A Study Of Financing Systems On China’s Family Farms

At present,under the background of the national rural strategy from poverty alleviation to rural revitalization,the commercialization and scale of family farms are increasing.These farms in land consolidation,land circulation,land leasing,purchase of agricultural materials,purchase of agricultural machinery,improve the production facilities,pesticide use,straw processing,sales of agricultural products and so on hiring temporary helper needs a lot of money,because the family farm in China was still in the stage of cultivation,the lower their own capital,and financial strength is limited,have a strong demand for loans.At the same time,these farms are faced with many difficulties,such as high natural risk and management risk,low return on investment,unclear farm property rights and creditor’s rights,and unclear farm assets and personal property rights.Under the restriction of basic factors such as the particularity of farmland and the weakness of agriculture,it is generally more difficult for family farms to obtain loans,which restricts and restrains the large-scale development of family farms.Based on the existing research results of scholars,using empirical analysis,comparative analysis and literature analysis,this paper systematically analyzes the current family farm financing system supply problems and ways to improve.This paper takes the financial system as the research background,the family farm financing system as the specific research object,follows the research idea of "theoretical research-empirical research-policy research",takes the problem as the guidance,and follows the path of finding,analyzing and solving problems.The mechanism of financing system supply effect,the existing problems,and the realization way of optimizing financing system are researched deeply.Specific research contents include:first,family farm financing practice and system review.Firstly,it analyzes the financing practice of family farm from the perspective of financing demand and supply.Second,through the normative analysis and quantitative analysis of system text,the author combs the present situation of Chinese family farm financing system supply and reveals the problems existing in the present system supply.Thirdly,it analyzes the influence of the family farm financing system on the family farm financing effect from macro and micro perspectives,and clarifies and discusses the influence mechanism and action path of the financing system on the family farm financing effect.Second,the empirical test of the current financial system on the development of family farms.The first is the impact of the current financial system on the financial efficiency of family farms.The DEA-Tobit model was constructed,and the data envelopment analysis method was used to evaluate the financial efficiency of family farms in China.The Tobit model was constructed using the provincial panel data to analyze the impact of family farm financing system on the financial efficiency of family farms.The second is the impact of the current financial system on the transaction costs of family farms.Using transaction cost theory,this paper constructs multiple linear regression model to analyze the role of arrangement of family farm financing system in the operation of family farm borrowing.The main conclusions of this paper are as follows:(1)Review of the practice and system of family farm financingReview of the financing practice of family farms: The financing demand of family farms is characterized by large amount and diversification,but the current fund supply is far less than the demand for funds,and the contradiction between supply and demand of funds is prominent.Specific performance in: Consideration of the family farm resources and financial institutions to pursue high profit margins didn’t match,family farm large diversified demand and financial institutions loans varieties of small single don’t match,weak rural credit system and financial institutions strict credit system does not match,the family farm insufficient collateral,which is mainly composed of mortgage loans to financial institutions require high risk and the bank don’t match,the family farm Loan risk prevention and control requirements do not match,family farm ownership is not clear and financial institutions do not match loan responsibility requirements.This state of unbalance between supply and demand will increase the cost of information asymmetry,search cost,negotiation cost,post-transaction supervision,performance litigation cost and interest rate cost.Review of family farm financing system: From the perspective of the current situation of the supply of family farm financing system,the family farm financing system introduced in China from 2013 to 2015 is in a slow upward trend,but the supply of family farm financing system decreased year by year from 2015 to 2020,indicating that the financing system has been basically formed after a certain stage of intensive introduction.From the analysis of the change of the law system of national policy finance,cooperative credit cooperation,commercial finance and agricultural insurance,we found that there are still some problems in the system of family farm financing,and the financial security function of family farm is more limited.(2)Empirical test of the current financial system on the development of family farmsThe influence of the current financial system on the financial efficiency of family farms: using the DEA-Tobit model to measure the financial efficiency of family farms in China,the result shows that the financial efficiency of family farms shows a downward trend.The Tobit model was constructed using the provincial panel data to verify the impact of financial support,agricultural insurance,credit financing,mortgage pledge and credit guarantee system on the financial efficiency of family farms.The analysis showed that: Financial support,credit financing,mortgage pledge,credit guarantee and agricultural insurance system have a significantly positive impact on the financial efficiency of family farms.The influence of the current financial system on the transaction cost of family farm financing: the principal component analysis method is used to extract the two principal components that affect the transaction cost of family farm financing,namely,the external factors that change at the national level and the internal factors that change in agriculture itself.Through the construction of multiple linear regression model analysis,the following results are obtained: With the change of family farm financing system,the absolute transaction cost of family farm financing will rise,while the relative transaction cost will decrease with the increase of loan balance.Accordingly,based on the consideration of government and market and the development of inclusive finance,the thesis puts forward the suggestions to perfect the family farm financing system from the four dimensions of national policy finance,cooperative credit cooperation,commercial finance and agricultural insurance: One must perfect the policy finance legislation.Establish the principle of policy banks not making profits,establish a stable source of funds,improve the preferential policies of policy financial institutions,clarify the use of policy funds,explore policy guarantee business;Second,we should perfect the legal system of cooperative credit cooperation.Establish risk control system,supervision responsibility mechanism,cooperative credit union system;Third,we need to improve the commercial loan mechanism.Innovative financial products and financial services,establish the financial credit information sharing mechanism,optimization of mortgage guarantee way,to set up the guarantee system of agriculture and improve the agricultural product futures market,widen the right mortgage guarantee,broaden the rural housing and land in a fixed property mortgage transfer of agricultural facilities,improve the rural market assessment of the real rights for security risk and trading system,the marketization compensation mechanism,pushing Into the rural credit system construction;Fourth,we will improve the agricultural insurance system.We will improve legislation on agricultural insurance,create new types of insurance,establish bank-insurance interactive policies,establish mutual and cooperative insurance organizations,improve the mechanism for dispersing catastrophe risks,and raise the level of security for family farms.Through the improvement of the above legal systems,the transaction costs of family farms can be reduced,the development of inclusive finance can be promoted,and more financial funds can be invested into family farms,so as to fundamentally solve the financing problems of family farms and realize the reform goal of "diversified,multi-level,wide coverage and sustainable" financing of family farms.The innovation points of this paper are as follows :(1)in terms of research content,the focus is on improving the system of policy-based financing,cooperative credit cooperation financing,commercial loan and agricultural insurance,and the family farm financing system is put forward in a relatively complete and systematic way,which improves the realistic value of the research conclusions;(2)In terms of research methods,the theory of law and economics is used to analyze the deep-seated causes of financing difficulties of family farms from multiple perspectives,so as to lay the foundation for putting forward legal opinions;Using the empirical research method,the family farm financing system is taken as the core explanatory variable,and the DEA model,Tobit model and multiple linear regression model are constructed to empirically study the financial efficiency of family farms in a progressive way,and the impact of family farm financing system on the financial efficiency and financing transaction costs of family farms in China.The empirical results of this paper are more general and representative.