Abstract: [Objective] To analyze the current state of agriculture and animal husbandry integrated management under the grassland ecological protection subsidy and incentive policy. [Method] The households engaging in integrated management of agriculture and animal husbandry in X village, Bairin Right Banner, Inner Mongolia, are taken as research objects, and the data are gathered through literature review and household survey. The case analysis approach is used to analyze their fundamental features, application of policy subsidies and associated influencing factors. The benefit maximization analysis method is employed to assess the revenue and expenditure of the households engaging in integrated management of agriculture and animal husbandry. The inductive reasoning analysis approach is utilized to summarize the research findings and propose solutions to the issues arisen. [Result] Livestock are reared in confined mode for extended time, usually 4.5 months, which has become the primary cause of the increased operating costs for households engaging in integrated management of agriculture and animal husbandry. Although renting others′ pasture and forage planting base, grazing density of large- and medium-scale households is still significantly higher than the grazing density standard in this area, resulting in overgrazing. Grazing prohibition subsidies of medium- and small-scale households basically make up for the increased forage costs during the grazing prohibition period. However, the subsidy is insufficient for the large-scale households to cover the increased forage costs during the grazing restriction period, leading in grazing during the prohibition period. The main source of revenue for large- and medium-scale households is family operating income, whereas the transfer income of small-scale households dominates by the policy subsidy and is close to the entire family operating income, showing that the scale economies effect are gained at the expense of grassland ecology. Countermeasures and suggestions are proposed in light of the aforementioned issues, including revising grazing standards, learning from the ′hoof and leg theory′ experience, implementing the ′three changes reform′ system, and changing the distribution mode of grassland ecological protection subsidy and incentive funds. [Conclusion] This paper clarifies the current situation and existing problems in agriculture and animal husbandry integrated management under the grassland ecological protection subsidy and incentive policy, and provides references for the income increasing of households engaging in integrated management of agriculture and animal husbandry as well as the accurate and effective implementation of the grassland ecological protection subsidy and incentive policy.

Key words: grassland ecological protection subsidy and incentive policy, agriculture and animal husbandry integrated management, households, countermeasures and suggestions