Research On Financial Support For The Rural Land Market Circulation

Finance and markets cannot be separated. Similarly, the agricultural land market is inseparable from farmland finance in much the same way that agricultural land is also inseparable from the financial market. Thus, the agricultural land market is the foundation and premise to achieve the financial support of agricultural land. How to build and form agricultural land market has become the key to the realization of the commercial finance of agricultural land. The formation and development of agricultural land market need the reform of agricultural land ownership as a breakthrough. Therefore, it is a current theoretical and practical task to build agricultural land market transfer mechanism with a strong commercial and financial support through the innovative way to realize farmland property.China’s current "separation of three powers" of farmland property system is also difficult to meet the financial requirements of market economy development, leading to the problems that land financing function cannot be fully realized, that agricultural land and capital are not freely conversed and that it is still difficult to get loans of farmland. These problems are as follows. First, the right of circulation operation achieved by the scale operators based on the circulation of agricultural land market is the limited debt right based on the contracts. It is not of the property of bank guaranties. Thus, it is difficult to implement financial support. Second, when business entities put the income of farmland management as collateral,the collateral vaule of identification and assessment has no uniform standard;And when the borrowers fail to pay due debts,the bank how to dispose the collateral is the biggest difficulty.Third,the rural financial supply system, which is mainly supported by monetary finance and partly by commercial finance, but not supplemented by private lending, support little the rural market and lack continuity. Therefore, this article attempts to explore the establishment of new agricultural land market transfer mechanism with farmland ownership ratio of market circulation as a breakthrough, thereby creating the conditions for financial support for farmland market economy.Based on the theoretical analysis, this paper will tap the status of financial support, financial supply situation, the will to carry out agricultural land mortgages, the traits of financial needs, and the formal credit constraints from the perspective of supply and demand on the market circulation of agricultural land. Second, three variables- financial subsidies, the formal bank lending and private lending situation-will be used to analyze the financial support of agricultural land transfer depending on the source of funds. It aims to establish the impact on the agricultural business entities, the willingness of agricultural land transfer and circulation size by the empirical research on econometric model. At the same time, it will put more emphasis on the support effect of agricultural land transfer by commercial finance mainly represented by bank loans. Finally, with the proportion of agriculture land property market turnover as a breakthrough, this paper will improve farming financial support system and achieve the strong support of the transfer of agricultural land market by business finance.The main innovation conclusions drawn by the thesis are as follows:(1) The main reasons of the serious shortage of rural financial supply, the constraints of the formal credit demand in sample regions are that the limited nature of agricultural land property market led to the limited nature of rural financial markets against the background of the current agricultural land transfer system and that the incompleteness, instability and the inadequacy of market circulation mechanisms lead to that the free converse cannot be achieved between the agricultural land and the capital. Only by the transfer system innovation of farmland property rights, the fundamental problem of inadequate circulation financial support of agricultural land market will be solved.(2) If the impact of financial support variable on the will and number of scale operation entities into the land is positive, the influence of the financial subsidies is maximum and the effect of regular bank loans is relatively small, indicating that the land transfer behavior by the scale operation entities are dependent on state subsidies to a certain extent. Moreover, because of the limit of agricultural land property rights transfer market, bank finance has not played the main role of supporting agriculture.(3) The agricultural land transfer efficiency of business entities in the sample regions is generally low. The main cause of inefficiency is the unbalance of the proportion of such factors as investment capital, land, labor and so on. the transferred land is in such a great size that there is not enough capital to support it. The impact of financial support variables on agricultural land transfer efficiency is positive, among which the impact of financial subsidies on agricultural land transfer efficiency is the largest. However, the effect of regular bank loans is relatively small, indicating that the efficiency by the transfer of agricultural land, to some extent, is dependent on the fiscal subsidies. Similarly, the limited agricultural land property market lead to that bank finance is not adequate to support rural land transfer and scale operations.(4) With the proportion of agricultural land property market turnover as a breakthrough, the innovation of agricultural land transfer mechanism is endogenous way to solve the shortage of financial support of agricultural land transfer. By giving the farmers and the scale business entities more complete, stable, free-flowing farmland property rights, farmers will be easy access to effective mortgages of regular bank loans. Banks are more willing to offer financial support and farmers are more easy to gain regular loans. In the market mechanism, it is possible to achieve free conversion of agricultural land and capital, thereby enhancing the support effect of business finance on the transfer of agricultural land.