Abstract: Since the promulgation and implementation of the Farmers' Professional Cooperatives Law in 2007, the government has introduced multiple policies to support farmers' professional cooperatives. Government subsidies are a common practice internationally to support industrial development. However, supporting certain types or individuals among multiple business entities in the industry is debatable. This article combines the characteristics of the rural land market, adds government subsidy variables to the production function and profit function of farmers' professional cooperatives, and obtains the multiplier effect of government subsidies on the demand of farmers' professional cooperatives. Then, it analyzes the impact of increased demand on the price of rural land transfer market, and finally concludes the impact of planting subsidies, processing subsidies, and custody subsidies of farmers' professional cooperatives on land transfer prices. Research has shown that subsidies for planting in farmer professional cooperatives will increase the demand for land transfer, leading to an increase in land transfer prices; The impact of land transfer by farmers' professional cooperatives on land transfer prices is greater than the impact of adding new members on land transfer prices; Trust subsidies will reduce land supply, leading to an increase in land transfer prices; The impact of processing subsidies on rural land transfer prices is uncertain; Subsidies have had a crowding out effect on farmers' land demand.
Keywords: Farmers' Professional Cooperative; Supportive policies; Land transfer; Land rent; market mechanism