Research On The Impact Of Wage Income Of Farmers Increase Demand For Financing

Since the reform and opening three decades, our country especially rural area has changed a lot. Agricultural, rural and farmers problem, whose base is increasing farmer’s income, are the basic problems of our country recently. With the transfer of rural labor to cities continues, wage income occupies an increasingly important position in the composition of farmers’ income. This change in the structure of household income had a profound impact on household economic activities and even life style. With a minimum investment to maximize revenue, farmers achieve sustainable development of the family. Improving wage income of farmers is an important way of increasing farmers’ income. Also, farmers finance is an important part of rural economic activity. It is of great significance to know the wage income of farmers in Hunan Province.This paper is based on the theory of the factors of production distribution, agricultural credit subsidies on the rural financial market theory, imperfect competition theory. Using two logic (Binary Logistic) regression model to analyze the data from Hunan Province. The main conclusions are as follows:(1) Wage income of farmers will increase production so that farmers simply fell financing needs; (2) Increase the wage income of farmers so that farmers can expand production increased financing needs; (3) Increase the wage income of farmers will make financing farmers daily living expenses decline in demand; improve (4) Household wage income would make the financing needs of large household consumer spending rose. And put forward specific policy recommendations:(1) A variety of ways to improve the level of wage income farmers; (2) To create a better financial environment to meet the financing needs of farmers; and (3) Financing government to give farmers more support.