An Research On The Operational Mechanism Of Rural Land Finance From The Perspective Of Differentiation Strategy

Due to the particularities of Chinese rural financial market, general commercial banks and other financial institutes are reluctant to loan to farmers. In addition, the private capital lending cannot meet the need as well, since its own limitations. The long-term shortage of funds leads to discontinuity in production. The average farmers can only maintain the traditional simple reproduction and the agricultural intensive management is at a low level. Therefore, some academics suggest promoting the investment of credit funds and the development of Chinese agriculture by constructing the rural financial system. In order to adapt the different financial demands of the regional economic development in rural areas, regional differentiated farmland financial operation mechanisms should be established.This paper is based on the theoretical framework of interactive relationship between farmland finance and regional comparison, the dissertation analyzes current situation and exiting problems in building of farmland finance institution. Then it analyzes the cause of the exiting problems before. After learning from the lessons of developed countries and area, it has explored and constructed farmland financial operational mechanism from the perspective of differentiation strategy, including organizational framework, product system and pricing model. Finally, it gives some corresponding suggestions.The result of the research shows that there is no "universal model" for financial operation mechanisms of the rural land. Different regions have their own characteristics and the key is whether it can meet the financial service demands that the regional rural economic development has, or not. Under the differentiation, the construction of China's rural land financial operation mechanisms should be considered with some basic points. From the perspective of farmland financial institution, in developed rural area, adopting from government support, joint-stock commercial bank which is marker-oriented will be recommended, such as land bank; in central area, rural credit office will maintain the land financial institution;the west land financial institution will be conducted by support, such as rural credit office and the Agricultural Development Bank. From the point of land financial product, depending on the inclination of policy and development, the east should use the high-level one, such as land trust, land security based on mortgage rural land and bonds of rural lands, the middle and the west should establish the rural land stock, the loan and social security fund based on division of land income. All in all, we should promote the rural land reform from land transfer market, government support, market access, monetary policy, and tax advanced.Compared with previous studies, the contribution of this paper is theoretical targeted, comprehensive perspective of operating mechanism, the novelty of the pricing. (1) Farmland financial operational mechanism, we analyze the regional differences from the organizational structure, products, systems, pricing model, overcome the limitations of a single perspective. (2) Theoretical research, we apply finance and land economics to construct farmland financial operation mechanism, to provide the overall framework for regional financial operation mechanism of farmland. (3) Pricing, this paper takes into account the special nature of financial products, makes the empirical analysis of underlying mortgages of land assets, analyzes pricing models of mortgage bonds of rural land, and innovates the pricing of mortgage rural land.