Abstract: Grain target price is neither a price reflecting the entire cost and reasonable profit of grain, nor the price criteria used to approve the national agricultural subsidies, but a kind of political price ceiling. The political objectives of it possess macroscopical quality, multi-dimensional nature and comprehensiveness, including ensuring the national grain security, balancing urban-rural income gap, coordinating the spot and future prices, associating domestic grain price with the international one, controlling the general price level, etc. Taking corn as an example, this paper calculates and analogously synthesizes the grain target price based on the above-mentioned policy objectives. At last, some policy suggestions are proposed.

Key words: grain price; grain target price; price goal; general price level; grain security