Effects Of Pastoral Borrowing On Costs And Income

Since the 18 th National Congress of the Communist Party of China,China has stressed the need to promote common prosperity in high-quality development,the most arduous and onerous task is still in the countryside,the focus is to make farmers rich,the difficulty is how to make farmers continue to increase their income,and pastoral areas,herdsmen is the key.However,in recent years,the rising production cost of forage has increased the economic burden of herdsmen to a certain extent.The lack of funds has seriously affected the livestock production of herdsmen,and the demand for funds in pastoral areas has become increasingly strong,resulting in a trend of scale expansion of herdsmen’s loans.However,excessive loans of herdsmen are not good for their income.In this context,based on the survey data of 831 herdsmen in Ordos City and part of Xilin Gol League of Inner Mongolia in 2011,2015 and 2020,among which 560 herdsmen had borrowed money,descriptive statistical analysis was conducted from the aspects of borrowing amount,borrowing purpose,borrowing channels,borrowing and the relationship between borrowing money and cost and income.In addition,a multiple linear regression model is constructed to analyze the impact of borrowing on cost and income,considering the influence of production mode on the relationship between borrowing,cost and income and the robustness of the model.The benchmark regression results show that borrowing funds has a significant impact on the cost and income of herdsmen,and borrowing funds can increase the cost and income of herdsmen.The production mode has a significant impact on cost and income.Compared with the production mode of pure breeding,the production mode combined with planting and breeding has enhanced the impact of borrowing on the cost and income of herdsmen.The robustness test results show that the regression is carried out with variables controlling only Ordos and Xilin Gol League in 2020,and the results show that the influence of pastoral borrowing on cost and income is still significant,indicating that the model is robust.The research conclusions are as follows: 1.Herdsmen have strong demand for loans,and the loan amount tends to rise on the whole.2.Formal lending channels are the main choice for pastoral households with borrowing needs at this stage.3.The loan of herders is mainly used for productive expenditure.