Research On The Farmers’ Professional Cooperative Financing In Gansu

The introduction and development of Farmer’s Specialized Cooperation gives a furtherimprovement for rural double-tier management system that combines unified and separateoperations. However, at the present stage, the farmers’ professional cooperatives faced withshortage of funds, the financing problem, which restricts the further development ofspecialized farmer cooperatives. Professional cooperatives started late in Gansu province, thenumber of cooperatives increased rapidly, there are1008in2005, increased to7559in2011,the average annual increase of1092, average annual growth rate of49.1%. Industriesinvolved in farming, aquaculture, fisheries, forestry and other industries. But in thedevelopment of cooperatives, there are difficulties in financing of cooperatives, small-scale,asset-liability ratio is low, overall driven ability is weak and many other issues. Among them,the financing problem of the cooperatives is a major bottleneck restricting the development ofcooperatives. So, to study the financing problems of the farmers ’professional cooperatives,analyze the factors that constrain the financing and propose recommendations to solve thefinancing problem, It is of great significance to improve farmers’ income, promote theindustrialized operation of agriculture and promote the development of modern agriculture.The study investigated the demand of funds and the financing situation in the last threeyears of provincial model cooperatives of12cities in July to August2010and January2011,which are Lanzhou, Dingxi, Tianshui, Zhangye, Wuwei, Pingliang, Qingyang, Longnan,Baiyin, Jinchang, Jiuquan, Jiayuguan. The study sent out more than166questionnaires, andthe effect questionnaires are160copies.According to the statistical analysis of the questionnaire, the results showed that99.36%of the cooperatives there are demand for funds. The cooperatives accounted for67.92%,which financing be used for investment in fixed assets and purchase of agriculturalproducts, for agricultural materials procurement, cost of sales, other uses of the cooperatives,respectively accounting for24.17%,6.25%,1.67%. Inner financing and exterior financingcapacity is weak in Gansu province. At the inner financing aspect, the registered capital ofcooperatives is less, the cooperatives which registered capital is no more than0.5millionaccounted for59.22%; initial capital stock is more difficult to raise, only38.34%of the sharesof the cooperatives is in cash, the non-cash shares accounted for up to61.66%, such asproperty rights, land contract rights, forest rights, technical and others; the capacity ofincreasing shares of members is limited, the scale of the increased capital is smaller, thecapital no more than0.5million of cooperatives accounted for up to79.7%; Lack ofprofitability and accumulation functions, leading to a serious shortage of their ownaccumulated, the cooperatives which surplus reserve balances below500,000accounted for up to96%. At the exterior financing aspect, it is difficult to obtain loans in the name ofcooperative, cooperatives obtain loans in the name of president, or usually only get3-5million micro-loans in the name of the farmers; cooperatives obtained loans on behalf of thepresident which accounted for63.08%; government support is not enough; the cooperativeswhich private financing from rich families and a large farming which accounted for71.9%,cooperatives to provide credit guarantees, which accounted for50.94%, third-party guaranteesand mortgage-backed cooperatives, which accounted for49.92%, private financing channelsis not stable, it is difficult to meet the financial needs of cooperatives.In the funding process, there are main factors restricting the financing of cooperatives:the level of economic development of Gansu is low, and the ability to support cooperatives isweak; the force of law of cooperatives is not strong; the internal management system ofcooperatives is not perfect; the exterior financing environment is poor.For the above constraints, given the following suggestions: cooperatives must strengtheninternal management; do training activities, cultivate the outstanding management personnel;joint-stock cooperative system can be adopted, to enhance the ability of inner financing; toaccelerate the pace of mortgage pilot of the land contract and management rights, to solve thedifficult problem of rural credit; great efforts to develop micro-finance institutions, to regulatethe private lending; increase the government’s efforts to support.