Study On Credit Availability Of Forest Right Mortgage Loan By Farmer Households

In order to deepen reform of collective forest rights, and to ease the difficulty in financingassurance of farmers and small or medium-sized enterprises, Forest Right Mortgage Loan is beenpublished across the country. The loan business innovation not only helps them effectively useforest and woodland property, promotes the structural adjustment of enterprises, increases incomeof farmers, but also realizes product innovation of financial institution, making financing channelmore widely.At first, we mainly discuss the feasibility, the necessity and the applicability of the policy. Atthe current stage, many scholars begin to pay close attention to the development of Forest RightMortgage Loan. Therefore, this article selects Huangshan Mountain area in Anhui province andZhejiang province Suichang country as the study sites, and employs typical case analysis andempirical analysis method to research the various factors which affect the availability ofpeasant’s household for Forest Right Mortgage Loan. According to the result of visiting research,in the theory research stage this article carries on the research about Wenxiang village HuangshanMountain area in Anhui province with a typical case study, attempting to build the hypothesisabout the availability of peasant’s household for Forest Right Mortgage Loan with qualitativeanalysis. Specifically, it includes natural resources; policies and regulations of the village; and thedemand, the development of Forest Right Mortgage Loan; the cause for this status quo in thesamples village; some conclusions and hypotheses. In demonstration section, this paper employsthe empirical analysis method to research the various factors which affect the availability ofpeasant’s household for Forest Right Mortgage Loan, in a quantitative way to validate relatedhypothesis.Based on the analysis above, the results show: Demand of peasant has something to do withNatural resources, policies and regulations of the village; Asymmetry information causes adverseselection and moral hazard, and financial institutions are organizations for earning profit, soForest Right Mortgage Loan by farmer households is implemented credit rationing. Weakdemand and credit rationing both lead to the phenomenon of the low availability of peasant’shousehold for Forest Right Mortgage Loan. In addition, determinants of the credit availability forthe collateral loan by farmer households mainly included personal characters (age, occupation) ofmain members in household, non-farm expenditure of households, number of forestland, area ofcommercial forest. Thus, the proposal should be put forward by strengthening the flexibility ofthe relative policies about Forest Right Mortgage Loan; relaxing business restrictions of themortgaged property; establishing and improving credit mechanism; improving farmerhouseholds’ own internality construction, strengthening the service innovation about Forest RightMortgage Loan.