It is highly recommended to utilize the experience of the developed countries on the intermediate policies for foodstuff price,to improve the current policies between the lowest purchase price of foodstuff and the direct allowance for the foodstuff growing.

Aim for building a new settling accounts system of basic lever grain purchasing station was advanced by analyzing its process and changes between new and old grain purchasing ploices.

On the other hand,the total output and final demand of the grain and the other agricultural sectors would decrease accordingly with the implementation of Grain Minimum Purchase Price Policy,while the national income would have a slight increase.

Based on the time series of grain production in China from 1950 to 2006,this paper analyses the effect of grain price on the acreage of Grain using C-D production function;and then demonstrates the dynamic effect of price fluctuation on the acreage under grain by the Cobweb Theorem.

From the general equilibrium of grain production sector and non-grain production sector,qualitatively analyze the reaction of grain price,grain output and the use of production factor to the aggregate demand shock and presents an explanation of the relation between grain price,production and the aggregate demand fluctuation.

The issue of grain price is one of the vital issues in new rural construction.