Empirical Study On Financial Support For Modern Agricultural Development In Hubei Province Under The Rural Revitalization Strategy

Since 2004,the Central Committee has consistently issued the No.1 central document with the theme of ’agriculture,rural areas,and farmers’ for 20 consecutive years.This highlights the crucial role that ’agriculture,rural areas,and farmers’ play in China’s socialist modernization and economic development.As the lifeblood of the real economy,modern agriculture’s development and financial support are crucial research topics for achieving rural revitalization and promoting the process of agricultural modernization in China’s social economy’s high-quality development.Therefore,studying the internal relationship between financial support and modern agricultural development is of great significance and is an important basis for comprehensively promoting rural revitalization strategies.The original intention of this article is to understand the actual situation and research progress of rural financial support for the modernization of agriculture,and to recognize the impact of financial support in Hubei Province on the development of modern agriculture.Increase financial support,expand investment space in agriculture and rural areas,accelerate the transformation of agricultural scientific and technological achievements and the implementation of infrastructure construction projects,in order to promote the modernization of agriculture.At the same time,China is currently in the primary stage of socialism,and it is an important period for the market economy to shift from high-speed development to high-quality development.Deepening rural financial reform and increasing rural financial support play an important role in rural economic development and rural industrial transformation.This paper thoroughly reviews the domestic and foreign research literature on rural finance promoting the development of agricultural modernization,takes the agricultural development theory and agricultural finance development theory of development economics as the theoretical support,studies the impact of financial support on the development of modern agriculture in Hubei Province,collects panel data of Hubei Province from 2011 to 2021 from Hubei Statistical Yearbook and other data sources,and selects gross agricultural output value as the overall indicator of agricultural development,The balance of agricultural loans from financial institutions and fiscal expenditure on supporting agriculture are financial support indicators,while rural electricity consumption,effective irrigation area,labor input,labor productivity,and total planting area are control variable indicators.Through the F-test,Breusch Pagan test and Hausman test,the fixed effect model(FE)is selected for empirical analysis.Through the analysis,agricultural loans and financial expenditure of financial institutions have a certain role in promoting modern agriculture in Hubei Province.There is a significant correlation between the total agricultural output value and financial institutions’ agricultural loan balance,fiscal support for agriculture expenditure,rural electricity consumption,effective irrigation area,labor input,labor productivity,and total planting area indicators.From the empirical results,it can be seen that in the process of financial support for modern agricultural development in Hubei Province,there are problems such as insufficient support for rural finance,insufficient supply of agricultural support funds,and unreasonable methods.The imperfect development of the agricultural financial market has to some extent constrained the development of modern agriculture.Finally,it is proposed to enhance policy support for the development of modern agriculture,improve the financial service system of modern agriculture,enhance the level of financial risk support,and improve agricultural input-output efficiency in the process of developing modern agriculture.