| This dissertation studies the difficulties of farmer loan guarantee and the mechanism to solve it. Many farmers in the countryside long for the credit support to produce and manage. But because of the adverse selection and moral hazard brought by the high risk of agriculture and the seriously asymmetric information, many fanners are confronted with numerous problems such as high risk, difficult supervision and high cost. Under the drive of management objectives which maximize the profits and minimize the risk, current financial institutions in the countryside either transfer the abundant capital from the rural area to the urban area or provide the high financing guarantee requirements for famers. According to the actual situation, owing to the relatively limited guarantee ability of farmers, lagged service of agriculture credit and the lack of relevant supporting mechanism and conditions, farmer loan guarantee may get into troubles, which will lead to the extreme difficulty of farmer financing. To some degree, the essence of loan difficulty is the guarantee difficulty. In order to change the passive situation of poor financing for farmers, the existing problems in farmer loan guarantee need to be solved.I. Main research contentWithin this dissertation, the relevant scientific theories including institutional economics, information economics and behavior economics will be used. With scientific methods such as historical induction, comparative analysis and model analysis, in order to develop the effective channel in farmer loan guarantee and offer support on theories, examples and thoughts to promote the sound development of rural finance, this dissertation builds the framework of theoretical analysis in farmer loan guarantee, draws lessons from the foreign experience in farmer loan guarantee, analyses the situations, reasons and effects of the difficulties in farmer loan guarantee, creates a kind of mechanism to solve the difficulties in fanner loan guarantee and moreover designs an effective guarantee mode. The main research contents include:(1)building the framework of theoretical analysis in farmer loan guarantee;(2) comparing and analyzing the foreign farmer loan guarantee;(3)investigating and analyzing the current situations and difficulties in farmer loan guarantee;(4) the empirical research of reasons in difficulties of farmer loan guarantee;(5)the empirical research of results of the difficulties in farmer loan guarantee;(6)designing the mechanism to solve the difficulties in farmer loan guarantee;(7)selecting the effective guarantee mode in farmer loan.Ⅱ Main research conclusion 1. Under the overall environment of lagged construction in rural financial system, comparatively low levels in production and operation of farmers and the low effect levels, farmer loan guarantee has become the touchstone of farmer loan. The farmer loan guarantee is featured by the higher guarantee requirements caused by lower credit level. Moreover, moral hazard and operation risk become the focus in guarantee process and then the guarantee quality is mainly reflected in the degree to achieve the obligation rights. Except the fact that whether the guarantee body has the right and the economic assurance ability and whether the guarantee is legal or valid, in the process of fanner loan guarantee there are many important decisive factors such as the validity of credit guarantee mechanism, guarantor’s ability to control the risk, the motive and willingness to guarantee, interest balance mechanism and the effective implementation of guarantee contract.2. By learning from the foreign experience in farmer loan guarantee, we can know that considering the real situation of farmers in providing effective credit guarantee is vital. Designing the methods of farmer loan guarantee according to the farmer’s needs is the important principle; improving the mechanism of risk control is the effective way to reduce the farmer loan guarantee; optimizing the credit environment is the safeguard in running the fanner loan guarantee; perfecting the supporting measures is the condition to ensure the successful implementation of farmer loan guarantee and getting the support from government is the strong supporter in developing the farmer loan guarantee. We are inspired to accelerate the innovation in farmer loan and diversify the methods of farmer loan guarantee. Moreover, we have to improve the level and quality of supply in farmer loan to ease the difficulties in farmer real guarantees, develop the agricultural insurance and financing insurance to perfect the sharing system in farmer loan risk, optimize the rural credit environment to improve the sound running of farmer loan guarantee, speed up to improve the supporting conditions and legal systems in order to ensure the effective implementation of farmer loan guarantee and promote government support or legislative guarantee to develop farmer loan guarantee.3. The difficulties in farmer loan guarantee are featured by lacking the effective guarantee, guarantor and system. In Chongqing, among the farmer loan guarantee in recent years, the mortgage loan accounted for the highest proportion which is followed by the third-party loan and credit guarantee. Within the samples, the farmers receiving the loan can account for28%and inadequate guarantee conditions lead to failing to get the loan. The farmers using the traditional method will have the lowest satisfaction and those using the mortgage will have the highest satisfaction. The credit supply in large banks is featured by the higher guarantee standards, so the new rural financial institutions will lower their requirements but still choose mortgage guarantee. The farmers usually have the limited amount and cheap value in personal properties, but comparatively lack the household financial assets. Their real estate guarantees are mainly their houses, they seldom use contract rights of forest and land to mortgage and the third-party guarantees are often their relatives or friends. The creative guarantee methods such as the guarantee of property rights, biological assets and mutual help are lacking. In a word, the guarantee mode is too simple and single.4. Difficulties of farmer loan guarantee are rooted in the fact that farmer’s guarantee ability is inadequate; the internal advantages and resources fail to use effectively; financial institutions, society and government don’t give the enough support and furthermore the outside forces and many mechanisms of farmer have the shortcomings. The model tests show that there are mainly three factors resulting in the difficulties of farmer loan guarantee: the first is about the farmer. The insufficient household income and tangible assets, the poor use of proprietary rights, and the ineffective reputation guarantee mechanism are the important factors; the second is about financial institutions. The service level of farmer credit, cognition of credit guarantee and the management of credit technology have shown the effects; the third is about supporting conditions and the outside environment. The accompanying conditions of credit implementation, guarantee mechanism of the third party, the protection function of agricultural insurance on agricultural risk, social credit environment, legal systems are their important factors. The probability of meeting the requirements for guarantee in different kinds of farmers has the obvious differences. The entrepreneurial farmers have the highest probability, and the small comprehensive farmers engaging in modern agriculture follow them.5. The difficulties in guarantee will influence the availability of farmer loan and may result in the disparity of production and development conditions of farmers and the income and welfare of farmers. These difficulties may restrict the obtaining amount of loan, exert the great influence on formal credit channel of farmers and increase the difficulties in getting the long-term loan and operating loans, thus raising the interest rates of farmers and bringing many transaction costs such as guarantee implementation costs, broker fees and intangible fees. Among the variables which may affect the satisfaction degree of farmer loan, education level of farmer, household incomes, financial assets, the question whether joining in the cooperative community, agricultural insurance and the institutions of professional assessment have the obvious positive effects, while the contract and management rights in soil and the present value of movable property have passed the salient test in mortgage model. The farmer’s post only has the obvious influence on credit guarantee and the number variables in the bank haven’t shown the obvious effect. As for the affluent farmers, they have the obvious advantages in expanding the production scale, increasing the productive assets, management items, household income, living assets and the consumption.6. By principles of creativity, approaching, systematization and compatibility, effective system should be built and strengthened comprehensively in order to solve the difficulties in farmer loan guarantee. The first is the improvement mechanism in farmer’s ability to guarantee themselves. We have to intensify the guarantee role in physical assets, strengthen the guarantee system in reputation and give full play to guarantee potential in proprietary rights. The second is extension mechanism in the third party. We should promote the guarantee mode of companies purchasing the agriculture products and new rural economic organization to build the guarantee system of professional security organizations. The third is improvement mechanism of the loan management in financial institutions. We’d better drive the revolution in farmer loan mode, strengthen the management in loan process and improve the service level in credit. The forth is to intensify the promotion mechanism in credit environment. We need to build the farmer’s credit system and also build the commitment mechanism in moral and integrity incentive and that of organization supervision. The fifth is to perfect the system of insurance shares. We should expand the varieties of agricultural insurance, strengthen the system of agricultural insurance and build the relief mechanism of major disasters in agriculture. The sixth is the assistance system of government which should increase the financial support, optimize the financial assistance mode, carry out the supervision mode of differentiation and accelerate the construction of accompanying system of farmer loan guarantee.7. The choice of implementation mode in farmer loan guarantee should obey the management rules of credit risk. Proceed from the reality of countryside, farmer property guarantee closely related to the first source of payment needs to be promoted, such as:guarantee mode of product collateral, guarantee mode of orders and accounts receivable, guarantee mode of management right and income right in agriculture project. Based on farmer reputation constraints, we need to promote the guarantee mode to make use of advantages, bypass the disadvantages and overcome the difficulties in relatively lacking the high-value physical assets within farmer’s house, for example:loan mode of personal credit guarantee for farmers; loan mode of group guarantee; credit mode of mutual guarantee. Combined with various production management and demands for loan like crop production with low added value, high added value, animal and sea production and farming industry, farmer loan guarantee with diversification and differentiation should be built and strengthened. Based on the continuous improvement of property right system in rural area and its accompanying systems, we should energetically explore the farmer’s land usufructuary right guarantee with the longer view. Ⅲ Main innovation point1. This dissertation explores a comparatively sound vision theory in analyzing the difficulties of farmer loan guarantee. Based on the institutional economics, information economics and behavioral economics, it analyzes the farmer economical behavior, features of loan demands, supply conditions of farmer loan and the guarantee functions in theory, so it clarifies the way and effective determining factors of farmer loan guarantee and further dissects the dependency between farmer loan and guarantee and the constraints on loan demands and supplies from guarantee conditions.2. From the perspective of farmers, based on the statistical data, this dissertation systematically and profoundly research the situation, causes and the effects of farmer loan guarantee. When exploring the causes of the difficulties in farmer loan guarantee, it has the deeper research in the use of proprietary rights of farmers, cognitive bias of financial institutions, credit technologies and the methods of government support compared with former research. Moreover, with mode of Logit, this dissertation examines the effect of farmers, financial institutions, external supporting conditions and environment on farmer loan guarantee and uses the mode of Order Logit to examine the actual effect of difficulties in farmer loan guarantee on satisfaction degree of farmer loan guarantee.3. This dissertation demonstrates and offers the design considerations and principles in solving the difficulties on farmer loan guarantee, on whose basis it comprehensively builds the specific mechanism to solve the difficulties on farmer loan guarantee from six aspects, compared with former research. Combined with reality, it determines the basic principles and overall thought in selecting the mode of farmer loan guarantee and designs innovatively the effective guarantee mode of farmer loan in four aspects. |
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