of production costs through leverage adjustment,to determine the reasonable minimum purchase price level,to scientifically formulate adjustment ranges,and to guide farmers to rationally adjust the planting structure.