The Change Of Farmer’s Lending Behavior And Its Income Effect Under Dual Financial Conditions

The implementation of the rural revitalization strategy is a major strategic decisionmaking and deployment of the 19 th National Congress of the Communist Party of China(CPC),which is the important historical task of building a moderately prosperous society in all respects and realizing the modernization of agriculture.Finance is not only the core of modern economy,but also one of the key links in serving the rural revitalization.The No.1 Document of the Central Committee in 2019 proposed to open up all links of financial services,such as agriculture,rural areas and farmers,which fully reflects the importance of financial services and the urgency of deepening financial reform and improving financial services.The problem of increasing farmer`s income is not only the key point to deepen the rural financial reform,but also the key point to promote the development of agriculture,the stability of the countryside and the well-to-do of the peasants.Therefore,in the context of rural revitalization,it is necessary to study the three agricultures of financial services from the key points of rural households,the basis of Chinas rural economy and society.For farmers,obtaining loan funds from financial institutions can optimize the asset allocation of households,grasp the market opportunities of production and operation,and improve household income in the short term.This is the most important factor that affects the household income.On the other hand,it can also invest the loan funds into the consumption expenditure of daily life,smooth the consumption and reduce the excessive defensive savings,so as to realize the goal of maximizing the household utility of peasant households.This paper is based on the loan investment in the current period.But at the same time,farmers in rural areas are generally faced with credit constraints,that is,farmers who have loan demand are constrained by their own conditions,and it is difficult to obtain loan funds from formal financial institutions.To a certain extent,credit restriction has become an important factor restricting farmer’s income growth.Therefore,farmers who need to borrow can improve the rural financial supply from the angle of improving the rural financial supply,reducing the threshold for farmers to enter the formal financial market,and optimizing their borrowing behavior.Through the above analysis,we find that the loan scale of peasant household is the core of farmers loan behavior,and the loan channel is the source way of farmers loan behavior,and the use of farmers loan is the expenditure way of farmers loan behavior,The loan scale of farmers,the loan channels and the loan uses of farmers are different latitudes to reflect the loan behavior of farmers.Therefore,the research on the loan behavior of farmers needs to consider from three aspects,namely,the loan scale of farmers,the loan channels of farmers and the loan uses of farmers.Based on this,this paper studies the relationship between farmers borrowing behavior,farmers borrowing behavior and income from the theoretical and empirical perspectives.First of all,this paper theoretically analyzes the mechanism of the choice of loan channels,the scale of loans and the use of loans,and theoretically expounds the relationship between the borrowing behavior of farmers and their income.Secondly,using the econometric model,this paper analyzes the factors that influence the choice of farmers borrowing behavior and the relationship between the borrowing behavior and their income with the data of the national fixed observation points of the ministry of agriculture and rural areas from the empirical point of view,This paper not only studies the relationship between the borrowing behavior of farmers and their income,but also the differences of the borrowing behavior of different types of farmers and the influence of the borrowing behavior of farmers on the income of different types of farmers under the condition of binary finance.Finally,this paper not only proves the lag effect of farmers borrowing behavior on his income in theory,but also validates the lag effect of farmers borrowing behavior on his income from the empirical point of view.Through theoretical analysis,statistical descriptive analysis and empirical analysis,the paper draws the following conclusions:First,statistical descriptive analysis.The ways of choosing loan channels of farmers are various.There are inflection points in the scale of loans,the uses of loans and the household income of farmers.The higher the level of regional economic development,the more the local farmers prefer to borrow from informal financial institutions.The loan uses of the farmers in the South are mainly for production investment,while those in the North are mainly for living expenses.The income and agricultural income level of the peasant households in the eastern and western regions are relatively high,and the non-agricultural income of the peasant households in the southern areas is higher than that of the northern households.The family income of the non-loaned farmer is higher than that of the loaned farmer,and the income of the single-loaned farmer is higher than that of the multi-loaned farmer.Second,the analysis of the choice of loan channels for farmers.The higher level of rural financial development and social capital is,the higher the probability of farmers borrowing behavior.The higher the level of rural financial development and farmers social capital,the higher the level of rural financial development and farmers social capital will make farmers borrowing channel shift from informal financial to formal financial,The rich households in the areas with higher financial development level have more easy access to credit than the poor ones.The social capital of the farmers mainly affects the choice of the medium-sized farmers and the poor farmers,and has less influence on the choice of the rich farmers lending channels.Third,the analysis of farmer`s loan scale choice.The wealthier the household assets and social capital are,the bigger the scale of the loan.When financial institutions lend money to farmers under the same conditions,the first consideration is the assets owned by the farmers families,The family assets and social capital of peasant household have great influence on the well-to-do farmers,and the family assets and social capital of peasant household mainly affect the loan scale of the pure farmer,but the influence to the other farmer is relatively small.Fourth,the analysis of farmer`s choice of loan uses.The more assets a farmer family owns,the more the farmer is inclined to produce loan.The higher the level of household consumption expenditure,the more the households spend on living,and the wealthier households prefer production-type lending,poor farmers prefer living loans.For pure farmers,the larger the cultivated land area,the more preference for production loans.Those who borrow from formal financial institutions are more inclined to use loan funds for production investment.Fifth,the impact of farmers borrowing behavior on his income.The bigger the loan scale of farmers,the higher the household income level;Farmers obtain loans from formal financial institutions to improve their household income level;Whatever the expenditure,the loan funds of farmers can increase their household income,but the loan funds can be used for productive investment more effectively to increase their household income.The influence of using loan funds to spend on household nonfarm income is relatively great,and the effect of using loan funds for production investment on household agricultural income is relatively great.The empirical analysis shows that the influence of farmers borrowing behavior on his income will lag behind to five periods.The loan behavior of farmers has a relatively greater impact on poor farmers and farmers who borrow from formal finance;Affluent and middle-income farmers use their loan capital for livelihood purposes to increase their household income,while poor farmers use the loan capital for productive purposes to increase their household income.The conclusion of the research shows that there is loan demand in any case,but there is significant difference between different types of farmers loan demand.The loan behavior of farmers can significantly improve their family income level.Based on this,this paper puts forward eight policy enlightenments from the angle of promoting the development of rural financial market,optimizing the borrowing behavior of farmers and increasing their income.