Research On The Impact Of Digital Finance On The Agricultural Income Of Large-Scale Farmers

A strong country must first strengthen agriculture.In the process of China’s agricultural modernization transformation,large-scale farmers have become an important subject of agricultural production development.Agriculture is the foundation of national economy and at the same time is a kind of weak industry,there are many obstacles in the development of agriculture,and large-scale farmers are constrained by credit funds,making it difficult to expand reproduction.Traditional financial integration digital technology has spawned a new financial model,digital finance uses big data,cloud computing and other technologies to reduce the transaction cost of financial services,alleviate information asymmetry,effectively benefit rural areas,and improve the financial availability of rural residents.The easing of credit constraints gives large-scale farmers the opportunity to increase investment in agricultural production,adjust the allocation of factors,and then promote agricultural income.Under this background,this paper studies the impact of digital finance on the agricultural income of large-scale farmers and its mechanism,on the one hand,this study is conducive to exploring the realistic path of reducing costs and increasing efficiency in agricultural operations,and on the other hand,it provides theoretical support for the policy formulation of financial services for rural revitalization.Based on the microscopic perspective,this paper studies the influence of digital finance on the agricultural income of large-scale farmers.Firstly,this paper summarizes the domestic and foreign literatures about digital finance and farmers,farmers’ income,and digital finance and agricultural production.And then,based on the theory of scale economy,the theory of farmers’ behavior,the theory of digital economy and internet finance,this paper combined with the literature to make a theoretical analysis on the agricultural income-increasing effect and the mechanism of digital finance.Secondly,the hypothesis is verified by empirical model.In this paper,the least square regression method is used to test the effect and mechanism of digital finance on the agricultural income of large-scale farmers,and IV-2SLS and other methods are used to solve endogenous problems.At the same time,the heterogeneity test is carried out from four aspects: agricultural service,human capital of large-scale farmers,agricultural production types and geographical environment.The nonlinear effect of digital finance on agricultural income of large-scale farmers is analyzed by using cross-section threshold model.Finally,according to the research conclusion,the corresponding policy suggestions are put forward.Based on the empirical results,this paper draws the following conclusions:First,digital finance has a significant positive impact on the agricultural income of large-scale farmers.Second,digital finance has a stronger income-increasing effect on the agricultural income of large-scale farmers who receive agricultural services,skills training,and engage in planting production.The impact of digital finance on agricultural income increases with the increase of farmland management scale in plain areas.Thirdly,digital finance can affect agricultural income by promoting large-scale farmers to increase agricultural capital investment,expand the scale of agricultural land management,and transfer agricultural labor to off-farm.Fourthly,digital finance has nonlinear effects on the agricultural income of large-scale farmers,which are digital finance threshold effect,capital investment threshold effect,and human capital threshold effect.Therefore,we should increase the development of digital financial infrastructure,strengthen digital financial support for agriculture,improve agricultural factor markets,strengthen agricultural services in rural areas.Compared with previous studies,the research object of this paper is the group of largescale farmers.The research content focuses on the impact and mechanism of digital finance on agricultural income,which enriches the research results in related fields.However,there are still some shortcomings in this paper,and the analysis of the mechanism is not deep enough.In the future,we can analyze the impact mechanism of digital finance on the agricultural income of large-scale farmers from different perspective.