Reforming China's grain policy could impact both local and global markets. By changing price support to area payments, China could still produce most of its own wheat, maize, and rice. Importing more grains could raise international prices, especially for wheat and rice. Gradual reform with compensatory payments could help ease the transition and benefit consumers the most. Decoupled area payments could boost farm income without costing society more. Lowering costs of managing grain stocks would also save money during reforms.