An Analysis Of The Factors Affecting The Credit Availability Of Farmers' Specialized Cooperative

Farmers'specialized cooperatives can unite farmers together, improve the degree of organization of farmers, reduce production costs and transaction costs, also improve the bargaining position of the farmers in the negotiation and the ability to withstand risks, and enhance the market competitiveness of agriculture.With the implement of "the Law of Farmers'Specialized Cooperative", the external environment becomes better, and farmers' specialized cooperatives develop rapidly. However, the overall quality of cooperatives is satisfactory, such as mall,scatter weak problems, especially the problem of financing constraints has become the biggest threat. Although a large number of Cooperatives can't obtain loans from formal financial institutions, still some Cooperatives can obtain it. This phenomenon prompts us to think:What are the factors that affect the availability of formal credit? In order to ease or solve this problem, how should the cooperatives do? To solve the above problems, the key is to understand the current condition of funds need, find out the internal mechanism of the availability of formal credit, and seek to find the factors that affect it. Therefore, it is both theoretical and practical significance for us to analyse the factors affecting the availability of formal credit of farmers'specialized cooperatives, which is helpful for us to improve the cooperatives to become larger and strong.For the reasons above, this paper firstly reviews the literatures about the credit theory of farmers' specialized cooperatives and the factors affecting the credit availability of farmers'specialized cooperatives in the domestic and foreign. Secondly, considering the cooperatives' actual situation in China, the paper constructs an empirical analysis frame about the factors affecting the formal credit availability of farmers'specialized cooperatives. Finally, use the research data of 285 cooperatives of Zhejiang Province, and do empirical study. The results show that, cooperatives' credit will is strong, but a larger number of cooperatives can not available it, because of the credit rationing implemention by the formal financial institutions. The cooperatives' fixed assets credit rating,relationship with the bank, the development level of cooperatives influence credit availability significantly Based on the empirical results above and in order to improve the availability of formal credit, the following points are given. First, the government must increase the supply of formal credit funds to rural organizations including cooperatives. Second, cooperatives must strengthen the construction of organization,the improvement of management system and profit ability, especially the accumulation of capital. Third, we must expedite the development of mortgage guarantee and insurance mechanisms of Farmers'specialized cooperatives. At last, give some support policy to financial institutions which provide credit to cooperatives.