Analysis Of The Support Of Rural Finance For The Development Of Agricultural Modernization

Rural finance is the core of agricultural modernization development.Its key role is to accelerate the flow of agricultural production factors,connect capital supply and demand subjects,promote the rational allocation of rural resources,and maximize the growth of agricultural output and farmers' living standards.In recent years,the development of rural finance and agricultural modernization has progressed rapidly,and the role of financial support for agriculture has been obvious,but there are also many problems exposed.The first is the imbalance between rural financial supply and demand.The economic development in rural areas has been in a state of being “exploited” for a long time.The long-term existence of rural capital scarcity hinders the development of rural economy.The second is the problem of rural financial repression.Agricultural production obtain itsfunds mainly through the financial institutions such as banks.With the transformation of the commercialization of rural financial institutions in recent years,a large number of grassroots outlets have been abolished,and the enthusiasm of commercial capital to enter the rural market is insufficient.The rural credit cooperatives are “difficult to support” and government financial support is also very limited.Finally,it is the problem of rural financial support utility.The development of rural finance plays a role in agricultural modernization through a certain mechanism of action.It's an urgent to research how to maximize the effect of financial support for agricultural modernization.Based on the relevant theories of finance and industrial economics,this paper analyzes the mechanism of rural financial support for agricultural modernization by combining qualitative analysis and quantitative analysis.By establishing a time series model of indicators related to rural finance and agricultural modernization,and using Cointegration analysis and Granger causality test and other methods This paper verifies the correlation between rural finance and agricultural modernization development in Ankang City,and explores how rural financial indicators such as rural financial level,rural financial structure and rural financial efficiency act on agricultural production and the income of farmers,which in turn affects the development of agricultural modernization.The research shows that the development of rural finance in Ankang has a significant correlation between agricultural output and farmers' income.The increase of rural financial scale and the optimization of rural financial structure in Ankang City are beneficial to the rural economy,but the overall financial development level and the improvement of rural financial efficiency in Ankang City are not significantly promoting the development of the rural economy.In general,rural finance has a prominent role in supporting agriculture,and raising the level of rural finance is conducive to the development of modern agriculture.At the end of the paper,relevant suggestions are put forward to solve these problems of the balance between rural financial supply and demand balance,rural financial suppression and agricultural support efficiency.