Sustainable Development Of Agriculture And Financial Support In China

China has only7%of the total farmland of the world. However, it feeds up22%of the whole population all over the world. Two thirds of the population of our country is agricultural. The sustainable development of agriculture industry has close relationship with daily life of residents. In modern economy system, financial system acts the basic role in resource distribution, especially in capital allocation. So, it is valuable to discover the approach about achieving improvement in agriculture using financial service.This research is mainly based on theory on sustainable development of agriculture industry, H-O Theory and environmental bearing capacity theory. The article analyses the condition of financial system supporting the sustainable development of agriculture industry, especially in terms of Shandong Province, discovers problems from it and comes up with policy suggestions, such as developing new kinds of rural financial institutions, farmland trust and agriculture security—with the farmland trust being the main solution.This article contains7sections:No.1to illustrate about sustainable development of agriculture industry and the influence of financial system; No.2to summarize the research, home and abroad, from three angles—influence of policy on agriculture, study on sustainable development of agriculture and the effect of financial support on agriculture, and to illustrate the approaches to study about this theorem, coming up with the method used in this article; No.3to identify sustainable development of agriculture; NO.4to detail current situation and problems of financial system in supporting agriculture; NO.5to propose policy suggestions, such as developing new kinds of rural financial institutions, farmland trust and agriculture security; No.6to establish an assessment system to describe the level of agriculture development and to empirical test relationship between agriculture and financial system, using fixed effect model on data of27province, from2000to2009; No.7to point out drawbacks and to put forward prospect on further study.