Study On Financial Support To Shandong Agriculture Development

Agriculture is the foundation of national economy. The production level of agriculture determines the development of overall national economy. So focusing on solving the problem of agricultural development funds is an important guarantee to promote steady growth of agriculture. Agriculture is the foundation of Shandong province, the development of which not only decide the per capita net income of farmers but also the sustainable development of the economy. Now the rural financial system’function is not fully, the farmer and agricultural firms lack funds to promote agricultural development. So improving the rural financial environment and effective integration of financial funds resources into agricultural industrialization and the development of agricultural, we must improve the rural financial market for agricultural development.Based on the theories of financial support for agricultural development, this study analysis the present financial needs and supply of agriculture. We find that the capital demand of agricultural development increase gradually and imbalance, financial transaction cost is higher. And bank credit is the main solving funds, agricultural insurance coverage will still need to expand.and fiscal subsidies need strengthen, etc. So agricultural development need the support and protection of rural financial institutions, and the effective supply of rural finance is the important force to promote the development of agriculture.There are many problems of finance supporting agricultural de partment:impcrfections in rural financial service;weakening of supporting agriculture function of rural financial institutions and serous outflow of rural funduhe rural credit management system needs further consummation;absence of agricultural insurance.So we must take method choice to improve the development of rural financial services:expand the policy bank"agriculture-rclated business;strengthen rural financial supporting function;perfecting credit management system and accelerate the innovation of rural financial tool:strenthen agricultural insurance services.