The Research Development Of Farmland Finance In China

Three dimensional rural issues and rural financial system, as two hot topics in modern economic life, has seriously hampered the development of agriculture and rural economy in China. How to solve the two hot issues that we need thought hardly. Involved with three dimensional rural issues, we need to break the bottleneck of the main income sources of the farmer, while involved with rural financial reform, we need to seek a new fulcrum in order to achieve the equilibrium of rural finance. Based on this, we put our eyes on rural land which has the most economic value and has not yet been fully utilized in rural areas. I believe that the combination of rural land and rural finance could lead to capitalize rural land and form the system of rural finance. It is a good choice that rural finance will not only broaden the channels of the farm income increasing but also support for the new collateral, which solves effectively three dimensional rural issues and rural financial system.The research development of farmland finance is the topic of this paper. And this article analyzes the status of China’s rural financial system through rural land institution and then proposes farmland finance. At the same time, we learn farmland finance experience from foreign countries and Taiwan Province of China and understand that the government will play an important role in constructing farmland finance system. So through the acts of government and the pilot cases of rural financial analysis, we construct the suitable model of farmland finance and also propose the problems and prevention of risks. This paper is divided into seven chapters, the specific contents are as follows:Chapter1:introduction. This chapter is the overall planning for the article. On the foundation of the established research theme, the academic perspective of farmland finance at home and abroad is analyzed, by which the clue of research content and research methods are determined and the possible innovations are explained. Chapter2:overview of China’s rural land system. This chapter reviews the process of rural land reform in past sixty years. From founding of New China to reform and opening up, China’s rural land system experienced changes three times, including private landowners to private farmers, collective management, and collective ownership. After reform and opening up, our country had experienced twice land contract. On this basis, we use the theory of property rights to analyze and think about the status of rural land system seriously. We obtain a conclusion that a deep understanding of the development of the land system is better beneficial of rural economy.Chapter3:China’s rural financial system innovation:farmland finance. This chapter proposes farmland finance through analyzing the excess demand and insufficient supply of China’s rural financial system. And generally speaking, farmland finance is secured and has a long period of the loan repayment, at the same time, with the dual property of commercial finance and financial policies. So it is necessary to develop farmland finance business now. But there are some problems and risks to need to solve adequately.Chapter4:comparative analysis of farmland finance at home and abroad. This chapter comparatively analyzes the background, operational mechanisms and characteristics of farmland finance from different countries represented by Germany, the United States and Japan. So is Taiwan province. Furthermore, through deep understanding of farmland finance at home and abroad, we learn more experience to better construct our own farmland finance system.Chapter5:the analysis of government behavior in construction of farmland finance. Government is a most significant participation body in building rural land finance. This chapter further expounds the necessity of intervention of the government into building farmland finance on the basis of public choice theory, the new institutional economics and market failure theory, etc. Taking RCC as an example, it analyze the role of government in the change of rural financial system in order to illustrate that while the government is playing an important role in establishing farmland finance, it also need to position itself as to deal with the relationship between the government and the market.Chapter6:the status of farmland finance and case studies in China. This chapter reviews and describes the history of the construction of farmland finance, and makes a detailed analysis about exploration of farmland finance in China through three cases study including the pilots of MeitanGuizhou, JiangjinChongqing and Chengdu.Chapter7:the construction of farmland finance system. Based on the basic principles of building farmland finance, this chapter elaborates the SWOT of the system and undertakers, puts forward the pattern of developing farmland finance, which is appropriate for the present condition of our country. This pattern can be unscrambled that the central government directly authorizes each provincial government and provincial governments authorize each financial office. Every financial office will establish the farmland financial office which takes the charge of coordinating and managing the rural land finance business among Territory departments, Agricultural Development Bank and RCC. Among them, the territory departments are responsible for the related land problems in rural land financial. Agricultural Development Bank issues bonds to raise funds with the help of policy. Rural credit cooperatives use coverage and close to people to develop its business. In the last part, this passage visualizes its operation and implementation steps and explains the problems to be solved in building farmland finance and prevention of financial risks.