Microfinance And Farmer's Behavior Choice

It is an important problem for the development of rural economy that how to lend to farm households. And it is also a challenge for governments in all countries. The practice and development of rural microfinance, which are hopeful to play an important part in rural finance in the future, offer a brand-new thinking for solving this problem. With a view to innovative finance, based on the practice experience of microfinance abroad and the current situation of our country rural area, this paper studies the possibility and necessity of rural microfinance from the aspect of farm's borrowing and using behavior, and also discusses the relation between rural microfinance and agricultural industrialization. Meanwhile, based on the surveying data on the spot of Zhejiang Taizhou rural area, the thesis applying the binary Probit discrete model analyses the influencing factors of farmers'borrowing behavior, and finally summarizes the problems of rural microfinance development according to preceding researches, and then gives some suggestions.Main conclusions of this paper are as follows:1.As the beginning of the rural microfinance in China, it will perform an important function in rural finance. It is a necessary choice to set up new idea of developing rural microfinance, and it also adapts to the development of rural finance in China.2.Based on the research of Taizhou farm household data, the conclusion is there are many credit demands in the country, most of which are micro-credit. And the conclusion from the analysis to influence factors of the credit demands is that the experience acquiring loans and the anticipation that they can obtain loans from formal financial institutions have significant positive infulence to the credit demands of farm households.3.The farm households debit and credit behavior indicates that the farmer's apt to private credit is rational choice based on reducing deal cost. Therefore we must take reducing business cost as starting point and corresponding supporting measures as guarantee, if the rural microfinance wants to obtain commercial sustainable development.4.The normal finance punishment principle indicates that the small loan and the inspirit of repeating the acquisition loan have successfully overcome information constraint and moral hazard on rural credit marketplace. The design of our microcredit should learn from above operation mechanism, fully utilizes popular floating capital, and brings various organizations effect in it at the same time.5. The inborn weakness of agriculture demands corresponding mechanism to compensate credit risk. But the defectiveness of risk mechanism in the reality has greatly impaired the microfinance supporting agriculture. Therefore it's extremely urgent to establish mechanism of agricultural credit to compensate for risk.6.Because of imperfect laws and statutes, the rural microfinance has grave supervisory problems at present. Thus we should accelerate institutional innovation to build fine environment for the microfinance.Main innovations of this paper are as follows:l.The thesis bears one innovation which is based on the farmer's credit behavior choice to research microfinance and turning the angle from aiding the poor to rural finance innovation.2.1t's new to adopt demonstration analysis method which obtains information data from farmer's credit of Taizhou and expounds the influencing factor of farmer's credit behavior roundly.