Analysis On Credit Demand Of Rural Households With Different Land Scale

Rural finance has always played an important role in promoting agricultural economic growth.It is necessary to further stimulate the catalyst function of rural finance in the period of deepening rural reform in an all-round way and the transition period of agricultural modernization.Rural financial services have always been a weak link in China's financial system.Although financial services coverage in rural areas has improved,the depth of services is still insufficient.At the same time,with the accelerated transfer of rural labor to the non-agricultural sector and the large-scale transfer of agricultural land,China's traditional homogeneous small farmers are gradually evolving into heterogeneous small farmers,moderate-scale farmers,and large-scale farmers.However,different operating entities have large differences in terms of business purposes and production methods.This will objectively form differentiated demand for credit products and financial services,which in turn brings new challenges to rural finance.At this stage,rural financial services are mainly depend on credit.Therefore,it is necessary to analyze the difference in borrowing demand of farmers in different sizes,and to examine the main factors affecting the scale of borrowing demand and the channels of borrowing of farmers in different sizes.This has important practical significance for promoting financial institutions to actively innovate credit technology and credit products,optimize the supply structure of rural lending markets,and meet the multi-level and diversified borrowing needs of different types of farmers in the process of agricultural modernization.On the basis of sorting out relevant literature,this paper takes farmers with different scales of land management as research units,examines the borrowing needs of farmers,and analyzes the formation and how to meet the needs of farmers theoretically.We use the data from the 2015 China Family Finance Survey(CHFS)to divide the sample farmer households into farmers of different sizes by referring to overall situation of land management scale and existing literature.After statistical description and analysis of the basic characteristics and loan demand characteristics of the sample farmers,we use the binary logit model,Heckman model,and Biprobit model to demonstrate the willingness of borrow demand,the scale of loan demand for different uses and borrowing channels of different sizes farmers.The finds are as follows:(1)On the whole,the credit needs of farmers are relatively strong,and with the expansion of farmer operation scale,the credit needs are also increasing.Regarding the structure of borrowing demand for farmers,in terms of use structure,there is a difference in the strength of credit demand for production and consumption of farmers in different sizes.Small-scale farmers and large-scale farmers have opposite characteristics of the relative intensity of productive credit demand and consumption credit demand.In terms of credit channels,the proportion of informal borrowers of different sizes of rural households is higher than that of formal credit.As in previous surveys,informal credit remains an important credit channel.(2)Regarding the farmers of different scales,the main influencing factors and effect intensity of the willingness of credit demand are different.Specifically,among small-scale farmers,increasing age,married farmers,increasing risk aversion,and education levels will reduce farmers 'willingness of credit demand,while expanding household size will increase farmers' willingness of credit demand.Among large-scale farmers,increasing age and increasing risk aversion will reduce farmers' willingness of credit demand,while the number of immediate brothers and sisters will increase their willingness of credit demand.(3)Regarding the farmers of different scales,the main influencing factors and effect intensity of the scale of productive credit demand are different.Among small-scale farmers,rising risk aversion and the number of non-agricultural labor forces will restrain the scale of productive credit demand.Among moderate-scale farmers,the increase in risk aversion and the increase in the number of non-agricultural labor will suppress the scale of productive credit demand,while the increase in financial knowledge and the total value of agricultural machinery will promote the scale of productive credit demand.Among large-scale farmers,age and the increase in the number of non-agricultural labor will suppress the scale of demand for productive credit,while the increase in the number of direct brothers and sisters will promote the scale of demand for productive credit.(4)Regarding the farmers of different scales,the main influencing factors and effect intensity of the scale of consumption credit demand are different.Among small-scale farmers,increasing age,increasing risk aversion,and increasing educational attainment will promote the scale of consumption credit demand,while the expansion of household size and increase in medical spending will curb the scale of consumer credit demand.Among moderately sized households,household have household cars,increased medical expenditures,and increased non-agricultural labor force will promote the scale of consumption credit demand.Among large-scale farmers,the increase in the total value of agricultural machinery and the number of immediate brothers and sisters will curb the scale of consumption credit demand.(5)Regarding the farmers of different scales,the main influencing factors and effect intensity of credit channels are different.Among small-scale farmers,age,risk appetite,household cars,agricultural productive income,and the total value of agricultural machinery have a significant effect on farmers' credit channel tendencies.Among moderate-scale farmers,marital status,family size,household cars,non-agricultural labor force,education level,and total value of agricultural machinery have significant effects on farmers' credit channels.Among the large-scale farmers,the total value of household automobiles,agricultural machinery,and the number of direct siblings have a significant impact on the farmers' credit channels.Based on the research conclusions,this article proposes some policy recommendations,such as improving human capital via increasing education investment,improving financial product services and providing differentiated financing needs,and improving the rural dual financial structure to meet the diversified needs of farmers from the aspects of individual farmers,financial products and financial supply structure.By studying the credit demand of rural household in different land management scale,and understand the strength and satisfaction of their credit demand,which provides a basis for classified management of rural household,business transformation of financial institutions,and structural optimization of rural financial resources.