The Research On The Influence Of Financial Literacy On Farmers’ Moderate Scale Management

To achieve rural revitalization,it is necessary to adhere moderate scale agricultural management.In 2017,the No.1 document released by central government proposed to accelerate the development of land transformation,service-oriented and other forms of scale management.Farmers are the main social basis of China’s agricultural production.To achieve moderate scale management,they should not only consider the expansion of land scale,but also implement agric ultural production outsourcing.The survey data shows that the proportion of moderate scale management of farmers in China is not high at present.Although China’s credit resources have paid attention to the field of "agriculture,rural areas and farmers" to provide financial support for farmers’ moderate scale management,it still faces the problems of farmers’ weak willingness for moderate scale management and insufficient demand for productive finance.How to cultivate farmers’ awareness of moderate scale management and promote farmers achieve moderate scale management are problems that should be paid attention to in accelerating China’s agricultural modernization.Financial literacy,as a kind of human capital of farmers,helps farmers to form a sense of scale management and make rational decisions.Facing the transformation of China’s agricultural production to modernization and the demand of inclusive finance’s business sustainabili ty,it is necessary to explore the relationship between farmers’ financial literacy and their moderate scale management.Based on the idea that the realization of farmers ’ moderate scale management should consider the expansion of land area and the outsour cing of agricultural production,it is considered that financial literacy can promote farmers’ awareness of moderate scale management and directly enhance their enthusiasm for moderate scale management.Financial literacy can also indirectly promote the participation in farmers’ moderate scale management by increasing the availability of formal credit,enhancing risk preference and alleviating information constraints.After measuring the financial literacy level of Chinese farmers by using CHFS2015 data and factor analysis method,this paper empirically tests the relationship between financial literacy and farmers’ moderate scale management by using ordered Probit model.It is finds that financial literacy can promote farmers’ moderate scale management.The results of heterogeneity analysis show that,comp ared with the farmers in eastern area and farmers who don’t have confirmed land,the moderate scale management of central and western farmers and farmers who have confirmed land is more influenced by financial literacy.The results of mechanism analysis show that formal credit access,risk preference and information access are the intermediate mechanisms that financial literacy affects farmers’ moderate scale management.Based on the empirical research results,in order to provide reference for improving farmers’ financial literacy and promoting agricultural moderate scale management,this paper puts forward suggestions for in-depth cooperation with platforms and organizations related to scale management,systematic financing based on agricultural supply chains,guiding farmers to release product ive financial needs and improving rural land transfer systems and agricultural production service systems.