A Study On The Debt Solvency Of Herdsmen Lending In Xilingol League

As an important feed base for animal husbandry production and management,grassland plays a vital role in the development of animal husbandry.However,in recent years,serious grassland degradation,frequent disasters in pastoral areas,and deterioration of grassland ecosystem have led to the reduction of grassland productivity.The existing grassland can not meet the needs of animal husbandry production.Herdsmen need to maintain animal husbandry production and management by purchasing forage,which makes herdsmen unable to bear the cost of breeding.Therefore,they need to maintain or expand the scale of animal husbandry by borrowing money.In addition,the support of national financial policy to pastoral areas has promoted the development of pastoral lending.Therefore,the study of the solvency of borrowing and lending herdsmen provides a basis for avoiding risks,and also provides suggestions for promoting the development of pastoral areas.In this context,this study conducts a theoretical analysis of herdsmen's solvency through reading a large number of relevant literature at home and abroad;collects relevant data of Xilingol League's borrowing and lending situation based on questionnaire survey,uses descriptive statistics to analyze the overall production and living situation of Xilingol League;and uses empirical analysis method to study the solvency of sample herdsmen in this area.Firstly,a regression model is established to test the impact of herdsmen's borrowing behavior on animal husbandry income,and its solvency is analyzed according to the various costs generated in the process of lending.Secondly,the solvency of herdsmen is evaluated intuitively through descriptive statistical analysis.Finally,the solvency of herdsmen is studied through deductive reasoning of herdsmen's income and cash flow function.The results show that:firstly,the loan can not increase the income of herdsmen,but the total expenditure generated by the loan is increasing,which ultimately leads to the difficulty of balancing revenue and expenditure.Secondly,on the whole,herdsmen's ability to repay capital is still at a low level,which can not make up for the cash flow of business activities.Thirdly,in the process of production and operation of herdsmen,the cash inflow point only exists when they are out of the market,while the cash outflow point occurs at any time throughout the year.The unequal cash inflow and outflow reduces herdsmen's debt paying ability.Therefore,the following suggestions are put forward:optimizing the income structure of herdsmen,reducing the cost of borrowing;improving infrastructure,building information communication channels;flexibly changing lending terms and increasing subsidies in a timely manner.