Research On Financing Strategy Of Farmer Professional Cooperative In Support Of The Government

The fanner specialized cooperative in China is an important agricultural industrialization organization mode. As a direct organization representative of farmers’interests, a ribbon connecting farmers with market intermediary, it experienced a long-term exploration, and formed in large-scale and low-level development of agriculture industrialization. It aims to solve the contradiction between the small farmers and big markets. Now it plays a more and more important role in reducing the risk of farmers to participate in the market competition and developing "Agriculture, Farmer and Country". China has implemented "Farmer Cooperatives Act" and introduced a series of supportive policies to promote the development of cooperatives in recent years. These policies have covered the financial, tax and other aspects. However, China still has many problems, such as imperfect legislation, inadequate financial support, and the un-established credit system. Simultaneously, it does not create a non-governmental public institutions to serve farmer specialized cooperative. Fanners are still under pressure. The developmental levels are different for farmer specialized cooperative in different places. Just because of the character of public goods, the natural risk and the marketing risk of farmer specialized cooperative are bigger than other industry. So it dose not have an independent life absent strong government support.The developed countries have rich experience in solving the financing problems of farmer specialized cooperative. They have generally established a perfect defective system, formed a stable guarantee, and provided generous government financial contributions. Some countries have also established a special service of farmer professional cooperative organizations to provide financial support or reduce the threshold of farmer specialized cooperative of direct financing. Above all effectively promote the healthy development of farmer specialized cooperative. Farmer specialty cooperative can make up the deficiency of market regulating and government controlling to some extent, but not completely. Compared with the enterprise, farmer specialty cooperative and the government have become more closely, but they must be separated in the process of operation. In this situation, the solution of this problem is to establish an effective rural financing system and the good rural finance ecology environment together.After presenting literature review on the related findings both at home and abroad, the author defines the important concepts in the study, collates and summarizes the relevant theory, puts forward new function orientation for the capitalization of farmer specialty cooperative which as the basis of this research.At the same time, investigations were taken among more than19towns through web inquiry, telephone interview and field visit. The author had communicated with more than80members and50managers. Though the first-hand data, we can research the internal and external factors. Based on the comparison and analysis of foreign and domestic experiences and inspirations, the paper proposes several advices for improvement.This article suggests that the government should have changed its conception and adjusted their role and position. It is either "a coordinator", but more often than not "a service man". On the one hand, the government should consummate the legal regulation on financing of farmer specialized cooperative to provide solid judicial protection. One the other hand, it is necessary to enhance the government’s management function and strengthen the government public administration. The financial sector should provide better financial services to support farmer specialized cooperative, especially by providing it with more financial support. Meanwhile, the government should strengthen the education and training, standardize the internal system construction and measures to promote the development of specialized farmers cooperatives.