Study On Agricultural Loan Availability

Since the reform and opening up,China's economic development has made remarkable achievements,the urban economy,the secondary and tertiary industries have been fully developed.But at the same time the dual structure of the economy became increasingly prominent,both between the urban and rural areas,and between the development levels of industries,which meanwhile accompanied by the widening development gap between rural finance and urban finance.For economic reasons,from the 90 s of last century,the major banks began to draw back their rural branches,which speed up the blood loss process of rural and agricultural economy and make the economics' dual structure became more stabilized.As a result,small-scale farm structure and lower management level have always been the main industrial form in the agricultural sector;For the agricultural products processing industry,the characteristics of small-scale,low-level management,weak technology accumulation have led to the lackage of development potential.Thus,The lack of self-development has further strengthened the blood loss process of the industry,and this progress lead to the vicious cycle of lagging agricultural development and insufficient credit availability.The thesis selects 57 industries of the agricultural and industrial sectors,builds the theoretical projects according to the historical financial data of these industries,calculates the risk-adjusted performance indicators of the projects: relative performance indicator aRAROC and absolute performance indicator EVA.Through the analysis of performance indicators,the article have got the following conclusions:Due to the double restriction of income and size factor,the relative and absolute performance indicators of agricultural production loans are poor,and the agricultural sector faces serious financial exclusion;For the agricultural processing industry loans,their profitability and profit stability are better than other types of industrial loans.And as a result,the relative performance indicators are performing better,but also due to the limited scale of production and credit demand,the absolute performance are relatively low,which result in the situation that the agricultural products processing industry have to face some kind of credit " order pecking".Based on the theoretical analysis of agricultural loan performance,this paper uses the fixed assets investment data of different industries to construct the panel data model in order to find out the influcing factors of loan availability.The result shows that the project scale factor has the greatest and positive effect on the loan availability of agricultural project loans;profitability and its stability have positive but not significant effects on the loan availability;government investment scale have a certain "crowding out" effect on the credit avilibility,which may because both the agricultural investments and loans have a strong policy background.For the agricultural processing industry,the result shows that,investment scale,state-owned investment proportion,asset-liability ratio all have significant effects on the availability of credit.The gaps of investment scale and state-owned investment proportion between the agricultural product processing industry and other industrial departments are the most important factors in deciding the their credit availability gap sizes.But It's worth noting that,as time passes by,the two types of industural gaps are decreasing;The repayment ability advantage of agricultural processing industry has played an optimistic role in the issue of credit availability,but the continuous improvement ability is limited.After the study of the performance and availability status of agricultural project loans,the situation of agriculture working capital loan have been analyzed.Firstly,as a main forms of working capital loan,the situation of farmers' agriculture loan is briefly discussed.And find out that the material purchasing and financing activities are gradually transformed from farmers to corporates.Then the article mainly focus on the working capital loan availability of agricultural products processing industry.First the working capital calculation formula of the CBRC was used to estimate the liquidity gap,the actual financing amount and proportion.It is found that the financing realization level of the agricultural products processing industry is relatively low compared with other industrial sectors.And through multivariate regression analysis,it shows that the disadvantages in scale and capital intensity are the main restricting factors for the availability of working capita loans.After the three main factors(profitability with its volatility,scale level,technological development)that restricted the availability of agricultural loans are obtained,China's current agricultural policies on improving the above bottlenecks are reviewed.And after analysising foreign experiences of related support policies,evaluation on China's agricultural policies are given.At the final part of the article,suggestions are put forward on the constructions of agricultural support policies and financial support system.