A Study On The Support Of Agricultural Policy-based Finance In Urbanization Process

Since the reform and opening up, China’s economy developed rapidly, the urbanization rate increased from 17.92% in 1978 to 53.78% in 2013. Especially since 1996, China has turned into the period of rapid urbanization, the urbanization rate increased by 1.38% per year, and in 2011 for the first time reached more than 50%.By 2020, the urbanization rate will exceed 60%. In the process of rapid urbanization the "three rural" is undergoing significant structural changes, what changes will occur in rural financial needs? What changes in the supply and demand structure of agricultural policy-based financial system will occur? Whether it’s balanced or not? How to improve the support for agricultural policy-based finance? Therefore, with reality, reaching on the way of improving the support for agricultural policy-based finance in urbanization process not only helps to enrich its theoretical system, but also has important practical implication on the efficiency improvem ent.The basic proposition of this paper is that rapid urbanization in China will lead to a fundamental impact on the"three rural"structure.We must proceed from the reality and trends of the changes in"three rural"structure, to improve the ways of support for agricultural policy-based finance, to exert and advocate the investment function of agricultural finance, to make mutual cooperation with rural commercial financial institutions, to optimize the rural financial system. By supporting agricultural policy-based finance, making up for deficiencies in the rural financial market mechanisms, guiding financial resources to reflux rural community rationally, improving the social rationality of the allocation of financial resources. The basic idea is: first, analyze the changes and trends of the "three rural" structure in China’s rapid urbanization based on the literature review and theoretical analysis; second, analyze the impact it leads to financial needs of agricultural policy-based. And summarize the characteristics of of the agricultural policy-based financial needs by a questionnaire survey. Then analyze and inspect into the supply and demand of agricultural policy-based finance whether the effect meet the needs of the "three rural" development through empirical analysis. Finally, according to the non-equilibrium analysis of agricultural policy-based finance system, propose ways to improve the support for agricultural policy-based finance, then form a conclusion.According to the basic propositions and ideas, the text’s structure are made by the following arrangements:The first chapter is the introduction, including several components of the background, purpose and meaning, current research, study ideal and technical path, research methodology and contributions, for the purpose of having a general understanding to the subject and content of the full text.The second chapter is reviewing and analyzing the theory of urbanization and policy-based finance. To propose analytical framework of support for agricultural policy-based finance in urbanization process and clear the basic proposition and basic ideas through reviewing the theory of urbanization and policy-based finance and rural financial development. Thus provide a theoretical support to the study and make it easier to get the structural context of the full text.The third chapter is the impact of urbanization on the "three rural" policy-based financial needs. By studying the impact of rapid urbanization on the "three rural" structure, food security and agricultural policy, analyzing the changes in agricultural policy financial needs. This is the part of raising the issue of the full text officially. First, make a basic judgment and prediction for China’s urbanization rate, then analyze the impact on the rural population structure and economic development, which explains that the relationship of farmer’s specialization, agricultural modernization and urbanization do exist. The success of agricultural modernization decides whether the urbanization can be sustainable. Farmer’s structure will be different, agricultural surplus farmers will be quickly reduced and the rest gradually achieve specialization. The mechanization rate and specialization degree of agricultural production will rise. The upgrades of agricultural specialization, the expansion of production scale and the supplying of rural public goods need the support of agricultural policy-based finance so much. Secondly, analyze agricultural policy-based financial needs from the aspects of national food security and the changes of agricultural policy, which explains that food consumption structure upgrading caused by urbanization will lead to a long-term increace of overall food consumption. While the reducing of arable land, degradation and so on will lead to an adversely affect on food security. Agricultural policy-based restructures in the main goal of ensuring national food security, the main supply of agricultural products and farmers’ income. The policy of supporting the food prices will be reformed, the policy of target price subsidy will be tried out. The new agricultural management system will be constructed, long-term mechanism for sustainable development of agriculture will be established, and thus the agricultural policy-based financial needs will be formed in the aspect of a gricultural resourcesprotection, the new agricultural management system construction, purchase and sale price of agricultural products and agricultural reserves.The fourth chapter and the fifth chapter of this article are to analyze the problem. The fourth chapter is the analysis of a questionnaire survey about the needs of agricultural policy finance in urbanization process. Thus know more about the needs of agricultural policy-based finance in urbanization process by taking a sample questionnaires and interviewing in part of the Jiangxi farmers, agriculture and rural field. Then summarize and analyze the demanding feature and impaction factors from different needs. The analysis of the survey shows that our farmers, rural businesses, county-level local government have a huge demand for agricultural policy-based finance in urbanization process. However, because of the imperfect rural financial system and commercial financial institutions didn’t make much support for rural economic development, expanding the financing channels for agricultural policy-based and scale is on urgent. The same to the changes of farmers’ production mode, transformation and upgrading of rural SMEs, promotion for urbanization in rural areas by local government.The fifth chapter is the analysis of financial supply in agricultural policy-based finance in urbanization process. There exists a weakening phenomenon in the supply of rural finance by analyzing the main source of rural urbanization in capital investment, the basic framework for the supply of rural financial services. Finding the reason of insufficient financial support for rural business, and reaching a conclusion that the policy-based financial support is necessary through both economic and policy factors analysis. Then use the data to make empirical analysis about the effect of agricultural policy-based finance, which proves that there exists a relationship between improving agricultural credit policy and agricultural output, so does the objective necessity of advancing urbanization exist. We must remove the weakening phenomenon in the supply of rural finance by transferring a large number of surplus agricultural populations, raising the level of agricultural modernization. Finally, analyze the limitations and adverse effects of the weakening phenomenon in the supply of rural finance. Then come to a conclusion that nonstandard positioning functions, the absence of co-existence with the offside, poor operation mechanism, imperfect institutional system, lagging behind of legislation are the reasons for the weakening phenomenon in the supply of rural finance.The sixth chapter is the analysis of finding a way to improve the support for agricultural policy-based finance in urbanization process, which is the part of solving problem in the text. Combining the demand and supply situation of agricultural policy-based financial system, the text proposes that the agricultural policy financial system is unbalanced and we can improve it in five aspects. First, with the objective of maximizing the social benefit, clear objectives and functions of agricultural policy-based finance, advocate agricultural finance investment, supports for agricultural price and production and so on. Then we can provide versatile and comprehensive financial services to the "three rural" development.Second, build rural finance mechanisms of coordinated development based on agricultural policy-based finance. Through the policy-based finance "set up the stage", attract commercial finance "act". Based on the advocacy of agricultural financial investment, coordinate and handle the relationship of agricultural policy-based finance and commercial finance, encourage the development of a variety of financial form. Third, innovate the way of support for agricultural policy-based finance, reduce the risk of agricultural operations, such as insurance business, futures business, guarantee business, risk investment business and agricultural trusts, asset securitization, financing and leasing business of agricultural policy. Fourth, improve the risk prevention mechanism of agricultural policy-based finance, establish a comprehensive risk management philosophy, improve the corporate government and build a long-term operation and management mechanism. Fifth, improve the mechanism of the support for agricultural policy-based finance, speed up the legislation of agricultural policy-based finance, establish a stable source of funding and risk compensation mechanism, build a financial supervision system suitable for agricultural policy-based finance.The seventh chapter is conclusion and expectation, which summarizes the full text, indicating the inadequacy and the direction of further study.Overall, this text combines the realistic background of rapid urbanization and the impaction of it on "three rural" structure, national food security and agricultural policy-based, uses the way of field investigation and questionnaire survey, normative analysis and empirical analysis, analyzes the changes in supply and demand of agricultural policy-based finance in urbanization process, thus make recommendations on improving support for agricultural policy finance.