The Research Of Demand And Market Oriented Reform Of Agricultural Development Finance In China

Since 2004, over the years the central "Document" are proposed to improve the rural financial service requirements. CPC General Secretary Hu Jintao presided over in August 2007 in the forty-third Politburo collective study stressed the need to finance the rural financial reform and development as the focus of the work, speed up the establishment meet the "three rural" characteristics of the multi-level, wide coverage, sustainable modern rural financial system. Promotion of the central series of documents, the new round of rural financial reform from 2002-2003, the pace accelerated after. Since 2002-2003, the reform of rural financial market has achieved some results, but, after the market reform the rural financial market is still facing a series of outstanding issues from the diverse, wide coverage, the requirements of sustainable development, there a great distance. Transformation of rural financial institutions after the commercial, agricultural financing increasingly difficult situation, especially a large number of low-income people in rural areas, micro-enterprises and infrastructure construction is difficult to have an effective financial support to rural financial services are not "down."The practice of international experience shows that agricultural financial policy is a useful supplement to commercial finance, the purpose of its existence the market mechanism to compensate for defects, play a sound financial system and optimizing the function. Therefore, their experience is different way of financial "free allocation", and unlike commercial finance "chase profit", but need government support, subject to agricultural and rural economic development objectives, to the backward areas and groups transportation funds. However, China’s agricultural policy from the realities of the financial system point of view, the scope of its business more and more radiation in all aspects of agriculture can not meet the needs of its financial support of agricultural credit financing difficulties increasingly prominent.In the future for a long period of time, agriculture, rural areas and farmers remains our most important problem, "agriculture" in the field of production efficiency is not high, their development needs the necessary policy support, agricultural policy finance system is support an important part of the means. How to determine China’s future agricultural policy reform of financial system orientation has been the theory and practice community to explore and debate. In this study, from the current agriculture and rural areas of China-specific populations, specific industries and specific areas of policy financial needs, analysis of agricultural policy need financial system, while the combination of agricultural policy within the international financial market operation the main trend, drawing on international development and more successful experience in reform model, from the supply mechanism innovation of agricultural policy and agricultural policy reform and financial market operation path of the two point of view of promoting China’s agricultural policy finance in maintaining and expanding existing have a policy on the basis of sexual function, enhance its operational efficiency and sustainability of their operations and the operation of the progressive realization of the reform of market-oriented path. The Paper is divided into seven parts, of the main contents and conclusions are as follows:Part 1:The empirical analysis of policy-based agricultural finance demandIn the existing rural financial system, a considerable part of the farmers affected with the financial exclusion. Farmers through field survey, we found that in 601 households in the sample,32.78% of the households affected by the financial exclusion, including self-exclusion and 121 rural households, accounting for the financial exclusion of 61.42% of total households, households with 30 households exclusion condition, accounted for by the financial exclusion of 15.23% of total households, prices exclude 29 households, accounting for the total number of households affected by the financial exclusion of 14.72%, close to the exclusion of 17 households, accounting for the financial exclusion of 8.63% of total households. Further analysis of the farmers affected by the financial exclusion of factors found in rural areas by commercial Xing relatively serious financial exclusion of farmers have the following characteristics:low level of education, family and labor the total population Jiaoduo fewer, can be pledged assets and the production area of small and low wage income. This part of the farmers is the potential of agricultural policy finance clients, especially the price of rejection by farmers.Secondly, the stylized facts and survey data of author’s empirical research results indicate that the current agricultural enterprises face Relatively serious financial constraints.The high loan interest rate, the formalities trival and the difficulties to meet the loan conditions are the main factors that restrict agricultural enterprise to achieve their loan requirements.45% of sample enterprise face financial institutions’ financial constraints.Even all kinds of agricultural industrial leading enterprise have no significantly advantages in the financial gain ability, the current commercial financial institutions mainly preference those agricultural enterprise with larger assets, long operation time and the good market competitive.This accords with commercial Banks’ principle on control transaction costs and lower the risk. A large number of agricultural enterprises are facing the financial constraints that will limit the growth of the enterprises’ development and also restrict our transformation and upgrading form traditional agriculture to modem agriculture.and the competitiveness of enterprises’ improvements. So the government is necessary to strengthen the policyrelated financial support to the agricultural enterprises through financial policies In addition,the current agricultural and rural infrastructure construction’s funding resources mainly includes departments at all levels for finance support fund and departments of the village’s funding. Although public finance is increasing investment on agriculture basic construction,the financial capital of agriculture infrastructure support is still very limited. Agriculture and rural infrastructure field still has very big financial demand gap. Tthe support of agricultural policy finance is necessary in the future.Part 2:The innovation and services down the supply of policy-based agricultural finance based on Wholesale financial modelA large number of rural financial markets in the current low-income people and small enterprises are excluded from the existing rural financial service system, the majority of financial institutions and policy away from these people, in providing financial services to these groups when confronted with diseconomies of scale and the problem of high transaction costs, so we need to top the success of policy transfer financial resources to the "bottom" of the low-income people to improve China’s Agricultural Policy financial support role. Therefore, this article is designed based on the agricultural policy of wholesale financial model financial supply innovative ideas and draw on the experience of the Indian model, this paper argues, through effective contract design will be the top policy-oriented financial institution lending through intermediary financial institutions can benefit low-income households in rural areas and small businesses. Meanwhile, in order to prevent the diversion of intermediary financial institutions, policy loans and not pay attention to control risks and improve their own sustainable business, the wholesale intermediary financial institutions can also carry out supervision of financial institutions, the establishment of appropriate incentive and restraint mechanisms, according to agency business plans specified performance targets to monitor the intermediary financial institutions, the establishment of intermediary financial institutions to measure quality, financial sustainability and customer coverage width and depth of indicators on the performance of intermediary financial institutions to make a reasonable assessment. However, because the poor peasant households with low- and middle-income and some agricultural enterprises cannot bear much financing cost, the consistent running of the wholesale financial mechanism mainly dependents on the properties of the wholesale financial institutions (commercial or policy) and the pricing of wholesale lending rates. Only if we select policy financial institutions with the main target of government policy direction and inclusive finance as the top of financial institutions, and offer financial intermediaries to the policy-related wholesale loans with favorable interest rate, and make full use of the financial intermediaries’ advantages in information and location, can we provide low-and middle-income groups continuously with financial resources, and make financial resources effectively" move down".Part 3:The sustainable management and financial reform path of policy-based agricultural finance based on bidding methodThis paper discusses the bidding method based on agricultural policy and reform of financial market operation path, the focus of agricultural policy finance the operation of market-oriented feasible path, and a variety of financial institutions into the business end of the financial policy of agricultural policy finance system of sustainable management. Bidding method based on the perspective of agricultural policy analysis carried out within the financial sector, bidding for the operation of market-oriented way of motivation and operating conditions, focusing on the mechanism of action in theory, as well as future areas of application in the real world and can be expected development. Through the part of the study, this means that the future agricultural policy bidding is expected to become China’s agricultural financial policy to support agriculture and rural financial system is an important realization of the path, although this approach has its own unique operating conditions and certain limitations, but China’s agricultural policy in the future market-oriented financial system, the operation of the reform process, ways need to pay full attention to the bidding can play important role in policy will be incorporated into the financial system reform and development framework for overall planning, positive test should be some specific areas, and gradually accumulated experience and developed.