The Study Of Chinese Agricultural Industrialization Financial System

This paper studies on the financing system of agriculture industrialization aims atconstructing the theoretical framework of the financing system of agricultureindustrialization. The author systematically comb the architecture of the financ ingsystem of agricultural industrialization, function orientation and operation goal,construction principle, basic conditions, main work process and its strategy. Firstly, byanalyzing the present situation of the financing system of agricultural industr ializationin China, the relationship between the level of agricultural industrialization and ruralfinancial support, the financing demand of different business entities and itscharacteristics in agriculture industrialization, studing the structure of the financingsystem in different stage and under different organization model of agricultureindustrialization; then by researching the efficiency of rural financial resourcesallocation and factors that affect the efficiency of rural financial resources allocation inagriculture industrialization, it explores the top-level design of the system to build theindustrialization of agriculture and the implementation of the specific countermeasures,and the way of optimizing the rural financial resources allocation, in order to solve thefinancing difficulties of agriculture, and eventually promote the healthy development ofagriculture and rural economy.The agriculture industrialization refers to a production and operation system whichoriented to the market, revolves around improving the agricultural comparativeeconomical benefits, optimizes and combines various market factors. The regionalleading industry adopts specialized production, enterprise management, integratedoperation and socialized service, and gradually forms production-supply-marketingintegration, agriculture-industry-commerce integration and economy-science-educationintegration. Agriculture industrialization is internationally called “AgriculturalIntegration”. The development of agriculture industrialization have important supportand linkage effect on increasing farmer’s income and constructing rural urbanization, isthe fundamental way to transform traditional agriculture and help farmers to get rich,and is also an essential part of solving the "three rural issues". The management ofAgriculture Industrialization is a large-scale systematic project, in addition to superiororganization, accurate market forecasts, scientific and technical guidance, professional management and effective government support, which more desperately need thesupport of financial resources, because many parts of agriculture industrializationrequire substantial capital investment. After more than20years of development,agricultural industrialization in China has made some achievements, but there are stillmany problems and actually the biggest problem is a serious shortage of funds due tohistorical reasons and market factors. Rural capital supply and demand gap is huge, itwas estimated that by2012the rural capital supply and demand gap of18.8489trillionyuan. So the urgency is that establishing a sound system of financing agricultureindustrialization to effectively solve the bottleneck of funds, promoting the developmentof agriculture industrialization.This paper based on the theory of financial resources from the perspective ofurban-rural integration mainly did the following research:(1) it analyzes therelationship between finance and economy, the rural financial system and the ruraleconomy in depth. Rural finance is an important part of the rural economy, plays animportant active role in promoting the development of rural economy. Actually the factwe are facing is that the development of rural finance lags behind, unable to meet theneeds of rural economic development situation, we need to put a banner of "financeorientation" and struggle to develop the rural economy by construction of rural financialsystem that put supply ahead of demand. But one of the important reasons for thebackward development of rural finance is the lack of strong industry support for therural financial. Therefore, we need to promote the development of agricultureindustrialization, by enhancing industry and make it more attractive to capital andfinancial services, eventually propels a virtuous circle in the performance of ruraleconomy and finance.(2) It demonstrates the key role and great significance of buildinga financing system of agriculture industrialization for promoting rural economicdevelopment and solving the "three rural issues". Among the "three rural issues”, thedevelopment of agricultural industrialization have important support and linkage effecton increasing farmer’s income and constructing rural urbanization, is also an essentialpart of solving the "three rural issues”. On the other hand, the rational allocation offinancial resources and the scientific construction of financing system of agriculturalindustrialization play a leading role in promoting the development of agricultureindustrialization; therefore, support and encouragement for the sustainable increase offinancial demands of agricultural production, effective allocation of rural financialresources, become the core function of the financing system of agriculture industrialization.(3) It explores the paths and organization models for the developmentof agricultural industrialization, and financing system refers to different stages ofdevelopment and different organization models. In the bud stage, the financing systemshould be based on small business financial institutions mainly, supplemented byfinancial policy support; in the initial stage of development, the financing system shouldbe based on cooperative finance, supplemented by policy and commercial finance. Inthe stage of rapid development, we should construct the financing system of agriculturalindustry chain with leading enterprises as the core, which is based on commercialfinance and supplemented by policy and cooperative finance. At the mature stage, thefinancing system should be based on direct financing, raising funds mainly in capitalmarket, supplemented by policy and commercial indirect financing. The organizationmodel of vertical integration (company+base+farmers) appears in the third stage ofthe development of agriculture industrialization: financing system should be based oncommercial finance, supplemented by policy finance and cooperative finance. In theorganization model of horizontal integration that financing system takes, the financingsystem should be based on cooperative finance, supplemented by policy andcommercial finance.(4) According to historical data, Firstly, the paper empiricallyanalysized the relationship between the level of agricultural industrialization and ruralfinancial support; Secondly, it makes empirical analysis of the efficiency of ruralfinancial resources allocation and factors that affect the efficiency, and provides dataand theoretical support for policy recommendations as well.(5) Based on learning fromthe foreign experience in constructing financing system of agriculture industrialization,it analyzes the problems of rural financial system construction in depth, then givespolicy suggestions that systematically constructing financing system of agricultureindustrialization refers to the different stages and areas, optimizing financing system ofagriculture industrialization and promoting the healthy development of agriculture andrural economy.The innovation of this paper demonstrates as follows:(1) The innovation oftheoretical basis and research perspectives: based on the theory of financial resources, itpreliminarily constructs the theoretical framework of the financing system of agricultureindustrialization, provides a new theoretical basis and perspective for the work of ruralfinancial system research and construction.(2) The innovation of empirical analysismethod: Firstly, based on26China agricultural industrialization in2007-2011paneldata related to the rural financial support, the paper analysed the positive correlation between the industrialization of agriculture and the rural financial support; secondly,this paper makes empirical analysis of rural financial resources allocation efficiencybased on DEA-Malmquist analysis and empirical analysis of factors affec ting ruralcapital allocation efficiency based on Tobit model and fixed effects model, whichreveals the regional differences in the efficiency of rural capital allocation and itseffecting factors, then provides data support and instruct direction for further optimizingthe allocation of rural financial resources.(3) The innovation of measures andsuggestions: Based on the combination of theoretical analysis and empirical analysis,the paper obtained relevant conclusions that, the basic way to solve the weak quality ofagriculture and financing problem is play a role of financial guidance, and thensystematically proposed strategy that guided by the finance to promote agriculturalindustrialization development, adhering to the inclusive finance concept, in order tosatisfy the demands of agricultural industrialization development as the guide,combining "bottom-up" and "top-down" systematically construct the financing systemof agricultural industrialization.