A Research On The Financing Of The Agricultural Industry Chain Dominated By The Leading Corporations

In the context where the village economy develops very rapidly, the Three Agricultural Problems, namely the issues of village, farmers, and agriculture, have drawn wide attention from the society. It remains the central concern of the government to improve the income of farmers, promote the village economic development, and accelerate the agricultural development. However, the arisen problems during the agricultural development, including the low fund utilization rate, difficulty of financing of the financing entity, and high risk of financing, functioned as obstacles against the development of the village economy. The applicable pattern of the financing of agricultural industry chain, to a large extent, can remove the obstacles encountered during the financial development in the villages, and therefore break the limits of the traditional financing development pattern for villages, offering new solutions to the financing conducted in the villages in China.The first chapter of this research introduces the research background and significance firstly. It summarizes the flaws of the traditional financing approach in villages and explains the significance of the financing of agricultural industry chain dominated by leading corporations from the perspectives of farmers who are the financing entities, leading corporations, and financial institutions that serve as the fund providers. And further proposes research methodologies on the basis of the review over related researches on agricultural industry chain conducted previously. The second chapter of this research will be devoted to elaborately and theoretically introducing related theories, financing of the agricultural industry chain, and leading corporations. It proposes a pattern of the agricultural industry chain that is dominated by leading corporations, analyzes the operational mechanism, importance, and advantages of the agricultural industry chain, and then explains the value of conducting such research. Both the third and fourth chapters are introduction and analysis about case studies. In these chapters, outlines of the lead corporation and the farmers serving as financing entities will be formulated, the specific procedure on the financing of agricultural industry chain is analyzed, and the core of this pattern which should be based on the operation and credits of the leading corporations, and shoulder the responsibilities to guarantee financing for the financing entities is explained. Therefore, the remaining context mainly analyzes the SW Corporation in Anhui and its upstream and downstream operation, and the analysis in elaborately conducted on non-financial directions such as the production, sales, financial and industry situation, as well as the management respectively, thus demonstrate that the operation status and the credit of the corporation is in a favorable situation. On this basis, the corporations, as the core of the industry chain, will be able to provide guarantee for the financing entities depending on their own credits in order to get the loans from financial institutions. Finally, profound analyses over the problems in the case studies of this research will also be analyzed, and relevant solutions and policy advises are put forward to largely improve the financing of the agricultural industry chain dominated by leading corporations.