A Study On The Impact Of Microfinance On Farmers And Herdsmen Operating Income

The state and the society from all walks of life focus on the problem of "Agriculture,rural areas and farmers",and the key of solve this problem is to promote rural pastoral areas’ income with high benefit farming and animal husbandry production,and high benefit of farming and animal husbandry production need enough capital support,and at this stage,operation and insufficient funds is the main factors hindering the development of the farming and animal husbandry production.To this end,the Inner Mongolia autonomous region vigorously develops inclusive finance,aiming at strengthening credit support to rural pastoral areas to meet the needs of agricultural and animal husbandry operation funds with financial credit,so as to ensure the efficient development of agricultural and animal husbandry production and promote the increase of operating income of farmers and herdsmen.As a financial tool innovation,microfinance has become one of the main credit methods in rural pastoral areas in Inner Mongolia,playing a key role in ensuring the development of agricultural and animal husbandry production,easing credit constraints in rural pastoral areas and promoting the increase of operating income of farmers and herdsmen.However,this key role is largely dependent on the application of micro-credit funds in agricultural and animal husbandry production.As the main application area of micro-credit funds,the input of agricultural capital has an important impact on the growth of operating income of farmers and herdsmen.Therefore,this paper based on the field research data of farmers and herdsmen in six counties,Inner Mongolia autonomous region,makes an in-depth study on the impact of micro-credit on the operating income of farmers and herdsmen and discusses its impact mechanism.On the basis of theoretical analysis and research on the current situation of income,expenditure and credit of farmers and herders,two hypotheses are put forward.Hypothesis 1:micro-credit will promote the increase of operating income of farm and herding households;Hypothesis 2:micro-credit promotes the increase of operating income by affecting the input of agricultural capital of farming and herding households.Hypothesis 1 was verified and analyzed through the construction of Treatment Effect Model,and it was found that micro-credit can promote the increase of operating income of farming and herding-households,and for every 1%increase in the probability of obtaining micro-credit,the probability of increasing operating income of farming and herding-households will increase by 27.37%.For further research on microfinance mechanism affecting farmers and herders business income,by building a Mediation Effect Model and select farmers and herders agricultural capital investment as the intermediary variables to verify this hypothesis 2,found that microfinance impact farmers and herders family business income is implemented through the Mediation of agricultural materials input variables,and the Mediation Effect of agricultural capital investment accounted for the proportion of the total effect at 52.967%.The research shows that micro-credit has a positive effect on the increase of operating income of farmers and herders,but their demand for micro-credit has not been met.Are put forward in this paper should strengthen the microfinance multi-channel supply to meet farmers and herders microfinance demand,at the same time should be innovative microfinance products to increase the intensity of microfinance support farming and animal husbandry production,and with more accurate service aiming at improving coverage for microfinance,to provide long-term financial support for agriculture development,promote farmers and herders business income increase.