The Impact Of Agricultural Supply Chain Finance On Farmers’ Income Increase

The key to consolidating and expanding the achievements of poverty alleviation to comprehensively promoting rural revitalization lies in industrial revitalization,but for rural industries that are generally in a state of financial suppression,financial support is the key driving force for promoting rural industrial revitalization.To this end,China has successively developed various agricultural credit products and agricultural financing models in recent years,focusing on solving the problem of poor farmers and agricultural loans,but in recent years,with the differentiation of farmers and the rapid development of new agricultural business organizations,the shortage of funds is still an important factor restricting the development of rural industries.Under the background that the financial products represented by traditional microcredit can no longer meet the financing needs of the agricultural industry and the credit needs of various business entities,the agricultural supply chain finance has emerged to meet the needs of agricultural modernization development,which provides new ideas for improving the rural credit model and promoting the income growth of rural households,and also has important practical significance for promoting the integrated development of rural agricultural industry.In order to study the income increasing effect of agricultural supply chain finance on farmers,a case study was conducted to analyze the interactive mechanism and main practices of the main actors in the bamboo industry supply chain finance in Chishui City.The logical framework of each actor’s behavior and the innovative operation mode of agricultural supply chain were summarized,providing a reference and replication model for the development of agricultural industry in Guizhou and the steady promotion of modern rural industry revitalization in other regions.At the same time,a bivariate Probit and OLS regression model based on the Heckman two-stage model is constructed to conduct empirical research on farmers’ income level and income structure from multicollinearity test,joint Probit test,income heterogeneity test and robustness test.Firstly,the on-site research results indicate that nearly half of the farmers in the survey participate in local agricultural supply chain finance and the main way of participation is by joining cooperatives.The widespread social network and acquaintance effect play a significant role in relatively closed rural areas.Secondly,the case study of bamboo chain loans in Chishui City reveals that participating in agricultural supply chain finance can effectively expand the channels for increasing farmers’ income and increase their income.The success of the agricultural supply chain finance practice in Guizhou Province is not only an inevitable choice for the external conditions of Chishui City,but also benefits from the government’s requirements in the new development stage and the actual industrial development of Chishui City.Through the collaborative innovation of multiple stakeholders,the agricultural supply chain finance promotes the integration and high-quality development of the bamboo supply chain in Chishui City,improving the credit availability of all parties.Finally,the empirical results show that farmers’ participation in agricultural supply chain finance has a significant positive impact on their annual income level,and the main impact path is to increase their agricultural operating income and supporting income;The higher the income level of farmers,the more significant the income increase effect of participating in agricultural supply chain finance;Regardless of the form of farmers’ participation in agricultural supply chain finance,it is positively correlated with their income,but the most significant income increase effect brought by "joining cooperatives" to farmers.This article proposes policy recommendations based on the above conclusions from four aspects: policy support,financial product development,business environment,and risk sharing mechanism,in order to achieve a virtuous cycle development of agricultural supply chain finance.